Remortgage: How Does it Work?
Property is often the biggest investment we’ll make in a lifetime and there can be a lot of complicated paperwork involved when buying a home. Many people seek the help of a solicitor when buying property, as they can help you navigate the process and get the best mortgage deal to suit you.
This professional help and advice is even more important if you’re thinking about remortgaging your property; there are many reasons why you might wish to do so, but trying to find the right deal can be a complex procedure. If you’ve been considering whether to remortgage but want to know more about the process, read on for our brief introduction.
Remortgaging is the process of changing the mortgage you currently have on a property you own; either by switching to a new lender, or arranging a new deal with your current mortgage lender. In simple terms, you’re still paying off one mortgage with proceeds from the new one, using the same property as security.
Many people choose to remortgage as it can be an effective way to find lower interest rates or get better mortgage terms, saving you money in the long run.
Reasons why you might want to remortgage
Common reasons to remortgage your home include:
●Your current mortgage is nearly finished
●You’re on a high interest rate
●You want to release some equity from your property
●Your property value has increased
●You want to make higher mortgage overpayments
Many mortgage deals are only available for a limited period, after which they change to the lender’s standard variable rate. These rates are often much higher and can be increased at any time, but choosing to remortgage can potentially save homeowners thousands of pounds every year.
You can compare the best remortgage deals on websites such as Money Saving Expert or Money Supermarket, but it’s vital to do thorough research into the features you need before making a decision. The best deal will often depend on the reasons why you’re remortgaging, but a professional solicitor will be able to help you navigate the market and seek out the best choice for you.
If you’re looking for expert remortgage advice and services, get in touch with the team at Andrew Lee & Co. Our property law team specialises in dealing with mortgage lenders and we’re proud to offer a competitive remortgage service to help you get the best deal. We’ll also take on the legal and administrative work on your behalf, saving you a lot of time, stress and energy, so give us a call today or visit our website to find out more.
