![]() |
Why Choose a Remortgage?A remortgage can be used for the purpose of gaining lower interest rates on your mortgage or raising finance through releasing equity. The term "Remortgage" is used to explain the process of moving your mortgage to a new lender. A different lender may offer a significantly better deal than your existing lender. A remortgage means you are ending your current mortgage scheme and switching to a new scheme. A remortgage generally involves changing mortgage lenders because most lenders do not generally offer remortgage schemes to existing customers. Mortgage lenders offer discounted interest rates and other desirable introductory offers to attract mortgage holders to switch to their particular lending institution. Review your current mortgage. If you feel you are paying excessive rates of interest, compared to other lenders then a remortgage may save on your monthly payments. Alternatively, you may be looking for a way to finance an extension or purchase a new car, you could seek to increase your mortgage and take the extra sum as cash. Releasing equity is a good way of raising additional finance. If your home has positive equity - its market value is greater than the outstanding mortgage - you can increase the size of your mortgage. One of the most common reasons for remortgaging is to reduce costs. By switching to a lower interest rate you can either benefit from lower monthly repayments, or keep the monthly repayments the same, thus repaying the loan quicker and reducing the overall term of the mortgage. A remortgage should be considered for a variety of reasons: Reduce Outgoings By switching to a mortgage deal with lower interest rates you could save a considerable amount over the term of your mortgage. Debt Consolidation A remortgage can allow home owners to consolidate their existing debt into one manageable monthly payment. Debt consolidation makes life easier in the short term and makes savings in the long term. Equity Release If your home has increased in value since you took out your mortgage it may be worth considering releasing some of the tied up equity. Equity release can be one the cheapest forms of borrowing. The remortgage process is relatively simple, and the process from start to finish normally lasts between 4-6 weeks. In terms of costs there is no stamp duty to be paid, as you are not purchasing a property. Many lenders will pay some or all of your valuation and legal fees. In some cases there may be an arrangement fee or booking fee from the new lender. There may also be redemption penalties on your existing mortgage and you will need to take these into account when assessing how much money you could save by remortgaging. You may freely reprint this article provided the author's biography remains intact: About The Author
Mortgage rates are falling at fastest pace since the 2008 crash Business Insider Mortgage Interest Rates Today, December 9, 2023 | Latest Jobs Report Points to Lower Rates in 2024 Business Insider What Is A Reverse Mortgage? Bankrate.com Can You Get A Mortgage Without A Job? A Complete Guide Zing! Blog by Quicken Loans Mortgage Refinance Rates: Compare Current Rates Business Insider Does Refinancing A Mortgage Hurt Your Credit? Bankrate.com When to Refinance Your Mortgage: 5 Times to Consider It Business Insider Mortgage Interest Rates Today, December 6, 2023 | Rates Down Ahead of Next Week's Fed Meeting Business Insider Best Mortgage Refinance Lenders of December 2023 Business Insider Mortgage refinance demand spikes as rates fall Greater Baton Rouge Business Report 15-Year Mortgage Rates: Compare Current Rates Business Insider Mortgage refinancing: What is it, and how does it work? CNN Underscored How soon can you refinance a mortgage? CNN Underscored How much does it cost to refinance a mortgage? CNN Underscored Top Auto Loan Refinancing Lenders NerdWallet Refinance Appraisal: How It Works And What To Expect Bankrate.com Is Now a Good Time for a Mortgage Refinance? NerdWallet Refinance mortgage applications hit two-month high Mortgage Professional A strategy to buy a home and set up a future refinance Community Voice Mortgage Rate Forecast for 2024 USA TODAY Current Student Loan Interest Rates in December 2023 Business Insider Current national mortgage and refinance rates, November 27, 2023 | Majority of rates rise Bankrate.com MBA: Mortgage Applications Increased in Weekly Survey Calculated Risk 15-Year Mortgage Refinance Rates: Compare Current Rates Business Insider The Great Pandemic Mortgage Refinance Boom - Liberty Street Economics Liberty Street Economics - Current VA refinance rates today Business Insider Africa Mortgage refinance: What is it and how does it work? Yahoo Finance Home Loans For Single Moms | 2023 Programs And Assistance The Mortgage Reports VA loan refinance: What is it and how does it work? Yahoo Finance Will Mortgage Rates Go Down in 2024? What Homebuyers Should Expect Business Insider How To Choose The Right Kind Of Refinance For You Bankrate.com When Should You Refinance Your Mortgage? Bankrate.com The best mortgage lenders for refinancing in December 2023 CNN Underscored 7 Ways To Refinance A Mortgage With Bad Credit Bankrate.com Mortgage Interest Rates Today, December 7, 2023 | Rates Low So Far This Month Business Insider India What Credit Score Do I Need To Refinance? Bankrate.com Mortgage Interest Rates Today, November 30, 2023 | Rates Dip Even Further as Markets Eye Fed Cuts Business Insider Best Mortgage Refinance Lenders In 2023 Bankrate.com How Long Does It Take To Refinance A House? Zing! Blog by Quicken Loans Mortgage Interest Rates Today, December 1, 2023 | Rates Fall Further, Boosting Affordability Business Insider Cash-out refinance: How does it work? CNN Underscored Do I Need Money Down To Refinance My Mortgage? Bankrate.com Should You Refinance Halfway Through Your Mortgage? Bankrate.com How Soon Can I Refinance My Mortgage? | Mortgages and Advice | U.S. News U.S News & World Report Money 2 Reasons Why a Free Mortgage Refinance Could Be Right for You The Motley Fool What To Know About Second Home Refinancing Bankrate.com Refinancing To Avoid Foreclosure: FAQs Zing! Blog by Quicken Loans Cash-Out Refinance For Home Improvements Bankrate.com What's The Cost To Refinance A Mortgage? Zing! Blog by Quicken Loans CFPB Mortgage Report Finds Jumps in Closing Costs and Denials for Insufficient Income, Growing Proportion of Cash ... Consumer Financial Protection Bureau
|