A remortgage is essentially a new or additional loan that you take out on your existing property without selling it. Often used at the end of a current mortgage deal in order to save money on monthly repayments by securing a new deal with a lower interest rate. However, a remortgage can also be used to raise additional funds secured against your property as a very cost effective form of lending.
Typical uses of the additional funds released from a remortgage include:
- making improvements to your home
- debt consolidation
- financing a large one off purchase such as a daughter’s wedding
- raising a deposit to purchase an additional property
Whatever the reason, at Key Solutions, we can help to assess whether a remortgage is the right option for your individual circumstances.
There are a number of different ways that additional funds can be raised against your home including, a further advance from your existing lender, unsecured loan or second charge mortgage.
Our team can help you to determine which is the best option for you, and then source a lender and product to meet your needs.
Things to consider when remortgaging
Whilst your circumstances are going to differ person to person, and it pays to discuss things with a mortgage adviser, there are some general things to consider before applying for a remortgage:
- If your current lender has locked you in with substantial early repayment charges or exit fees, these may outweigh the savings made when remortgaging and a second-charge loan may be more cost effective.
- Your financial circumstances may have changed during the period since you took out your original mortgage and you may no longer be able to obtain the level of borrowing you require.
- There may be additional fees and charges that you will need to pay in relation to arranging a remortgage.
- Your current mortgage, whilst not on the cheapest rate, might have additional benefits that you need to consider such as the ability to make flexible payments or take payment holidays.
Making it easier to source a remortgage
If you are considering moving your mortgage to a new lender either to secure a better rate or raise additional funds our team of specialist mortgage advisers can help.
Get in touch for independent advice on whether a remortgage is possible and the most suitable product for your circumstances. Just give us a call on 0800 138 5856 or fill out a contact form and let us do the rest.
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