Advice for Re-Mortgaging
People re-mortgage for a number of reasons. The most common one is for home improvements but sometimes it is to capital raise for other projects or to consolidate debt. Even if you are looking for short term finance it will be better to consider a short term loan rather than use a credit card.
Before you enter into any new mortgage arrangement it is important that you check your monthly income and expenditure to ensure that you are not putting extra strain on your finances.
It is essential that you shop around for the best rates but be careful about sharing your personal information with too many people as you may unwittingly affect your credit rating. By shopping around online you will get a very clear picture of the types of mortgages available and prevailing interest rates.
One thing that you should always do is to discuss your requirements with your existing lender. If you have never missed a payment and have other products and services from them then they may well give you a preferential deal. This may be an interest rate not publicly advertised or a stretch on the amount they would advance based on your income.
If you do decide to re-mortgage with your current lender ensure that there are no adverse amendments to the initial mortgage deed that they hold.
One word of caution though when approaching those banks that offer incredibly low mortgage rates. They tend to only make these available to people where other products and services can be sold or where you are perceived to be a blue chip customer. So do not always expect to be offered the rate advertised.
The above are just a few tips to consider when looking to re-arranging your mortgage finance. Bear in mind though that there may well be occasions when you would be better off keeping your mortgage with your existing lender and topping up via a secured loan with another lender.