For most individuals, a mortgage is their one major financial commitment. Remortgaging is a common way to save money today and more and more people are choosing it as a financial option. A remortgage is the process of changing a mortgage from one lender to another, by clearing off the first mortgage with the reimbursements of the new one, with the similar property as security.
Remortgage reasons
There are several reasons that make people remortgage; some to save money, others to find a more flexible or suitable deal than the existing one.
· To save money - the lower the rate of interest the lower the monthly payments, therefore compare your current mortgage rates with deals available. Even if you presently have a good deal, ensure you know when it is due to end. You also need to factor all fees and costs involved before changing your mortgage.
· To raise money - If you want raise money for home improvements, you can remortgage if you can afford new payments, as long as the improvements will add value to your property. For debt consolidation, you can remortgage so as to get money to clear debts. For releasing capital, you can remortgage through equity release if your property has added value during the mortgage period.
· For flexibility or suitability- Changes in individual circumstances such as divorce or redundancy may change mortgage needs and capacity to repay the loan. You may also want to change terms or features of the mortgage. Deficit in investment income; you can remortgage if your current investment plan looks uncertain to cater the full repayment when the term ends.
Benefits of remortgaging
When you remortgage you are able to save on a cheaper interest rate. You are also able to get funds for home improvements making it possible to increase the value of your home. When you remortgage you are releasing money from your property’s equity. This will give you cash for a holiday, car or other needs as long as you will be able to maintain the new payments. Another pro of a remortgage is the ability to move to a flexible mortgage. In this case, you are able take payment breaks and enjoy the reimbursement of an off-set mortgage.
Re-mortgage advice
Increasing house prices will increase the interest rates; therefore reconsider your re-mortgage decisions. House prices are rising all the time and it can be difficult to predict how the housing market may change. So take a look at our website for a free, no obligation quote today http://www.mortgageadviceservices.co.uk/remortgage.htmLabels: benefits of re-mortgaging, Nottingham mortgage advice, process, re-mortgage rates, re-mortgaging fees, the re-mortgage process
