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How to remortgage your home

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Are you considering re-mortgaging your home? There could be a number of reasons why you want to re-mortgage; from saving money to getting additional cash for something important. Whatever the reasons, you need to seriously think about what re-mortgaging entails. There are many things to think about before you take the plunge.

Find out whether it’s right for you

The very first thing you need to do is understand whether or not remortgaging is the right option to suit your needs. A good way to do this is to book an appointment with an expert. They will be able to assess your situation and explain the process in more detail if it is the right option for you.

Working out the costs

It’s a good idea to compare your options before you reapply to your current lender as you may be able to save quite a lot of money if you shop around. There are even websites online that can help you to compare the various deals currently available.remortgageing your home

One thing you do have to take into account is whether your current lender will charge you for early repayment. Don’t necessarily be put off if they do. Add up the savings that you’ll make with the new deal and see if it is worthwhile over the long term.

Also look at the fees you might need to pay the new lender upfront. It’s always worth reading the small print before you make a decision. This tells you all of the costs involved with the remortgage. Sometimes a fantastic discount hides the fact that you’ll be paying more overall in other fees. You need to be smart when looking at the costs of a mortgage.

Filling out paperwork

Once you’ve found a deal that you’re happy with, the next step is to fill out the paperwork. This can be a time consuming process. However it’s possible to enlist the help of a remortgage expert as they can fill out the paperwork for you if you’re not confident doing it yourself.

Waiting for approval

The lender will first look at your application and assess whether you’re an ideal borrower. Credit checks will then be carried out and your credit score might be taken into account – each lender is different so the approval process will vary.

Valuing the property

If you pass the first stage of approval, the next step is to have the property valued. This is to basically give them a peace of mind that the property is good security against the mortgage.

Getting an offer and completing the deal

If the lender is satisfied with the valuation, they will send you a formal letter to let you know you’ve been approved. It really is as simple as that.

The hardest part about remortgaging is going through the approval stages. Ensuring you have good credit is a must before you apply. If you don’t, think about the ways that you can improve your credit score to minimise the chances of being turned down. Always take your time to compare the different remortgage deals available.

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About Jemma Porter

About Jemma Porter

Jemma Porter is an experienced content creator who has written for a number of online publications. A self-confessed penny pincher; she's often found seeking out the best personal finance deals.

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