Remortgage UK
Remortgage - online advice...

Remortgage? If you think that you're paying too much for your mortgage, then you probably are. However, you're not alone. In fact, you're in good company: an estimated 80% of UK property owners are paying too much on their home loan.

Today's financial services market is fiercely competitive and you won't have to do much shopping around to find loan provider who's prepared to offer you a substantially better deal. Switching loan providers has never been easier, and with some of the lowest interest rates in UK economic history, there's never been a better time to think about remortgaging.

Most people choose to remortgage to lower their monthly repayments, but it also allows you to release equity built up on your property. If you consider how house prices have shot up in recent years, then this could be a hefty lump sum. It might even be enough for you to take your next step on the property ladder.

Many people don't understand that you can remortgage without buying a new property, or they are put off by memories of the hoops they had to jump through when they bought their first home. In truth, re-mortgaging is remarkably straight forward and 'hassle-free' process. However, there are some important financial considerations to bear in mind:

Be prepared to budget for: a current property evaluation, solicitors' fees and a loan application charge. The overall cost of these expenses should be less than £1000. Some loan providers will cover the fees by offering marginally higher interest rates.

Borrowers can also find themselves bound to their mortgage by 'redemption penalties', which must be cleared before they can move their loan to a different bank or building society. Redemption penalties are common with discounted rate and capped rate mortgages and are a way of preventing borrowers form taking advantage of the 'discounted' rate, then swiftly transferring their loan elsewhere.

On a practical level this means that anyone thinking about re-mortgaging must weigh up the overall costs versus the benefits. The chances are that the benefits will greatly outweigh the costs, but it may be worth waiting for the redemption penalties to expire.

If you are in any doubt about whether it's in your financial interests to remortgage your property speak to an independent financial advisor or an independent mortgage broker.

 

 

 

 

 

 

© AskFinancially.com 2008

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