What is a Re-Mortgage ?
Re-mortgaging is the process of refinancing your existing loan either with a new lender or simply arranging a new deal with your existing lender.
If you decide to re-mortgage you will be presented with a range of different options, for example, you could decide to make variations to the mortgage term, by extending the term you could reduce the monthly repayments or you could reduce the term and pay more off the outstanding loan amount on a monthly basis.
The majority of people are simply re-mortgaging to get a better rate when their fixed-rate deal comes to an end and they are moved onto their current lenders (SVR) Standard Variable Rate.
When it comes time to re-mortgage your existing loan remember you don’t have to stick with your current Bank or Building society search the market for the best deals available.
Who can Re-Mortgage ?
Anybody can re-mortgage providing your circumstances haven’t changed dramatically since your first loan was arranged.
If you are currently out of work or if the properties value has reduced significantly since the loan was taken out you could struggle to re-mortgage with a different lender, however depending on your situation it may still be possible to refinance your loan with your existing Bank or Building society.
Should you Re-mortgage ?
This all depends on your own personal circumstances and what deals are available at the time, don’t be tempted by a great rate without fully understanding what you are signing up for.
For example, if you are considering selling the property in a year it would be foolish to sign up to a 2 year fixed rate deal as you would face hefty ERC’s (Early Repayment Charges) when you sold the property. If you are unsure about re-mortgaging contact us today and we will do our best to guide you through the process.