Mortgage Advice Services: What are the main reasons for re-mortgaging?

What are the main reasons for re-mortgaging?

Re-mortgaging is the process of transferring a home loan from one lender to another. Yes, you have the option to move your debt if a good opportunity presents itself. However, re-mortgaging is not only for those who intend to move to a new residence.

Re-mortgage reasons

Homeowners re-mortgage their property for many reasons. Again, you can re-mortgage your home even when you are not planning to relocate. Some of the most common re-mortgage reasons are as follows:

To find better mortgage rates. Mortgage rates vary from time to time, and from one lender to another. You can re-mortgage your home if interest rates fall, or if you are able to find a lender that can offer you better deals. This strategy can help you save a lot of money.

To obtain additional funds. If you are in need of a large sum for an important project, say a new car, home re-modelling, or college tuition, re-mortgaging your home can be a good idea. This is particularly suitable for homeowners with a good amount of equity in their property.

To change from a variable to a fixed rate. Variable rates are those that fluctuate periodically. If you want your monthly payments to be fixed at a certain amount and budget your earnings more efficiently, then you may need to consider re-mortgaging your home.

Benefits of re-mortgaging

Easier loan application. A re-mortgage is a secured loan. Banks are more likely to approve this type of a loan because they have a guaranteed way to collect even if all goes wrong with the borrower. If you do not have a very good credit score, or if you want to avoid the hassles of unsecured loan application, then re-mortgaging must be for you.

Lower interest rates. By re-mortgaging your home, you can avail of a loan that has a lower interest rate. Credit cards, personal loans, and business loans, usually have very high interest rates. However, in order to maximize your savings, you will have to be careful about the lender you will go to

There are several benefits of re-mortgaging. To make the most out of it, however, you have to be selective of the lender that you will move your loan to. You may call 01332 257 087 to find out how you can re-mortgage your home with the best deals available. You can also visit http://www.mortgageadviceservices.co.uk/remortgage.htm for more re-mortgage advice.