Remortgaging FAQ

Remortgaging is something which allows you to make some savings on your mortgaged property. If you get a better deal, a better rate of interest to make some savings on your monthly installments, you should go for remortgaging. However, before you go for it you should know certain things about remortgaging. Mentioned below are some frequently asked questions (FAQs) to tell you more about remortgaging. If you still have some doubts or questions you can ask agents to clarify the same.

  • What is remortgaging?
    If you plan to transfer your mortgage from one lender to another it is called remortgaging. You do not buy another property but only shift the mortgage from one lender to another for a better deal.
  • Why should I think of remortgaging?
    There are many reasons as to why you can consider about remortgaging your property:

    •  To save some money on the mortgage that you currently having by transferring it to another lender who might be giving the loan at a lower rate of interest.
    • Any equity that you have on your home can be released using remortgaging. The new amount of money can be borrowed at the rate of interest same as that of the mortgage rate. This money can be used for home improvement or for payment of any other debt that you may have.
  • Which is the right time to remortgage?
    The right time to remortgage is when your current mortgage deal is coming to an end or when you are paying variable interest rates and you are getting a lower interest rate than the current one.
  • Can remortgage be done more than once?
    Yes! Anyone can mortgage their property more than once but one should be very careful with the fees and charges involved in remortgaging. The calculation should be done so that you should be getting benefit on remortgaging.
  • Can remortgaging quite often affect the overall credit or the borrower?
    Every time you apply for remortgaging it is registered in your credit file. If you apply for remortgaging quite often then the same is registered and is viewed by the lender every time they see your application. This is a concern if your application is rejected often and may deter a lender from giving you remortgage considering you a risk.

This are a few frequently asked questions and to know more about remortgaging you can ask an agent to visit you.