Remortgage

Remortgage is a process of paying off one mortgage with the proceeds from a new mortgage using the same property as security. In other words it is the replacement of an existing mortgage with a new one. Sometimes it makes sense to move your mortgage rather than move house. Remortgage can realize the equity build up in a property and use it to finance further investment.

Applying for a remortgage is much the same as applying for the initial home loan.

Before you start to look for a better deal it is important that you already have a good idea of what property is worth. Most of the lenders provide on-line mortgage calculators that will enable you to enter a few details, so they can give you an up-to-date quotation for the sort of mortgage they might be prepared to give you on the basis of your earnings and their current rates. Many lending institutions have remortgage packages incentives by waiving valuation and arrangement fees.



Nowadays, many of them have departments specially set up to deal with current customers who are thinking of transferring to another lender, so that they can offer these customers special deals on a case-by-case basis. The benefit of staying with your current lender is that you hardly have to do anything, as you need to draw up a new contract and sign it.



With many thousands of mortgage options available, you can always take help from independent financial adviser (IFA). They help you in choosing best mortgage options available. There are websites that offer online analysis of brokers and even if their information is not up to the mark, they sure help you sort out a few things for starters. Always make sure that the mortgage broker has valid brokerage licenses.



Benefits of Remortgage



It can help you to make use of your home equity and get better deals at cheaper rates.
You can take full advantage of the current trends especially when the markets are booming and interest fall off to all time lows.
You can always go for a flexible and better plan through remortgaging, incase you are dissatisfied with your present lender.
By going for a lower interest rate you can save up on the money you are presently paying to your mortgage lender.
You can replace credit card bills, personal loans and other loans with one lower interest rate mortgage and spread lower payments over a longer period.
A remortgage allows you to consolidate existing loans to one manageable monthly payment or raise money to buy a new car or home improvements.