Probably one of the biggest financial commitments we will make in our life will be a mortgage, therefore is it a sensible thing to do to search out new deals that could save you large amounts each year.
What does remortgaging mean and what are the benefits of doing this?
This is when you take out a new mortgage on a property you already own
Many people remortgage their homes for various reasons, including:
- Paying off debts – this will allow you to consolidate all your existing debts and is very beneficial to do so if the interest rate is lower on your mortgage then your or loans etc.
- Raising money – if your house value has risen or you are earning more money now in comparison to when you first took out your mortgage then you maybe able to increase your mortgage.
- Saving money – if your paying a standard variable rate (SVR) to your lender it is probable that they would be able to offer a better rate and flexibility on other products they have. If your lender doesn’t offer this you may want to think about changing your mortgage to another lender. This can still be financially beneficial even if you are required to pay the early repayment charges from your current lender.
However remortgaging isn’t for everyone and it is important to consider your personal situation before remortgaging, things to consider are:
- Credit rating – if you have poor credit then you may not be eligible for the best deals.
- If you cannot afford the new monthly repayments you may be subject to losing your home.
- Early repayment charges – as mentioned sometimes it can still be beneficial to pay these charges, but you need to ensure the early repayment charges are not too expensive to ensure it will benefit you.
- The overall cost of your mortgage may increase if you lengthen its term.
What is the remortgaging process?
When gaining contact with you mortgage lender they will advise to instruct a solicitor, after instructing a conveyancing solicitor you have to provide them of your lenders requirements.
Much the same to a mortgage your lender will make an offer to remortgage, your appointed solicitor will then check the title documents by obtaining copies from the Land Registry.
Similar to when you brought your property your solicitor will now run various searches on the property including, mining privileges, access rights over the property, and other issue that can affect the value of the property.
Once the mortgage deeds are draw up, agreed and signed your solicitor will then register the mortgage with the Land Registry.
I am interested in remortgaging my property, how do I do this?
As previously stated it is very important to fully consider your personal situation before remortgaging and it can be very beneficial to seek legal advice at this stage.
Contact us today and we can provide you with the guidance and help you need, ensuing all legalities are dealt with smoothly and as quickly as possible.