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R is for Re-mortgage
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Did you know that around a third of all home loans made in the UK are actually remortgages?⠀⠀⠀⠀⠀⠀⠀⠀⠀
So what exactly does REMORTGAGE mean?
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To remortgage is to take out a new mortgage on a property that you already own, either to replace your existing mortgage or to borrow money against your property. You either switch to a new lender or move to a different mortgage deal with your current lender.
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WHY REMORTGAGE?
✅ It can be a good way to find lower interest rates and/or better mortgage terms to suit your financial situation.
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✅ It can give you the option of releasing your property's equity to free up some cash for home improvements etc.
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✅ It offers the flexibility to consolidate all of your debts into one affordable monthly payment.
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WHY NOT REMORTGAGE?
❌ Stretching your mortgage over a longer period of time increases the overall cost of that debt.
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❌ There's the risk of your home being repossessed if you can't keep up with the monthly repayments.
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❌ The fees attached to remortgaging may negate any saving made on securing a deal with lower interest rates.
About this article — written by the Agreed team. We publish honest, hands-on guides on UK property based on what our associates and developer partners are actually doing day-to-day. Spot something out of date or wrong? Tell us via the contact page.