Remortgage loan

Remortgage loan - Do you think your monthly payments against the mortgage is affecting your financial position?

While the mortgage is definitely a unique financing program, it does hamper the borrower with the obligation of making monthly repayments, that lasts for the entire term of the mortgage loan. Thus, to make it more easier for the borrowers to make it all more easier to make repayments here comes the interesting concept of remortgaging. Remortgage loans involve switching your current mortgage to a new mortgage, arranged either with your existing lender or with a new lender.

As a current homeowner you may want to consider taking remortgage loans for various different reasons, which includes:

  • To save money
  • To raise money
  • To avoid moving home
  • To consolidate your debts
  • To make home improvements

Most of the time remortgage is cost effective as with the same you don’t have to buy a new home, all you have to do is switching the lender if you choose not to remortgage with the existing lender. Also, it is simple as the deeds of the property are already registered in your name.

There are various different types of Remortgage loans that you may consider as per your requirement.

  • Fixed Rate Mortgage - It comes with a fixed rate of interest and consistent monthly payments until the life of the loan.
  • Standard Variable Rate Mortgage - The types of mortgage works according to the base rate of the Bank of England. SVRs are generally a couple of percentage points or so higher than the base rate.
  • Tracker Mortgage - The type of mortgage works similar to SVR mortgage but the interest rate is reflected by the bank of England rate base.
  • Discount Mortgage - The discounted mortgage usually offers you the lower interest rate for the first year or two and then revert to the rate as per the current market trend. It is also linked to SVR or to the tracker rate mortgage, where interest rate fluctuates based on the Bank of England base rate.

Apart from that, there are other remortgage options too that you may consider depending on your circumstances.