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Posted on 21 February 2022

What is a remortgage and should I get one?

What is a remortgage and should I get one? A remortgage is where you take out…

What is a remortgage? Should I get one?

What is a remortgage and should I get one?

A remortgage is where you take out a new mortgage on a property you already own in order to replace your existing mortgage with a new rate or,  borrow money against your property.

How does a remortgage work?

Each mortgage has a limit on how much you can borrow from the lender depending on the value of the property. When you a remortgage, the lower loan-to-value you need, the more lenders and cheaper deals you will have available.

Should I remortgage?

The higher your mortgage debt, the more expensive it gets so if you identify a much lower rate through a different lender, it will save you money! Alongside this, there are multiple reasons why you may want to re-mortgage.  We have listed some below to help guide you. You may want to re-mortgage if:

  • The value of your home has increased
  • There is a better rate available with a new lender
  • You’d like to pay off your mortgage quicker but your lender won’t let you
  • Borrowing more from your lender is not an option.

Can I remortgage to pay off debt?

YES! in order to raise funds you are able to remortgage if you have enough equity in your property. Before you are able to do this, however, you will need to speak with your current lender in order to understand if you qualify to do so. If not, you may have to switch lenders in order to do so.

If you’re hoping to move home and you’re in need of some assistance, feel free to visit www.exchangetrain.co.uk/blog for more guides, tips and tricks and helpful information.