Whether you’re looking to renovate your home and need to find some money to fund the renovations, or simply want to save some money on your monthly repayments, remortgaging could help you do this.
But for those who have never remortgaged before, it can all seem a little overwhelming, so we’ve put together this article to run through the fundamentals of the remortgaging process!
What does remortgaging mean?
The standard definition of ‘remortgaging’ is when you swap your current mortgage from one lender to another. Remortgaging allows you to look at different mortgage deals than the one you’re currently on to better suit your present needs.
As with most purchases we make, we like to find the best deal so we know we’re getting the most out of our money- the same can be said for your mortgage! By remortgaging, you can shop around and might even be able to find a cheaper mortgage deal than what you’re currently on!
So even if you’re happy with your current mortgage rate, sometimes the grass is greener on the other side and there really is no harm in seeing what other mortgage deals are out there.
Why do people remortgage?
There are many reasons why people might want to remortgage- it isn’t just about saving money, although that could be a major benefit! Here are some of the other reasons why people remortgage:
· To release equity from their home to fund new home renovations
· To release equity to help pay off debts
· Your current mortgage rate is up for renewal
· To make overpayments
So, you see, there really are many reasons why people remortgage.
What do I need to do now?
If remortgaging is something you’re considering, the process isn’t too different from applying for you initial mortgage.
Again, lenders will want to make sure you’re a low-risk borrower, so you’ll need to provide proof of your monthly earnings, employment, and credit history.
So you see, remortgaging really isn’t as scary as it seems! If you do have questions, or want some help getting all your paperwork in order, get in touch with one of our advisers who are on hand to guide you through the process.
You may have to pay an early repayment charge to your existing lender if you remortgage.
Important information
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1%, but a typical fee is 0.3% of the amount borrowed.