A re-mortgage is the process of paying off one mortgage your current mortgage with the proceeds from a new mortgage using the same property as security.
Common misconceptions with remortgages, which clients ask me about on a daily basis.
You only remortgage if you need to borrow extra money on top of your current mortgage balance.
Answer – no you can remortgage to a more competitive rate keeping the existing mortgage balance and save money each month, or shorten or extend the lending term.
You can only remortgage your property so many times.
Answer – There is no limit to the amount of remortgages as long as the financial numbers stack up with the property and the clients demands needs match the new mortgage product.
You can only remortgage when your current mortgage deal is coming to the end of its discounted or fixed period.
Answer – No you can remortgage at any point however there may be penalties for leaving the lender whilst you are tied in to the mortgage product.
“I will add that really clients need to speak to their mortgage broker months before their current product deal ends so the wheels can be set in motion.” “ So they can change the mortgage product as the old one comes to an end, to avoid paying the lenders standard variable rate, which could be hundreds of pounds more per month.”
If you would like a free chat about your circumstances and a professional recommendation on a remortgage to suit your needs, call
Paul on 01902 213201