How Does Re Mortgaging Work?

Re mortgaging is where you take out a new mortgage with a new lender on a property you already own and have a mortgage on. The new mortgage takes the place of the mortgage you originally had on the property.

When Is It Suitable?

Re mortgaging may be suitable for you if:

• The introductory deal on your current mortgage is due to end soon and you’d like to avoid being transferred onto your lender’s SVR (standard variable rate)
• You want to consolidate credit commitments ( please be aware that by adding unsecured credit to a mortgage may be unsuitable and you may more interest by adding this onto your mortgage account over the term.
• You need money to fund home improvements
• You have a large expense coming up - like a wedding or school fees, or you want to help your children with a deposit, etc.

Remortgaging may be unsuitable for you if:

• You need a small mortgage below £25,000
• You need to borrow a very high percentage of your property’s value
• You took out your current mortgage very recently
• Your mortgage has ERCs (early repayment charges)

Think carefully before securing other debts against your home