When you take out a mortgage, you are undoubtedly committing yourself to one of the biggest legal & financial investments of your life.
A mortgage is a loan you take out when wanting to buy a property or land. This mortgage is then ‘tied’ to your home until you pay it off.
But what happens if for some reason you decide your current mortgage is no longer suitable and you wish to change to another lender or take out a larger or lesser mortgage?
Homeowners are often left feeling confused when the word remortgage arises with questions like ‘how does it work?’ ‘will it save me money or cost me?’ ‘will it affect my interest rate?’ or “will it impact my credit score or chances of borrowing in the future?”. If you’re unsure about remortgaging we’ve busted some myths and answered some questions below.
Remember, you can always contact us if you have any further questions.
Why do people Remortgage?
Remortgaging happens when the owner of a property wants to change from one lender to another or move to a different deal with the existing mortgage lender. Many people are unhappy with their current mortgage rate and seeking an opportunity to save money or it may be that you are moving house and wish to get a larger property by remortgaging and getting a larger mortgage. You may borrow this larger value against the value of your house to pay off debts or use the excess equity in other ways.
When we first apply for mortgages, you’ll often have an introductory rate which will end after a certain period of time. This can be another big trigger for people seeking out opportunities to remortgage.
How will remortgaging save me money?
It is one of our largest outgoings monthly, so if remortgaging will be a money saving move then its likely of interest to you. It is a very personal matter and speaking to a property lawyer will help you build a plan and evaluate if remortgaging is a viable and worthwhile option for you. Changing your lender if done correctly can lead to a reduction in the rate of interest paid and save you a substantial amount of money.
Are you ready to talk more about Remortgaging?
If you want to move home or borrow more money to cover other debts or large costs, finding someone to help you with remortgage conveyancing could be a great way to increase your loan at low cost.
PDR Property Lawyers have expert knowledge in the industry with over 10 years’ experience and will always provide fair and impartial advice to benefit you.
Our remortgaging solicitors can help ensure your remortgaging runs smoothly and efficiently, whether you’re looking to benefit from a new rate or want to release some of the equity tied up on your property.
Contact us in confidence today about remortgaging now or fill out our instant quote form today.