Glossary - Remortgage

Remortgaging means moving from your existing mortgage company to a new, usually cheaper product. Re mortgaging can help free equity and create more finance. Nowadays the borrowers opt for a standard variable rate mortgage, but this does not stop them from remortgaging to obtain a lower rate. Money can be saved by remortgaging a home. You may find a mortgage product that would work out alot cheaper for you. There are many reasons why people remortgage their property, if only a few years are left on there mortgage, then fiance can be raised by remortgageing. So long as a property is worth a fair amount more than the mortgage on it then the equity can be used to raise cash and the cash can be used for whatever you wish.

Example: UK Remortgaging
These five steps below may help customers save hundreds of pounds a year on mortgage repayments if remortgaging:

• Step1 - Find a new monthly mortgage with repayment’s that are less than those you already pay. There are a lot of online companies to choose fromor you could choose a mortgage broker.
• Step2 - Redemption penalties on current mortgages are sometimes known as early repayment charges. What would it cost to re mortgage and how much of that will be redemption penalties? There may not be any redemption charges but if there are, over time these can be recouped.
• Step3 - Get in touch with the new mortgage company to see if there are what legal and valuation fees would have to be paid for the remortgage. Over time any cost involved will be recouped.
• Step4 - Get in touch with your present mortgage provider and let them know that a home re mortgage is being sought; they may be able to offer you a better deal to try and make you stay with them. Aa bidding war between the mortgage companies may result in a better deal for the consumer.
• Step5 - Weigh up the costs and compare them to the savings. The re-mortgage could save you money straight away but If costs are involved it could take time to get them back, you should get substantial savings over the years.

Remortgage Tip
Consumers will not see any savings on their money straight away but they will after a short while reap the benefits. Remortgaging a property is a big investment, so always make sure that this is what you want before signing for any property. Once the contracts have been signed and exchanged they become legally binding. Before agreeing to any remortgage ensure that you will be able to meet the repayments as your home would be at risk if you were to get into payment difficulties.

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