Below are a selection of the questions that frequently crop up about remortgaging: –

When you remortgage, you can use the money however you like. Lenders usually don’t mind because the funds are secured against your home.

However, you need to be mindful that whatever you choose to do with the money could impact your financial future.

Remortgaging follows many of the same criteria as traditional mortgages therefore you could remortgage up until retirement age. If you are adding years onto your mortgage repayments you should look into the financial impact this could have on you.

It is possible in some cases to borrow past retirement age, however you need to look into if this being viable financially for you.

You can save money when remortgaging by switching to the best rate available. This would save you money in comparison to your existing lender’s rate.

On average remortgaging takes approximately 5-6 weeks.

Adding £10,000 to a mortgage at 3% over 20 years would increase your monthly payments by £55.
If you took out a personal loan for £10,000 – the monthly repayment would be £186 assuming typical rate of 4.5% over five years.

While the monthly repayment is clearly much less, the number of years you would be paying it back for is 4 times longer.

Typically, there are three ways to reduce monthly payments:

  1. Switch to a mortgage with a better rate
  2. Increase the number of years that your mortgage is repaid over
  3. Switch to an interest only mortgage

Remortgaging for pay off debt is quite commonplace. In fact is is one of the cheapest options to consolidate debt.

The process is simple, you total all your debts and remortgage your property for the additional sum of the debt.

You then pay off the debt and just make one monthly mortgage payment.

We trust that the above is of assistance but if you have any other specific questions in respect of remortgaging we will happily arrange for a specialist to answer them for you.

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