How do I know if a re-mortgage is the right decision for me?

 
Remortgaging involves switching your mortgage to a different lender or negotiate a better deal with your current lender.  There are several reasons for remortgaging, including saving money, to reduce your monthly repayments or a need for more flexibility. The first step in remortgaging is booking an appointment with a remortgage expert who will offer you advice whether remortgaging is right for you or not.   

The second phase of remortgaging involves cost comparison. There are two things involved in remortgaging; one getting a better deal from your current lender, or two, it may mean changing lenders for a better deal option. Make comparisons on the cost of the two and weigh out which is better.

Completing the paperwork is what comes next.  Here you need to fill the remortgageapplication. You can use the help of a professional to ensure that all details are filled and the application presented in the right manner to avoid delays or disappointments.

The next step is the Approval Process.  This differs with the lenders and the type of product you are applying for.  The initial stage involves the lender assessing your application and performing credit checks.  Once the application gets to the first stage, the lender arranges for the valuing of your property to ensure that it offers enough security for your mortgage.
 
Once the lender is satisfied with the valuation, references, and credit checks, a formal written proposal will be delivered to you. It is crucial to still consider the help of your advisor as your priorities and needs may over time change and hence the need to have a close contact to ensure that the mortgage and protection out in place continually meet your requirements

Reasons for Remortgaging

Release Equity
When you have lived in your home for an extended period, the built asset can become a valuable asset.  By remortgaging, you can release some of the equity to use on other things. The increased amount is added to your current mortgage deal and can be paid off in affordable monthly installments.

Current Product Expiration
Most mortgage loans have a set rate which is valid for a particular period. When this time comes, your mortgage automatically converts to a less desirable product. This offers you with the chance of shopping around for other better deals and other products.

Other reasons why people re-mortgage include getting a better rate, home improvements, and credit consolidation.

Factors to consider when Re-mortgaging

•    What are the penalties for opting out of your current mortgage deal?

•             Fees associated with the new deal 

•    Mortgage broker fees and any legal fee associated with remortgaging

Advantages of remortgaging

•    You can borrow at lower rates

•    You can use your home as collateral
It is advisable to seek re-mortgage advice from a professional before embarking on this decision. Mortgage Advice Services offer you with incredible guidance on this area. You can visit their website https://www.mortgageadviceservices.co.uk/remortgaging/ or contact them for more information.

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