What is re-mortgaging?


The concept of re-mortgaging has become very popular in this tough economy and a lot of home owners are exploring this option as a means to save money on mortgage repayments. By definition, re-mortgaging refers to the process of moving your mortgage from one lender to another. For example, if you have a mortgage with bank ABC, you may want to move that loan to bank XYZ because the monthly repayments for bank XYZ are relatively flexible than ABC. However, the primary purpose of re-mortgaging a house is to save money.

How Does Re-mortgaging Work?

The process of re-mortgaging may take a number of steps. However, it is important to note that the process of moving from one lender to another will cost you some fees. The first step is to get all the paper work needed. You will need your current bank and mortgage statements. Additionally, try to figure out how much money you will have to pay every month for your new mortgage. Secondly, you need to know the fees involved from moving from one lender to the other.

In most cases, the average fee will be reasonable for the ordinary homeowner but it is still important to know how much it is. You can also ask your lender to better your deal with the second lender before you move but if they cannot, you should proceed and apply for remortgaging. It is also important to get mortgage advice before you make the first move.

The Benefits of Re-Mortgaging

Remortgaging has a number of amazing benefits, especially for homeowners who are tight on funds. Here are some of the main benefits of re-
mortgaging:

·         You get flexible monthly payments: The primary purpose of switching lenders is to get a flexible monthly payment schedule that you can easily pay without straining so much on your finances.

·         Get a cheap mortgage: If you are struggling to pay your current mortgage then remortgaging is perhaps the solution you need. This can help you secure a cheaper mortgage that you can pay off easily and within the time set.

·         Reduce the mortgage term: If you can get a cheaper mortgage and stick with your previous monthly payments, you can finish paying up your mortgage sooner than you thought. You can also get reduced monthly payments, extend the mortgage term and pay flexibly every month.

The idea of re-mortgaging has a diversity of great benefits. However, before you make any move make a point of looking at re-mortgage information. You can also call us or visit our website for more details http://www.mortgageadviceservices.co.uk

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