A remortgage is a process of replacing an existing mortgage on a property with a new one. There are various reasons to remortgage, such as obtaining a lower interest rate or changing the type of mortgage. You must go through the mortgage application again and pay closing fees when you remortgage.
Determine your financial situation and the reason for remortgaging. Consider factors such as your current mortgage terms, the value of your property, and your financial goals.
Contact our mortgage specialist to find the best mortgage rates and terms. Our mortgage specialists compare different lenders, such as banks, mortgage brokers, and online lenders.
Gather the necessary documents for the new mortgage application. Our mortgage specialist invites you to our online portal to upload documents.
Our mortgage specialist selects a new lender based on your goals. We submit documents and manage your mortgage application.
Lower interest rate: one of the main reasons to remortgage is to take advantage of lower interest rates. By refinancing your mortgage, you may be able to secure a lower interest rate, which can significantly reduce your monthly payments and save you money over the life of the loan.
Change mortgage duration: remortgaging can also allow you to shorten your mortgage term, which can help you pay off your mortgage faster.
Change the type of mortgage: you can change the mortgage type when remortgaging. For example, you can switch between annuity, linear, or interest only.
Improve your financial situation: remortgaging can also help you improve your financial situation by allowing you to pay off high-interest debt or by providing you with extra cash flow each month.
Closing costs: one of the main downsides of remortgaging is that you must pay closing fees again.
Mortgage penalty: some mortgages have prepayment penalties, fees that must be paid if you pay off the mortgage before the end of the loan term. Our mortgage advisor can calculate your remortgage penalty to see if the remortgage makes sense.