The truth is that you can remortgage as often as you like. So why don’t people remortgage more than once if this is a quick way to raise cash: Because there are several disadvantages of multiple remortgages:
• Lenders look at your credit history when they are deciding whether or not they should lend you money. The more times you remortgage the more times you are likely to get a lender to work with you because you will be in so much debt. Not only will property lenders refuse to work with you, you may not be able to get credit from other lenders for things such as your credit card, your car and so on. If you want to have a healthy credit report you should not remortgage your property more than once.
• Each time you remortgage your home you reduce its equity value – remember, each time you take out a loan the outstanding mortgage amount has to be deducted from the property’s market value. Remortgaging more than once means that you will end up with negative equity, which means, again, that lenders will not touch you.
• The more you remortgage the higher your debt becomes. That means that in the end you may not be able to pay the debt and you will have to file for bankruptcy.
• The value of your property declines over the years and eventually, you will not be able to get any loans on it because of its low value.
So what are your options if you have already remortgaged?
The best thing to do is to talk to a Nottingham re-mortgage advice service such as Mortgage Advice Services. They will look at your particular set of circumstances and advice you on how to proceed. MAS tailors all their solutions to the clients needs so you can be sure that you are getting the right kind of help. Find out more on http://www.mortgageadviceservices.co.uk/