Remortgages - A Better Mortgage Deal?
A remortgage is simply a loan taken out on a property you already have a mortgage on, replacing the original mortgage. It is usually taken out to save money by getting a better deal, often when a fixed rate deal on the current mortgage has come to an end.
A remortgage can also be used to free up equity in a home, by borrowing a larger amount than is currently owed, although in today's troubled housing market this is perhaps not such a good idea, and most lenders will be reluctant to advance much more than, say, 80% of a property's current value.
Switch Lenders?
Many of the best remortgage deals are those offered to a people switching from one lender to another, but you might well be able to get a good deal from your current lender if you have a good repayment record and have come to the end of an introductory deal. This route is usually simpler than switching providers, with less paperwork, although all remortgages will involve paying setup and maybe exit fees - make sure you take account of these when deciding which deal to go for.
Site is for information only and does not constitute financial advice. E&OE.
Consult a mortgage advisor before taking any decisions.
