How Many Times Can I Re-Mortgage My Property?

One question often asked when it comes to remortgaging is how many times a property owner can do it. You will be happy to know that there is no limit as to the number of times you can remortgage your home. Why, then, do most people remortgage only once when they have a chance to raise capital over and over again? Because there are several factors that stop them:

 

Borrowing too often will affect your credit

 

Every time you take out a loan it is recorded in your credit report and your credit score goes down. If you take out a remortgage over and over again your score will soon be so bad that you will not get loans from lenders and anyone else. That is why the best remortgage advice is to do it only once.

 

Your equity is affected

 

The equity on your property is calculated by taking the value of the property and then subtracting the amount you owe on it. If you remortgage more than once you will end up with negative equity which means that, once again, lenders will not want to give you any money.

 

It is too expensive

 

Each loan you take out when you remortgage has to be paid off every month. Think about the amount of money you pay to your lender right now and then imagine paying twice or thrice that amount every month. The truth is that remortgaging more than once is so expensive that most people simply cannot afford it.

 

The condition of your property may mean you cannot get a loan

 

Each time you remortgage the lender has to come and do a valuation. Imagine that you take out a remortgage now and qualify. If you want to take out another mortgage 5 or 10 years from now you would have to do a lot of repairs for any lender to consider you – property deteriorates over time. Repairs cost money and most people cannot afford to do them every few years just to take out a second or third mortgage.

 

Want to learn more? You can talk to Mortgage Advice Services, one of the leading companies in Nottingham when it comes to giving re-mortgage advice. They have highly qualified consultants who tailor-make solutions for e ach of their clients based on their overall financial picture. You can find out more by calling them on 01332 257 087 or on their website, http://www.mortgageadviceservices.co.uk/remortgage.htm