REMORTGAGE FACTS REVEALED
Changing your mortgage without changing your home is call a remortgage. A mortgage is simply a secured loan on property or land. A Remortgage is usually cheaper than simply getting a new mortgage.
There are charges for remortgaging you home which you must consider before making a decision.
- Valuation charge
- Legal fees
- Arrangement fee (to lender)
- Broker fee
- Early repayment charge
Even after these costs it is often cheaper to remortgage but you should calculate them before committing to remortgage.
Lenders have had to adapt to the needs of customers to ensure that there is a mortgage to suit everybody. If you have a mortgage on a property there is nothing to stop you looking for a better deal. You could find another mortgage that has a lower interest rate, this would inevitably save you money as it would reduce your monthly outgoings.
Release Your Equity
The steep rise in property values over the last few years has been well documented, and if you currently have a mortgage that is a number of years old, then you could take advantage of this. A property which had a £100,000 mortgage 5 years ago, could now be worth £150,000 if the market has moved in it's favour. As well as the natural increase in values, the property could have been extended, had a loft conversion or any other kind of upgrade, and this will also add value to the property. Remortgaging one of these properties will mean you get a bigger mortgage than originally taken out, giving you extra cash.
It is always important to remember that each individual's and circumstances are different, so your decision should be based on the above factors as well as the benefits of each financial product.
