Home Remortgage Loan

If you are a homeowner and you need to raise cash for home improvements, a family wedding, or any other purpose, you may be able to take out a home remortgage loan. If you already have a mortgage on your property, this home remortgage loan would involve switching from your existing mortgage provider to one that offers a better deal on interest rates. You would then save money each month on your mortgage repayments. If you have paid off all or some of your mortgage, you will be able to take out a home remortgage loan to release the equity available in the property. The amount that is available to you will depend both on the amount that you have paid off and the current market value of the property.

A home remortgage loan involves extensive organisation, and you would be liable for certain fees in addition to the interest costs of repaying the loan. For example, you will often be charged an arrangement fee by the provider of the home remortgage loan and you will need to hire a surveyor to value the property. Therefore, when you are looking at the different rates on a home remortgage loan, you should use the APR (or Annual Percentage Rate of change) as a means of comparison. The APR takes every possible charge into consideration over the life of a home remortgage loan, including any early repayment charges and the fees mentioned above. If you are planning to switch providers to get a better deal, you should check first that you are not going to be charged a fee for moving (as is usually the case in the first years of a home mortgage deal, because this fee may negate any savings that you would make from taking out a new home remortgage loan.

Find a Home Remortgage Loan today!

Home Remortgage Loan Basics

• As with a first time mortgage loan, a home remortgage loan incurs many administrative costs in addition to the interest you will be charged on the loan.  Make sure that you are fully aware of all these potential charges, including the costs of early repayment (to counterbalance the lender would lose in interest), the valuation fee and arrangement fee.  
• The lender will calculate the terms of your home remortgage loan based on the value of your property, the outstanding mortgage balance that you have from your existing mortgage deal (if applicable), any other secured debt that you have and also the 'loan to value' or LTV.  The LTV is the amount you wish to borrow as a percentage of the total value of the property.  As lending criteria are now much tighter, most lenders require a maximum LTV of 85%, or lower if you have a bad credit rating.