A quick guide to remortgaging your house
The process of remortgaging your house means that you will move your mortgage from your current lender to another. There are several reasons for which people turn to this financial move and usually it has to do with the desire for a cheaper mortgage. Other reasons may include the addition of unsecured debts such as credit cards or loans to your mortgage or the need to increase the size of your existing mortgage.
You should think carefully before making a remortgaging decision, especially in a struggling economy, as the property market may be facing falling prices. The tightening of the lending criteria by banks and building societies means that you will probably need a considerable deposit in order to be successful. A big consideration before making a move.
It is obviously not a good idea to use remortgaging as a solution to get out of your other debts. Sometimes, remortgaging may help you temporarily, but you should always consider the long-term consequences. Any money that you add to your mortgage will increase its length and you will be faced with heftier monthly payments. By converting unsecured debts to secured ones (such as your mortgage), you may set yourself on the fast track to losing your home if you don’t make payments on time.
Remortgaging is a good solution for those who are not tempted to overspend once their monthly mortgage payments are lower. In this case, remortgaging your house will be of genuine help, as you will be paying less per month than you were before.