The main reason that people consider remortgaging is to save money. However, this is not the only reason as to why remortgaging is necessary. There are other considerable reasons for you to move your mortgage loan. Some of the remortgaging reasons include:
Debt Consolidation
For a homeowner having multiple debts and struggling to make the payments, it is often tempting to solicit funds using your home as collateral to clear the debts.It is, however, important for you to carefully think about it before borrowing with your property. This is because you will be putting your property at risk if you do not make the payments.
Release Equity
If in any case you have lived in your home for quite some time, the equity you have built up can become a valuable asset. By remortgaging, you can release some of the equity to use on other things like making improvements on your current home, taking a holiday or furthering your education. The additional amount that you receive is added to your current mortgage deal and can be paid off in monthly installments that are affordable. Often the rate at which the remortgage is paid is lower as compared to the amount you would spend on a credit card or a standard personal loan.
The majority (57%) of remortgagagors in 2016 switched their homeloan to raise capital, according to figures from My Home Move.
The conveyancing specialist said that this suggests homeowners want to release equity ‘cheaply’ for home improvements.
Homeowners across England and Wales, on average, remortgaged for around £15,000 more in 2016 than they did two years ago, borrowing around £181,000 compared to £166,000 in 2014.
Homeowners appear to be taking advantage of the cheaper remortgage deals that are on the market these days. So it would appear that now is a good time to remortgage!
If you have been considering a remortgage but aren't sure of the process, contact Mortgage Advice Services at https://www.mortgageadviceservices.co.uk/remortgaging/ and speak to one of our expert advisors.Labels: benefits of re-mortgaging, equity release, nottingham re-mortgage advice, Nottingham re-mortgage specialists, Nottingham re-mortgages, remortgage advice, remortgage Nottingham, remortgaging
