There are many pros and cons to remortgaging your residential home. The right financial planning advice could help you find a better loan to meet your needs, but there can be costs associated with making such a switch. Here, we take a look at the advantages and disadvantages of remortgaging your residential home, and remember, Crystal Clear is on hand if you need more personalised advice.
If you choose to remortgage your house or your residential home, there is the potential to save money by changing to a different mortgage product that is more attractive. This may be particularly relevant for you if you have recently finished your period of beneficial interest rates and have been moved on to the Standard Variable Rate (SVR) by your lender. There is the possibility of remortgaging and getting a better variable rate or fixed rate mortgage that will reduce your monthly outgoings.
Another possibility is that you could remortgage your residential home and reduce the current term of your mortgage. This will allow you to pay off the outstanding balance of your loan faster and give you more financial freedom in the longer term.
The Cost Of Remortgaging
There are costs involved in remortgaging, meaning it is not something to consider unless there are genuine benefits to be had. Charges may be applied by both your current and new lender. Your existing lender could charge you for repaying your current mortgage early, whilst your new lender could have set-up costs or apply administrative fees.
You May Not Qualify
It may not be possible to remortgage your residential home and so it is important not to make any firm plans until you have done your research and sought professional advice if you want to be certain that your next move is the right one for you. It is worth remembering that you may find it difficult to remortgage your home if any of the following applies to you:
– You don’t have much equity in your property
– You are nearing retirement age
– The value of your property has decreased
– You have experienced credit problems since you took out your current mortgage
Do I Need A Mortgage Advisor To Remortgage?
You don’t have to have a mortgage advisor to remortgage but advice from financial experts such as Crystal Clear can be worth its weight in gold. Seeking quality mortgage advice can prevent you from wasting money or adversely affecting your credit score, as well as helping you to find the most beneficial mortgage product for you.
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