Remortgaging is the procedure of reimbursing a current home loan obligation with another home loan. This is ordinarily done to spare cash with a lower loan fee, or to raise cash by acquiring against value.

What are the reasons behind remortgage?

There is numerous reason behind why an individual sign-up for remortgaging. The two most common reasons are -

  • To spare cash - keeping in mind the end goal to a lower month to month reimbursements or benefits from lower loan costs. The strange but true fact is that more than fifty percent of all borrowers in the UK are presently paying more than they actually should be on their home loans.
  • To raise cash - to discharge a percentage of the value in your home. In any case, there is additionally the likelihood of doing this with your present home loan bank, with the additional advantage of maintaining a strategic distance from any penalty charges that you may have to face otherwise in case you change to another moneylender.

When is the right time to remortgage?

At the point when your current deal comes to an end and you realize that you will be making much higher reimbursements. This is when you should be looking for another offer; right before your earlier deal is close to ending. Remortgaging at this time ensures that your next deal runs smooth. Please be advised that many companies do charge a fee for winding your existing mortgage before time, thus, before closing your existing mortgage, please check with your existing mortgage provider.

Why use DM Financial Services for remortgage issues?

  • We are Authorized and Regulated by the FSA
  • We can get you the exclusive deals (normally not available) that you won't find anywhere else.
  • We know how to make your biggest financial commitment, a stress-free and righteous one.
  • We have CeMAP qualified mortgage advisers, who will take care of all your mortgage needs.
  • We are proactive and we tell you everything about your case way before you ask us.
  • We allow you to cancel your mortgage application at any time (up to completion) and that too without any penalty.

What are these - Fixed Rate Mortgage, Tracker Mortgages, and Offset Mortgages?

Fixed rate mortgages – as the name implies, here the interest rate is fixed for a set period of time, which is usually between 2 and 5 years. Should you want to assure yourself about your monthly repayments, fixed rate mortgages are good. The only drawback is – no benefit whatsoever from any potential drop in interest rates.

Tracker mortgages - With a tracker mortgage your mortgage rate is set at a percentage above the Bank of England's base rate or your lender's standard variable rate, so if interest rates go up or down your mortgage repayments will too.

Offset mortgages - Offset mortgage, where your mortgage and savings account are combined, and the money you have in your savings account is counted as a temporary overpayment towards your mortgage, which could save you thousands in interest. As with a standard mortgage, you can get discounted, fixed and tracker offset mortgages.