Whether you want to lower your monthly mortgage payments or you want to unlock your property?s equity in order to invest in higher valued property, you may want to consider remortgaging. The remortgaging process is a very simple process in which you are simply shifting your mortgage debt from one lender to another or perhaps your are renegotiating with your current lender.
Bad Credit remortgage
A bad credit remortgage occurs when you have less than desirable credit because of problems making payments due to financial restrictions, bad cash flow, or untimely payments. A mortgage borrower may switch to a bad credit remortgage as the interest rate is lower compared to other remortgages. Your mortgage is likely to be your single biggest financial commitment, so when it comes to repayment, there are times when monthly payments may seem unmanageable. In this case, it makes sense to find the best possible bad credit remortgage deal. Bad credit remortgage deals give you the opportunity to pay off any outstanding debts. A bad credit remortgage also helps to raise an extra sum of money against your property. The status of the current market is such that you can easily raise an extra sum of money against your property and still save money on your total monthly payments.
How to Remortgage When You Have Bad Credit
When you are faced with bad credit, there are less options available to you, but the current market has made many bad credit remortgages available to those with a deposit of 25-30 per cent or above. Do bear in mind that when you are applying to get a bad credit remortgage, you will have to pay an arrangement fee and a valuation fee if you are going to a new lender. Depending on whether you are still within your tie-in period with your current lender, you may also need to pay early redemption penalties on your existing mortgage.
The most common reason that people take out bad credit remortgages is to reduce their monthly costs. You can enjoy the benefits of lower monthly payments by switching to a lower interest rate or you can keep your monthly mortgage payments the same. By reducing your interest rate and by keeping your payments the same, you will be able to repay the mortgage in a shorter time, thereby reduce the overall term of the mortgage. Of course a bad credit remortgage is a considerable financial commitment, and as with any home loan, you are at risk of losing your property if you do not keep up the monthly repayments. We would advise speaking to a remortgage specialist before proceeding with a home remortgage loan.