Remortgaging and the benefits of doing it

Choose remortgaging to bring down the amount of monthly repayments on your mortgage

13:59 18 June 2014

Remortgaging can help you, shorten the term of mortgage or clear out debts.  You can achieve remortgaging by moving your mortgage to another lender or by working out another loan scheme with the same lender for the same property .

 

The following could be good reasons to remortgage your property:

 

• To bring down monthly repayments by getting a lower cost mortgage.  Make use of the increased value on your property which can be used for paying off other debts or improving the newly purchased mortgage.

 

• Monthly payments may also be brought down by increasing the mortgage terms; this will however stretch the refinancing period and correspondingly increase the money spent for interest charges.

 

• There could be other types of loans that are applicable when remortgaging a property.  If for some reason you want to extend the term of mortgage, do not go into any deals without comparing the rates particularly designed for remortgaging.

 

Reasons for remortgaging

 

Remortgaging means the homeowner with an existing mortgage replaces it with loan from another mortgage lender or a totally new loan from the same lender.  This is usually done when the mortgage is almost paid up and they would like to make use of the surplus equity that has gained value over time.  Some homeowners apply for remortgaging to get money to pay off debts through debt consolidation or to shorten the terms of the mortgage.  Remortgaging is effectively a way of getting more value for your current property.  By and large, homeowners get on remortgaging whenever the market rates are good and end results will yield more than enough to offset the costs of refinancing.

 

Look Only for Remortgage Plans

 

Having an existing mortgage gives you the advantage of already knowing the intricacies of financing transactions.  As for remortgaging, the same procedure generally applies.  You will have to find the best deal offering the lowest rate.  To be able to get a fair valuation of the companies you seek, limit your search to schemes which are just designed for remortgaging.