REMORTGAGE FAQ

What is a re mortgage?

A re mortgage is the process by which you change from your current mortgage to a new mortgage. A re mortgage means you are ending your current mortgage scheme and switching to a new scheme. A re mortgage generally involves changing mortgage lenders because most lenders do not generally offer re mortgage schemes to existing customers.

What purpose does a re mortgage serve?

A re mortgage can be used for the purpose of gaining lower interest rates on your mortgage or raising finance through releasing equity.

Releasing equity is a good way of raising additional finance. If your home has positive equity - its market value is greater than the outstanding mortgage - you can increase the size of your mortgage.

Why have re mortgages increased in popularity?

Today, home owners are less likely to show long-term loyalty to their mortgage lender, instead preferring to re mortgage if it results in a better deal. Transferring your mortgage to a new lender or a re mortgage to a new lender can save you money and raise finance.

In addition, homes throughout the UK have increased in value over the years, meaning that many home owners are experiencing positive equity. In their cases, they could elect to re mortgage and release this equity, raising additional finance.

What are the benefits of a re mortgage?

A re mortgage is a great way of saving money, as it is likely to lower your mortgage interest rates. A mortgage is also one of the cheapest forms of loans around, so if you're looking to raise finance, it makes sense to re mortgage your home.

Why should I re mortgage?

A re mortgage should be considered for a variety of reasons:

low interest rates - a re mortgage can allow you to gain a better rate of interest and reduce your monthly mortgage repayments.

debt consolidation - a re mortgage can allow home owners to consolidate their existing debt into one manageable monthly payment. Debt consolidation makes life easier in the short term and makes savings in the long term.

raise finance - a re mortgage allows home owners to raise finance. As its interest rates are among the lowest of all loan types, a re mortgage is an ideal solution to finance issues. Typical reasons for raising finance via re mortgage include home improvements, car finance, arrears and debt issues.

UK Loan Advice, sponsored by UKloan24

This guide to re mortgages is sponsored by UKloan24.

If you are a home owner and are looking to gain lower interest rates or raise finance, UKloan24 can find a re mortgage deal for you.

At UKloan24 adverse credit records, CCJ's, mortgage arrears or debt issues WILL NOT affect your re mortgage application.