Remortgage Advice
Remortgages can be a cheap alternative to secured loans especially if you have spare equity in your home and your mortgage terms give you the flexibilty.
Here is a useful remortgage guide for your reference. Use the information to help you save money.
Releasing Your Equity
A remortgage is a finance agreement which means that you can release the equity in your home. Referring back to our previous example - your house is valued at £100,000 and you have already repaid £60,000. This means you still have £40,000 left to pay (this is the equity in your home). However, there are many different types of mortgage on offer from a multitude of lenders and you may decide that what you thought was your best mortgage option when you bought the house no longer suits your own circumstances and that there are cheaper mortgages available.
Changing The Terms Of Your Existing Mortgage
A remortgage might be the best solution instead of a loan (please speak to us personally for guidance before making a decision). Remortgaging allows you to change the terms of your existing mortgage to another more suitable mortgage proposition, whether that's with the same company who lent you the money in the first place or another mortgage provider, that is up to you. Sometimes, however, you may incur additional costs if there are penalties attached with your original lender for paying off your mortgage early so any cost should also be factored into your calculations when you consider any savings you may be able to make by remortgaging or raising your required finance through a loan.
Are You Happy With Your Mortgage?
You may decide that you're happy with your existing mortgage but require a further advance of money from your existing provider. This is possible and can suit all parties. For the lender, a further advance on top of the mortgage is easy to arrange and is a cost-effective transaction whilst for the borrower, it has the convenience of keeping all borrowings under one roof. However, if your credit rating has deteriorated since you took out the mortgage, a further advance might not be possible or, if it is, it might come with higher interest rates. You may then wish to speak with us to get further free information about our loan lenders.
Our panel of loan providers is continually changing as we work to provide a wide range of choices for our customers. Different loan options provide different benefits and what is unsuitable for one person may be the perfect solution for another.
A Suitable Alternative
Remortgages can often be a suitable alternative to the secured loan as you are borrowing money that you already have in your home in terms of its equity. Just like with loans, competition between mortgage lenders is fierce so there are savings out there to be made so looking at remortgaging periodically whenever you carry out a review of your finances makes for good advice as you could be saving yourself a considerable sum of money.
To find out whether a remortgage or loan is your most suitable option, please click here to make an enquiry.