Important Ideas You Need to Know about Remortgaging

Important Ideas You Need to Know about Remortgaging

Remortgaging is the process of paying off the current mortgage that you have with the proceeds coming from a new mortgage making use of the same property as a form of security or bond. The goal is to get a better interest rate from a new lender instead of paying the rate from your current lender which is not as favourable for you.

The good thing about remortgaging is that you don’t need to move to a new house or buy a new house. You simply take out a different mortgage on the property. You will still have a mortgage, but with a more favourable interest rate, and possibly terms and conditions as well. You can remortgage with your current lender or an alternative lender.

There are a lot of reasons for remortgaging. This includes reducing the size of the payments, raising the capital and consolidating all other short-term debts that are deemed expensive.

Get the right advice

The concept of remortgaging might seem easy, but it is actually tough. Therefore, you need an expert on your side explaining to you what needs to be done. A quality broker will help in finding the most suitable lender for you and help you go through all the requirements. You can get help from Mortgage Wise and eventually find the perfect lender.

Try shopping around

You can do your own research since there are some products that are only available from direct lenders and not from brokers. This takes time and effort, but you can take matters into your own hands. It does not mean though you should no longer trust your broker to do the job. It does not hurt to combine the connection you have with an agent and your personal research. In the end, you can determine what works best.

Never feel tied to your current lender

It is great to have a lender who has decided to accept your application for a loan. It does not mean though you can’t find a better option out there. If there are better lenders and the interest rates are more favourable, you should not hesitate to remortgage.

Have your home valued

Never underestimate the current value of your home or its potential value. Ask a surveyor to come over and give it an actual price tag. This allows you to have a clearer idea especially when you decide to go for remortgaging.

Take your time searching for the right mortgage and follow the steps to successfully transition to a new mortgage. Pay attention to the advice provided by the experts in remortgaging to make it easier for you to deal with the rest of the steps.

 

Categories: Finance

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