Mortgages and Remortgages UK,
USA, Canada
Many people consider remortgages
whenever they need to borrow a fixed amount of money, for
whatever reason. Aside from this, a remortgage could also
be the answer you are looking for if you think that your existing
mortgage is costing too much money. Significant long-term
savings could potentially be made with a good remortgage.
For example, if your current lender issued a mortgage with
a low introductory interest rate, a remortgage is a possible
option after expiration of the introductory period in order
to maintain low interest rates. A further common reason for
obtaining a remortgage is debt consolidation, provided that
the remortgage value is higher than the outstanding balance
on the borrower’s existing mortgage.
If you have already repaid
a significant amount of your existing mortgage, you may wish
to instead consider an equity release plan, of which two types
are available:
• The Home Reversion
Plan - this requires that you sell a proportion of your home;
the loan is redeemed upon confirmation of this sale. The interest
that the lenders receive takes the form of the increase in
the value of your property.
• The Equity Release Mortgage Plan - this plan works
in a similar way to a standard mortgage, however it has one
big difference in that the interest does not have to be paid
monthly. You can borrow an agreed sum of money against your
home, and not pay any interest until the property is sold.
It is at this point the lender redeems the loan, plus any
interest that has been accrued.
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