Over recent years the idea of remortgaging has been marketed more and more. Choosing to remortgage can seem like a daunting decision though, as your house is the most expensive thing you will probably ever own as well as being the very roof over you and your family’s head. The most important aspect to making the right decision for you is to fully understand what remortgaging actually means because, although remortgaging might make some customers huge savings, it may not profit everyone.
A remortgage is used to replace an existing loan. With a remortgage the new deal will provide customers with easier monthly repayments and reduced rates of interest.
Interest rates are the percentage amounts that the value of a loan increases by over time. Interest is a check against inflation for lenders as well as where they make their profits.
The point of a remortgage is that the new lender will offer lower interest and repayment rates than those on your previous loan. What this means is that, once your new lender has paid off the whole value of the original mortgage, you will be left with less money to pay back in the longer term.
This means that a remortgage can be a great option for any home owner who’s unhappy with the deal on their current mortgage. If you are a customer currently struggling to keep up with high interest payments, or even if you just want to save some money in the long term, then remortgaging is a great option.
On the other hand, if you already enjoy favourable interest rates on your current mortgage, then a remortgage may not be ideal for you. Either way, it never hurts to get a quote and make sure you’re not missing out on potentially major savings.
The money made through remortgaging can then be used for whatever the customer wants. Customers can use the extra cash to make home improvements, pay off outstanding bills or even take that holiday of a lifetime they’ve always dreamed of.
For more information, Norton Finance offers a range of remortgaging services as well as a wide variety of Norton Loans. Customers can apply for a free, no obligation quote through the Norton Finance website.