What is Remortgaging?
Put in simple terms, remortgaging is moving your outstanding mortgage to a different provider, or to a lender who may be able to offer better rates of interest than you are currently paying. With remortgaging you take out a new mortgage against your current property, which you then use to pay off the outstanding amount with your old provider, meaning that in everyday terms you are essentially transferring the loan to your new provider. It is an excellent way of ensuring that you are maximising the value of your home and not paying more for your mortgage than you need to.
Reduce Your Monthly Mortgage Payments
With remortgaging you may be able to lower your mortgage repayments by taking advantage of lower interest rates that weren’t available when you took out your existing mortgage. Remortgaging allows you to maximise your finances and if your house has increased in value since you purchased it, remortgaging enables you to free up the additional equity that you have built up, which can then be used as you wish - to pay off existing debts, carry out home improvements or purchase a buy to let property.
How can Airline Mortgage Shop Help?
Come and speak to us at Airline Mortgage Shop to see how we could help you with looking into remortgaging and saving you money on your monthly repayments. Mortgages are such a popular financial product that there are literally thousands to choose from, and our experienced, knowledgeable staff can talk you through the variety of options available. Every one of our customers is an individual with a specific set of needs and we will tailor our searches to find the very best product for your circumstances.
Things to Think About Before Remortgaging
Whether remortgaging at the present time is right for you will depend on your individual circumstances. Airline Mortgage Shop can help you work out the potential savings and costs. Some important things to think about are:
If you are currently on a fixed rate deal and want to leave before it ends you will have to pay an early repayment charge (ERC), normally a percentage of your mortgage balance.
An exit fee payable to your old provider as well as valuation and set up fees to your new lender are other costs involved with remortgaging you will need to account for.
Any new lender will assess your finances - remember that changes to the way people are assessed for mortgages and any personal changes to your finances or work may affect whether you are accepted by them.
If you decide to release equity from your property when you remortgage you will be borrowing more and therefore will see an increase in the your monthly mortgage payments.
Do your sums carefully when considering releasing money to pay for a project or consolidate debt. Although your mortgage may have a lower interest rate than a credit card or loan, it is borrowed over a longer period of time so may cost more in the long term.