Remortgaging

Remortgaging as the name suggest is replacing of your old or current mortgage with a new one and is generally done to save some money. Remortgaging is possible by replacing your product with a new one from the same lender or by another competitor. However, one should remember that the money that you think may be saving by doing this can be totally eaten up wholly or partially by the charges that is associated to transferring of the loan from one lender to another. There are few tags attached to remortgage which one should know before doing so:

  • The old and the new lenders may demand from you redemption fees or some kind of reservation fees.
  • The ex-lender may charge you with a penalty while the new lender may ask for fee for making arrangements
  • The new lender may want to survey your property and hence ask for surveyor fees and even conveyance fees.

Looking at all this one should definitely do their calculation correctly to make sure that they are benefiting by remortgaging. There are reasons other than potential saving as to why someone would like to remortgage their property. Say for example, some people have taken a mortgage for a term that ends just the day they will retire or continues even after retirement. Now, people who do not have enough saving to continue their living lifestyle with their pension money and even pay their mortgage may think of shortening the length of their mortgage. On the other hand some would like to increase the length of their mortgage and can be done only by remortgaging.

The borrowers regularly check their mortgage and make sure that their current terms of the mortgage suits their current personal conditions and that if remortgaging can help him save some money. It is considered worthwhile by some homeowners and landlords to remortgage their property as it helps them save hundreds and sometimes even thousands of pounds a year. There are various sites available on internet that can help you get better deal and there are sites which can help you compare the mortgage terms from different lenders. Many sites provide mortgage calculator for free so that you can calculate all that you can save by remortgaging. If still you have any confusion there are many agents who can help you get better deal and help you save fortune on your mortgage.