UK Property Guide

Simply, a remortgage is the repayment of your existing mortgage with another mortgage of a similar or increased amount from another lender (mortgagee).

With rising property values and a stable employment market obtaining an additional loan to improve your property or for other expenditure provided the increased loan is at least £10,000 can be achieved by remortgaging your property. Even if you do not wish to increase your borrowings you may still wish to remortgage to take advantage of another lenders "special deals" on interest rates or switch to a more flexible type of mortgage.

Mortgage rates can be based on variable rate, discount rate and fixed rates. By shopping around you could change your mortgage so that it is more flexible where overpayments can be made to repay the loan earlier than expected and therefore save interest costs. Current Account mortgages offer a high degree or flexibility with "temporary" repayment of capital allowed which can then be redrawn within certain limits. This is a highly efficient use of surplus funds as it is unlikely that you will find an instant access deposit a/c which pays (even before taxation) an interest rate in excess of most lenders standard variable rate.

<< Sellers Guide