A mortgage is a loan taken against your property. You can re-mortgage either to replace your existing mortgage, or to borrow money against a home you already own. When planning to re-mortgage, you have to make careful deliberations of its pros and cons.
Advantages of Re-Mortgages
* Save on interest charges. The best time to re-mortgage is when the interest rate is lower. Re-mortgaging allows you to lower the amount you have to pay every month. If you are also looking to change from a variable to a fixed rate, re-mortgaging can be your best choice.
* Consolidate debts. Paying different types of loans with different due dates can be tedious. More than that, unsecured loans such as credit card debts, personal loans, and car loans usually have higher interests. By re-mortgaging, you can have them all merged into a single loan with more affordable monthly payments.
* Free up some cash. If you need a large amount of cash for college tuition, an investment opportunity, or an emergency situation, re-mortgaging makes a good option.
Disadvantages of Re-Mortgaging
* Higher over-all cost. You should know that re-mortgaging comes with fees that can outdo the benefits you might receive from negotiating for a cheaper rate. There is a chance that you will be paying the same types of fees you did when you first bought the property. Your property will need to be reassessed, which might entail costly legal documentations. Further, you might get charged an exit fee by your current lender for closing up the mortgage earlier.
* A possibility of losing your home. As a secured type of debt, re-mortgaging can cause you to lose your home if you become unable to keep up with the payments.
* Longer processing period. A re-mortgage application can take a couple of weeks or more to complete. You must have patience and commitment to see it through to the end.
Getting re-mortgaging advice from the experts
Re-mortgaging is a huge decision that should be thought about meticulously. There are technicalities and fees involved that may not be revealed to you by the broker. You can benefit from seeking advice from the expert before giving re-mortgaging a go. You would not want to end up wishing that you had not re-mortgaged at all. Call 01332 257 009 to talk to an advisor or visit our website for more details about how we can be of service to you http://www.mortgageadviceservices.co.uk/remortgaging/remortgageProcess.htmLabels: benefits of re-mortgaging, Nottingham mortgage advice, re-mortgage rates, re-mortgaging fees, the re-mortgage process
