Mortgages & Loans UK

UK Remortgages - What is Remortgaging?

What is remortgaging? - Raising funds and releasing equity

A re-mortgage can be explained in many ways but put simply it is when a borrower moves their mortgage from one lender to another lender.

There are many reasons for choosing to remortgage. Raising funds by releasing capital in your home or just saving money by reducing your monthly repayments, a change in your personal circumstances may force you to reconsider your finances.

Remortgage's are not always associated with bankruptcy or financial difficulty, switching your mortgage to a new mortgage lender just gets you a better deal.

Remortgaging Benefits

  • A better rate of interest and lower mortgage repayments .
  • Consolidate loans and outstanding debts into one manageable monthly payment .
  • Raise finances to for those luxuries like holidays and transportation.

The remortgaging process is like moving home in the sense that you have to go through the same legal process with a solicitor. But remortgaging is less complicated, the deeds already being registered in your name eliminates the need to exchange contracts with third parties.

With a competitive remortgage market, a re-mortgage has become a popular choice and many borrowers usually re-mortgage to gain a favourable rate of interest. It is advised that you should find out what redemption charges are in force when accepting remortgage deal.

Disadvantages of a Remortgage

The number 1 reason is the same as any loan secured on your property " your home at risk if you are unable to keep up repayments on the mortgage" you will have heard these words many times if you have used your home as security on a finance deal.

Consolidating your debts by remortgaging is not always a secure way of raising capital property valuations, legal costs and other related feessholud be taken into consideration before commiting your self That's why you should talk to professional remortgage advisors or brokers first.
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