In essence, a remortgage means paying off your existing mortgage with a new one. This usually involves taking out a remortgage with a second lender and paying off the mortgage with your original lender.
Although many people are familiar with what a mortgage is, people commonly ask, what does a remortgage mean? Understanding the benfits of what a remortgage can do to organise your finances and access extra funds is our aim.
Alternatively, you could remortgage your property with the same lender if you choose to switch to a new mortgage deal, such as a lower interest rate or longer repayment term.
Now you know what a remortgage is, it’s time to find out what the benefits of a remortgage are why people remortgage their properties…
Free remortgage advice from YesCanDo Money
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What are the benefits of a remortgage?
When you remortgage your property, you have the freedom to increase the amount you’re borrowing. If your current mortgage is £100,000, for example, you might remortgage your property for £150,000. Although £100,000 will go towards paying off the original mortgage, you will have access to an extra £50,000 of funds due to the remortgage.
Remortgage are particularly popular with people who have built up a significant amount of equity in their homes. By remortgaging, you can release equity and access the funds that are currently tied up in the property.
Once your remortgage application has been accepted and the funds are made available, there are very few restrictions on how you can use them. You may want to remortgage your property to fund an extension or renovation, for example. Alternatively, you may choose to release equity in your property via a remortgage to pay for a big event, such as a wedding or a dream holiday.
Another advantage of remortgaging a property is the potential to secure a better deal. If another lender is offering a low fixed term interest rate, for example, you could save money by remortgaging and signing up for a better rate.
With interest rates now being at an all time low – Has there ever been a better time?
How do you remortgage a property?
Remortgaging a property may sound complicated but it’s surprisingly simple. As so many people choose to release equity in this way, high street banks and mortgage providers routinely remortgage properties. In some cases, you can even apply for a remortgage online.
However, choosing to remortgage your home is a major decision, so it shouldn’t be taken lightly. Before you make any changes to your financial situation, it’s advisable to access free mortgage advice. By working with a no-fee mortgage broker, for example, you can find out which lenders are offering the most attractive deals and lowest rates.
With in-depth knowledge of the market and the industry, a mortgage adviser is well-placed to provide all the information you need. As there are so many different lenders and products out there, it can be tricky to manage this research alone. When you contact a free mortgage broker, however, you can access the help you need without incurring any unnecessary costs.
How quickly can you remortgage a property?
The time it takes to remortgage a property depends on the lender you choose and the complexity of your existing finances. In general, it takes around 2-5 weeks to fully complete a remortgage. However, some providers do offer a fast turnaround service.
Furthermore, placing your remortgage with help from a mortgage broker can speed up the application process. Often, delays are caused by applicants submitting the wrong information or completing application forms incorrectly. By working with an experienced mortgage adviser or broker, you can avoid potential delays and submit an accurately formatted application straight away.
How much equity can I release with a remortgage?
The amount of equity you can release via a remortgage will depend on various factors, including the value of your property, your existing mortgage and your income. Generally, there is no upper limit but your remortgage offers will be based on your personal financial situation.
Are there any downsides to remortgaging?
If your existing mortgage includes an early repayment fee, you may need to cover this expense when you remortgage. When you remortgage to release equity, you are increasing the amount you owe, which could be seen as a downside. However, the advantage of releasing much-needed funds often outweighs any potential disadvantages.
When should I remortgage?
Deciding when to remortgage depends on your personal circumstances and your financial status. To access bespoke advice, it’s important to speak to an independent and reputable mortgage advisor.
Can I remortgage?
If you are thinking, when can I remortgage, get in touch and we can advice you on remortgaging your property and releasing equity. Simply call us on 02392 373235 or email us on firstname.lastname@example.org to find out more.
If you are wondering, is there a mortgage broker near me, look now further than YesCanDo Money. We are a whole of market No Fee mortgage broker base near in Havant near Portsmouth, Southsea and Fareham, Hampshire. If you would like further information or advice call 023 9237 3235 or fill in our online form and see if we can help.