Remortgage
Description
The process of remortgaging is transferring your outstanding mortgage
debt from your existing loan to a new loan. A remortgage may allow you to save
money by paying a lower interest rate on your debt, or it may help release funds
to pay off other existing debts that carry higher interest rates. This may serve
to reduce your monthly outgoings.
Eligibility
You will need be a home owner with equity in your home. You will
have the financial ability to pay any new mortgage you take on.
Advantages
- If you are looking to borrow substantial sums to pay off creditors,
you may find that the cheapest way of doing so is to extend your mortgage.
Disadvantages
- You will be paying interest against borrowing for a much longer period than
a standard personal loan and it could end up costing you more overall because
of that.
- There may be early repayment charges and reservation fees demanded by your old
and new lenders.
- You may face penalties as well as arrangement fees.
