How To Remortgage Your Property

What is a remortgage and how do you obtain one for your property?

Remortgaging is the term given to ending, or paying off, your existing mortgage and replacing it with another, often larger, mortgage.

Why remortgage? There are many reasons why you may wish to remortgage your property. These include:

* To release some equity to fund home improvements, university fees etc;
* To obtain a more favourable mortgage deal;
* To create a reduction in your monthly outgoings;
* To consolidate your debts;
* To enable you to pay off your mortgage at an earlier date than planned.

What is involved in the process of remortgaging your property?

Essentially, when you remortgaging your property, you are taking out one loan to pay off another. It is always important, therefore, that you shop around first to ensure that you get the best deal and the best rates available to you. It is worth checking with your existing mortgage company to see whether they are able to match any mortgage deal that you have found elsewhere but if they cannot then you should proceed with your application for your new mortgage and prepare to arrange for your existing mortgage to be paid off. It would be highly advisable to speak to an experienced independent remortgage broker who will advise you on the process of remortgaging and is legally required to consider and advise you of the best deals and products for you that are currently on the market.

How much will it cost to remortgage my home?

You should make sure you are fully aware of the costs involved in the remortgage of your property. Your existing mortgage company may charge a penalty (often hefty) for releasing you from the mortgage earlier than planned and there will be other fees to consider. These include legal fees, the cost of having your house valued and surveyed and the application fee for the new mortgage.

How long will it take to arrange the remortgage of my property? The process is, in theory, relatively simple and it should take no longer than a couple of months to release yourself from your existing mortgage and enter into the new one.

As with any financial transaction, it is important that you go into the remortgaging process with your eyes open and fully aware of all of the implications of carrying out the procedure. Ensure you have considered all of your options before taking steps to remortgage your property.

Copyright (c) 2010 Robert Gray

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