The Facts About Remortgaging

Remortgaging, or replacing an existing loan with a new one from a different lender, could save a homeowner thousands of dollars a year. Before contacting a remortgage broker, here’s a little remortgage advice to help you decide whether remortaging your home makes sense for you.

Should I contact a remortgage broker?

As a potential remortgagor, you need to establish whether you have anything to gain by moving your mortgage.

There are a number of things that can be achieved by a remortgage - you could cut your rate, release equity that has built up in your property, or move from a variable-rate deal to a fixed rate making it easier to manage your budget.

The most popular reason for seeking remortgage advice is the perception that remortgaging reduces monthly payments. If this is your motivation, you should look at the rate you currently pay and then see if a remortgage broker can offer you a better rate.

If there is a better deal, ask your current lender if it can offer you something similar. It’s possible that you could receive a lower rate.

Remortgaging to release equity

Many people seek out a remortgage broker to release equity from their property. This is an option if your property has increased in value, or you’ve paid off a lot of your mortgage, and it’s simply a matter of borrowing more than your current mortgage debt.

Working with a remortgage broker

In most cases, arranging a remortgage with a remortgage broker is fairly straightforward and it will take the same form as arranging your first home loan.

Your remortgage broker will ask for paperwork to support your application, including proof of your income and debts. They will carry out a valuation - although on a remortgage your surveyor may just drive past the property - and ask for information about your home.Your remortgage broker will organize the searches and handle the switch over from your current lender.

This remortgage advice is intended to help you decide whether or not to remortgage and how to effectively work with a remortgage broker. Just remember to set aside legal costs and time to complete your remortgage. Often times, the money spent up front will more than recoup itself over the life of the remortgage.