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What is re-mortgaging?
Why would I want to re-mortgage?
What are the costs of re-mortgaging?
Re-mortgaging is when you transfer your outstanding mortgage debt from your current loan to a new one without moving house. Top
The two main motivations for re-mortgaging your home is either to obtain a better rate or take advantage of the increased value of your house and use that money for whatever reason you want.
Obtaining a better mortgage rate is a tempting offer to many home owners and moving your mortgage could be worth is but only so long as the cost of moving your mortgage is offset by the savings you make.
If you are planning any renovations of your house, such as fitting a new kitchen or bathroom, than is makes sense to consider re-mortgaging to pay for the build as you are adding to the value of the house.
If you have shorter term debts, such as credit cards, then you might want to consider re-mortgaging to pay them off. Short term debts tend to have a much higher interest rate and borrowing against the value of your home might be a great way to eliminate those debts early on. Top
Re-mortgaging doesn’t come without costs that effect how worth while it is. You will have to pay your lender a ‘booking’ fee, you probably have to pay to have your house surveyed again and you will have to pay solicitor fees. If your house has increased in value and you are borrowing a larger amount than you might be subject to a higher lending charge. Top
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