A Beginner’s Guide to Remortgaging
Around a third of all home loans made in the UK are actually remortgages. Remortgaging to another deal could potentially save you a large amount of cash, up to hundreds and even thousands of pounds annually, so it is a good idea to review your mortgage regularly to see if there are better deals elsewhere.
But, what exactly is remortgaging?
Remortgaging involves changing your existing mortgage to an entirely new deal without moving out of your home. You do so by paying off the original mortgage with the proceeds of a new one, using the same property as financial security.
The reasons people apply for a remortgage:
If you have had a mortgage deal for years, you may be uncertain about the potential benefits of remortgaging. In most cases, a remortgage is done to reduce current interest rates or unlock extra funds for home improvement expenses. Others do it to consolidate their debts or raise a cash lump sum by releasing equity from their homes. Whatever the reason for applying for a deal, remortgaging ensures you one thing: a financial boost.
What to do before applying for a remortgage:
Evaluate Your Own Financial Status
A remortgage of your home may be cheaper than a buy-to-let mortgage; nonetheless, it is still important to consider your income projections before remortgaging to buy a second property. Check for any other potential major household expenses, and make sure you can keep up with the remortgage payments to avoid incurring additional fees and penalties.
What many people forget is that before finally securing a house, a lot of documentation and negotiations are involved. It is helpful to browse through property market resources and understand local legal requirements before switching mortgage deals.
Read the Contract Thoroughly
It is never enough to just scan through a contract once before signing it. Do it twice, or three times if you can. You might miss unfavourable clauses or articles that avoid agreements and requests made with the seller. To avoid discrepancies in the agreement between you and the previous owner, go through your contract thoroughly and ask for professional advice to make sure the terms are clearly understood and meet all requirements.
Find Your Remortgage Solicitor With Us
Conveyancing Supermarket is your online source for all things conveyancing and remortgage. We have a network of solicitors who know what our clients need when it comes to applying for a remortgage. You can compare remortgage conveyancing quotes and find the best one on the market. Contacting one of our conveyancers before settling on a remortgage loan or signing a contract will give peace of mind that you are closing on a sound deal.
For assistance on conveyancing and other requirements that you might need help with, get in touch with a remortgage solicitor with Conveyancing Supermarket today.