What is a remortgage?
Usually, it replaces an existing mortgage loan secured on a property with a completely new mortgage loan.
Available to existing mortgage holders, a remortgage acts as a replacement mortgage for those whose circumstances, or requirements change during the repayment term. Just to confuse matters, a new loan secured on an un-encumbered property( this is a property that you already own, but you do not currently have a mortgage on ) is also classed as a re-mortgage.
In today’s ultra-competitive finance industry the general public have a much better understanding of the various financial products and services on offer than they used to. Mortgages are no exception. As with financial products such as life insurance or credit cards, mortgage holders have traditionally kept their business with one provider throughout the term of repayment. Now, with so many competitive products available, people can switch to a new mortgage provider and take advantage of lower interest rates, hence lower monthly cost. However, equally as important, more competition has led to the development of re-mortgage products with greater flexibility to fit people’s lifestyles. For example there are now products that allow mortgage overpayments when you can afford it and underpayments or even payment holidays when you can’t!
The really great thing is….you don’t have to work hard to obtain these remortgage products.
People choose to remortgage for a variety of reasons. Here are just a few:
- Existing lender won’t allow a further advance at a competitive rate; or worse, not at all
- To achieve a reduction in monthly servicing costs
- To obtain a more flexible product, such as offset mortgage
- To raise capital for second property purchase, perhaps abroad!
- To consolidate other personal loans and credit commitments usually being charged at much higher rates. This is also called debt consolidation remortgage
- To stay in the home you enjoy. You may need funds to purchase a former equity share in a property. This is called transfer of equity remortgage
So what’s the catch?
Quite simply, choice! With so many products in the market place, doing this yourself would be a very difficult indeed. Many of the remortgage products available do not even appear on the “high street”.
Well, that’s where we come in. We have invested heavily in mortgage sourcing technology, so that our qualified remortgage consultants are always ready to advise you of the best re-mortgage products to suit your needs. Why not remove the hard part of re-mortgaging and let us find the right product for you?