The Remortgaging Process In A Nutshell

Many mortgage resources talk about remortgaging. But what is remortgaging? This term is oftentimes used alternatively with refinancing. The fact is that remortgaging is basically similar to refinancing. If you are a mortgagor, you must have heard about remortgaging. This is a common term in the mortgage industry but only a few people really know the remortgage process.

There are instances when mortgage brokers will recommend remortgaging. This is because there are cases wherein remortgaging is a good option for mortgagors. When you speak of remortgage, it basically means paying off your existing mortgage with a new mortgage. Remortgaging is an option for mortgagors and not for first time home buyers.

With remortgaging, the same property is used to secure the loan. It is the decision of the mortgagor to move the mortgage from one lender to another. Remortgaging is often viewed as the solution to cut down on monthly repayments.

Deciding On A Remortgage

Deciding on a remortgage is a case to case basis. While it may work for a lot of mortgagors, there are cases when it isn’t a wise option. It is best that you get good remortgaging advice from credible mortgage brokers before deciding to remortgage. There are also obvious cases wherein remortgaging is a wise financial move. For instance, when the value of the home or the property has significantly increased, you can get a higher loan with better interest rates using the property as the collateral.

The Remortgaging Process

Prior to remortgaging, there are some factors that you should think about. A good start would be to look for mortgage experts or mortgage brokers who can help you out with the remortgage process. Don’t get yourself in the remortgaging world if you don’t really need to.

The remortgaging process is simple. The mortgage lender will first have to identify if you are qualified for a remortgage. Your property’s value will be evaluated. Generally lenders are looking for at least 10% equity in the property. Your income will also be checked to gauge whether you are capable of repaying the loan.

The property will be surveyed to determine its actual value. The result of the survey will also determine the amount that you will be allowed to borrow. Basically, this is how remortgaging works. With the help of a good mortgage broker or specialist, the whole remortgage process can take at least 6 weeks to complete.

About the Author

Irish Mortgage Brokers (IMB) helps mortgagors and first time home buyers get the best mortgage deals. They also offer expert advices on the various mortgage options available for mortgagors. See Irish Mortgage Brokers for services and information about mortgage, refinancing and remortgaging.