Everything You Need to Know Before You Remortgage

A re mortgage put in simple terms is the transfer of a mortgage, to one lender from another. If you need to raise capital quickly or want all your debts combining into one monthly repayment, a re mortgage may well be worth considering. If you are looking for a better rate than the one you currently have, you should also consider re mortgaging.

Many people are stuck with the same rate they had when they took out their mortgage, unaware they can shop around for a better deal.  If you have a poor credit history, such as County Court Judgments or bankruptcy, you can try applying for a sub-prime mortgage. Because you are classed as being a higher default risk, the interest rate on your re mortgage is likely to be much higher than a standard mortgage.

However, a sub-prime mortgage encourages people to improve their credit record by lowering the interest rate following a set period of time and timely repayments. Due to the economic climate, all mortgages that let the lender borrow more than the property was worth have been abolished. This was particularly bad news for first time buyers who wanted a mortgage and a little extra cash for home improvements.

It was also bad news for people wanting to re mortgage who had little equity in their home. High-street bank The Halifax offer competitive re mortgage deals as well as a free session with an in branch mortgage advisor. People wishing to re mortgage with the Halifax from a different lender can expect to enjoy interest rates as low as 4.1% APR, subject to status.

Barclays Bank offer a Great Escape mortgage, designed especially for people who wish to re mortgage. Their interest rates are subject to individual status and start at around 4.19%. They also offer to repay 3% of your balance until 2013. If you are struggling to decide what to do about getting a re mortgage, you can always visit a mortgage broker. Working independently, it is their job to advise you as well as find you a mortgage best suited to your needs.

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