You have heard the term used many times, your local estate agent has recommended one in passing and your uncle Smith has likely had one at least once in his life.
That’s right, we are talking about the term “remortgage,” but what is it?
In this article, we explain exactly what a remortgage is and list a few scenarios in which remortgaging might come in handy.
What is a Remortgage?
In short, a remortgage is a term used to describe a financial loan that exists on a property you already own. You remortgage in order to borrow more money against your property or to replace the existing mortgage. A remortgage can take place on a residential, buy to let or commercial property. Everyone from the first-time buyer to professional portfolio landlord can remortgage their property.
Remortgage Scenarios
There are a number of different reasons why you would want to remortgage your property, we list a few scenarios below:
- Your current mortgage deal is coming to an end – In this situation it is likely you will receive a letter and a phone call from your current lender, they may offer you a new mortgage rate, before accepting you might want to speak an independent mortgage broker who can access a wider market and help you find the right mortgage for your needs.
- You need some extra cash – If your property has a healthy amount of positive equity then you might be able to remortgage at a lower rate allowing you to gain access to a large amount of cash. Most lenders will want to know why you require the extra money so be prepared to provide them with evidence. Lenders are more likely to offer you the extra cash for home improvements like a loft conversion or extension.
Before embarking on a remortgage you should consider any early repayment charges or exit fees that may be attached to your current mortgage terms. Here’s a link to our mortgage repayment calculator which can give you an idea of what your monthly payments might be for a particular loan. Enter the amount, the interest rate and select a mortgage type to find out what it’ll cost each month.
At Mortgages and Insurers Solutions we can help you find the right mortgage, contact us for a no-obligation discussion on 0208 364 3444 or visit us at www.mortgagesandinsurers.co.uk where you can request a callback.
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.