Freddy Finance
A Remortgage – How & Why?
The first decision you need to make is whether you are going to do the leg work to find your remortgage or to let someone else do it for you. You can check out the best remortgage deals available to you, by checking out a remortgage through your bank or present lender, visiting your building society or completing numerous forms on the internet. The alternative is to get a mortgage or Remortgage broker to do the work for you. This can be done over the telephone; in person or by completing just one form on their website and let them call you. A good broker will do all the work for you including completing the paperwork, collecting documentation, dealing with the lender, coordinating the solicitor and ensuring the funds meet your bank account on time.
It’s a reality of financial services today that you have to pay fees and remortgaging is no different. This is whether you go direct to the lender; do the work yourself or go through a broker. Typically there are fees for the application, the valuation of your property, the solicitor’s services, the remortgage product and the broker’s services. Either going direct or via a broker, these fees have to be paid, it is important that these are explained to you before proceeding with the application. When using a broker, they should try and find you the product or deal that best suits your personal situation.
You can remortgage for any legal reason, illegal reasons can be known as money laundering. Legal reasons can include a swapping lenders at the end of a fixed term (finding a new lender with a better product, or interest rate); Home improvements (adding value to your home); Debt consolidation utilising the equity in your property to consolidate debt into one monthly payment; a dream wedding; a new family car or even a holiday of a lifetime.
Remember the moneys gained from your remortgage have to pay off your existing lender first; any secured loans on your property and if consolidating debt, pay your unsecure debt including loads and credit/store cards.
Sometimes a remortgage has to take place for less happy circumstance like a divorce or separation, where to two parties on the mortgage part company and one of the parties takes over the mortgage and may have to pay off the other. A broker will be able to help with this, along with their legal team or solicitor.
Another option is secured loans against your property, also known as a second charge.
