Re-mortgaging is a big topic in the UK – people want to leverage existing mortgages to get a new mortgage. The problem, though, is that there isn’t enough information out there to help people make the right decisions.
Is it advisable to get mortgage advice from your lender? Probably not; they may have some vested interest and might tell you things that skew you in their favor. This short article explains some of the most commonly asked mortgage questions.
Can anyone re-mortgage?
Re-mortgaging is for people who already have an existing mortgage. That
said, you must look at your financial circumstances very carefully before you
make the leap. Although in many cases people who re-mortgage make money, there
are instances when you can lose big.
Why should I remortgage?
The most common reason for remortgaging is to make money. Many homeowners
take loans when they have almost paid off the existing one so that they can do
repairs on their property. You can also remortgage to support other financial
needs. The important thing is to make sure that you are able to make your loan
payments every month.
Does my credit rating matter?
As a matter of fact is does. The government introduced stricter rules for
mortgage lenders to avoid the problems that were experienced in the 2000’s that
caused the housing bubble. You need to have a good credit score if you want to
get a mortgage on an existing one.
Are there any fees associated with re-mortgaging?
There are some remortgages that are free and there are some that you have
to pay for. If you go for the free kind you should be aware that you may incur
costs in valuation and application fees.
Do I need a solicitor?
Unless you are well versed with property law it is advisable to have a
lawyer look over any documents before you sign them.
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