Hi, I am Peter a Bournemouth mortgage broker and over the 20 something years I have been working in financial services, the term ‘re-mortgage’ has and continues to cause confusion.
What is a re-mortgage?
The biggest misconception is that to re-mortgage means to re-finance your debt due to financial hardship. Re-mortgaging is also associated with meeting the cost of building work which is spiraling out of control. Whilst re-mortgaging can be used for these reasons, It is rarely the case.
I recently completed a re-mortgage which saved a client £308.00 per month. Reducing their current mortgage payment from £572.00 to £264.00 per month. That is a whopping 53% reduction. They were not in financial difficulty and in full control of their outgoings, they simply had not reviewed their current mortgage for many years.
A re-mortgage is quite simply replacing your current mortgage to obtain more favorable terms, and/or to raise additional finance.
In summary | Recommended mortgage broker Bournemouth
A re-mortgage is to reduce your cost, provide a more favorable mortgage, fund projects, purchases and for debt management.
At Key to Mortgages, Bournemouth we offer a free, no-obligation review of your current mortgage arrangements, future needs, and options available to you.
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