A remortgage means that you pay off an initial mortgage with funds from a new mortgage, all on the same property. In general, a remortgage is sought out for a better interest rate either from another lender or from the same lender whose offers have been positively affected by the current economic situation. Sometimes a remortgage is a means to smaller monthly payments (over a longer period of time), to shorten the length of the loan (with larger monthly payments), or to use the equity built up in the property to release funds when you need them.
However, a remortgage does not only mean good news. Consider the fees involved in the transaction. Are there early repayment penalties on your current mortgage? What are the fees for the new mortgage? Those considered, is it still advantageous to remortgage? If you remortgage for the purpose of lowering your monthly payments, you must consider the timeline. Will you now be making repayments into your retirement years?
Halifax is just one example of a UK lender offering a variety of remortgage plans. Their website announces that they ?have a great remortgage range, including fixed and tracker rate remortgage rates.? They also offer to carry out all the legal work, no legal fees on certain offers, the option to add any product fees to the mortgage, and special features (over- and underpayment options, payment holidays, term flexibility, daily interest).
If you are remortgaging, Halifax offers two-, three-, four-, five-, and ten-year fixed rate remortgage terms as well as one-, two-, and three-year tracker rate mortgages. The last remortgage offer from Halifax is a whole-term tracker. The interest rates available and fees charged range greatly according to the amount you are looking to borrow and the terms that interest you. Some of Halifax?s remortgage offers are only existing customers only, and not for anyone making the switch to Halifax with their remortgage. If you are unsure about the best step for remortgaging, consult an independent financial adviser who will be able to find you the best deal for your personal circumstances.