ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel
  • »
  • Personal Finance»
  • Mortgages & Loans

How to Remortgage your Home

Updated on August 30, 2013

Remortgage

A remortgage is simply the process of replacing the existing mortgage on your home with a new one. There are a few different reasons that you would want to do this. The biggest reason is to save money, if interest rates have gone down since you took out your original mortgage you can save money remortgaging your home so that you get a lower rate. You may also want to think about a remortgage if you are currently on a variable rate mortgage and you think that rates are going to increase. It is usually a good idea to try to lock in a rate so that before the rates go up.


The other big reason that people will remortgage their homes is to take cash out of their equity. This comes with the obvious downside that you will now be paying your mortgage for a much longer time frame and that also means that you will be paying more in interest. On the positive side however is the fact that a remortgage is one of cheapest loans that you will ever take out. It may be a good idea to remortgage your home instead of taking out a higher interest loan for things like home improvements. It may also be a good idea to use a remortgage to pay off high interest loans like credit card debt.

How to Get the Best Remortgage Deal

If you are going to go to the trouble of remortgaging your home you are going to want to make sure that you get the best remortgage deal possible. Even a fraction of a percentage point difference on your interest rate is going to make a large difference over the term of the deal. There are all kinds of remortgage lenders out there so it pays to shop around and make sure that you are getting the lowest rate you can find. A remortgage broker can be a help here since he will usually be able to find the lenders who offer the lowest rate. A lot of people don't like to use a remortgage broker because of the cost, but if he can get you a lower interest rate it is well worth the expense.


One thing that you have to consider when you are looking at your remortgage options is any fees and penalties that you may have to pay. You can almost guarantee that there will be penalties for repaying your existing mortgage early. There will also be legal fees and probably other fees involved in taking out the remortgage. What seems like the best remortgage deal may not actually be after you have factored in the fees so you need to make sure that you keep that in mind.

Remortgage with Bad Credit

In a lot of cases the people looking to remortgage their homes have poor credit. Often they have run into financial difficulties and are looking to use the equity in their home in order to deal with other financial problems. Usually it is possible to remortgage with bad credit, the reason being that you are putting your home up as collateral. In general lenders think of a bad credit remortgage as a fairly safe loan since the risk of losing your home is a pretty big incentive to make your payments. If you are thinking about a bad credit remortgage you need to be absolutely sure that you are going to be able to pay your bills on time.


A remortgage with bad credit can often be arranged through a traditional lender but this is going to depend on how bad your credit actually is. If you have a real problem with your credit you may have to go to a lender how specializes in adverse credit remortgages. The downside here is that you won't get the best remortgage deal from these lenders and it is going to end up costing you more. However if you need a bad credit remortgage it may be your only option.

A Buy to Let Remortgage

There is another situation in which you may want to take out a remortgage and that is if you are buying property for investment purposes. Usually when you buy a house that you don't intend to live in yourself but rather to let out, you are normally required to pay a fairly high down payment. This seriously limits the ability of property investors to buy more than one house. In order to get around this you can take out a buy to let remortgage.


A buy to let remortgage will allow you to remortgage a property that you already own in order to fund the down payment to purchase another income property. The rules on this type of remortgage are a little bit different than they are for a standard remortgage so you will probably want to talk to a broker who specializes in buy to let remortgages. You will also likely need to talk to a lender who specializes in buy to let remortgages as well. Although they are sometimes offered by mainstream lenders they are still not all that common.

How to Get a Remortgage Quote

If you are going to do a remortgage deal you absolutely have to make sure that you are getting the best deal possible. That means that you need to compare remortgage rates in order to make sure that you aren't paying any more than you need to. Even small differences in interest add up. Fortunately the internet has made it very easy to get remortgage quotes online. There are plenty of websites that you can go to and get remortgage quotes from all kinds of different lenders. One thing that you do need to keep in mind is that these sites will likely only show you the remortgage rates of the lenders who pay them a commission. You are going to want to check out a few different sites to make sure that you are getting accurate information.


Another way that you can get remortgage quotes from a number of different lenders is to use a remortgage broker. A broker will be able to gather information on the remortgage rates of a number of different lenders and help to make sure that you get the best remortgage deal possible.

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: "https://hubpages.com/privacy-policy#gdpr"

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)