Your current mortgage does not seem to be beneficial? You can always switch to a new type of mortgage or a different interest rate with your current mortgage lender. It is your chance to negotiate better interest rates and terms to improve your financial situation.
What is a re-mortgage, and how does it work?
Re-mortgage is the process of taking out a new mortgage to replace the current one. You can switch to another mortgage at any time, but the right way to do it would be at the end of your current mortgage term. That way you can often skip the penalty for breaking your existing mortgage. The most common reasons for taking out a new mortgage are:
- to get lower interest rates
- to raise capital for another property
- to consolidate own debts
- to cover the cost of a refurbishment
Should I take out a new mortgage?
Remortgaging may improve your financial situation. If you don’t think that your current mortgage is beneficial anymore, you should see what better options are out there for you. By switching your current mortgage to a new one with a better interest rate you can often save thousands of pounds. You don’t always have to look far, sometimes you may obtain a better rate from your current lender.
Another reason why it would be a good decision to take out a new mortgage is to raise capital from your existing property – by borrowing up to 80% – 85% (depending on the lender) of the value of your current property. You can use a remortgage to save money by consolidating high-interest debt. When you re-mortgage you can get extra money for home improvements, purchase of a car, or anything else you may need.
If you are not satisfied with your current mortgage and would like to reduce your monthly payments and thus save additional money, please contact us, and we will help you choose the right option suited to your needs.
If you have any questions regarding re-mortgage or our services, please do not hesitate to contact us. Our mortgage advisers will be happy to answer your questions and explain all the details.