The following is a guide to what is remortage? We have tailored the guide to those in Ireland with a property that you may be considering remortgaging.
There are various types of remortgaging. The two main types both involve a property that you already have a mortgage on.
A remortgage generally either means moving the current mortgage account to a new lender or increasing the amount of money that you are borrowing.
It could involve moving to a new lender and increasing the amount of the loan.
Changing to a new lender is something that is usually done to get a better mortgage rate.
There is a lot of competition between lenders and so it can be prudent to look at the options available every so often to see if there are any better deals around.
This can save a lot of money if you can find a significantly cheaper rate and so by regularly looking at what lenders are offering you could end up with a better rate and making good savings over the term of your mortgage.
It is worth considering the fixed rates as well as the variable rates and considering what the future might hold with regards to interest rates.
If you fix at the right rate, you could avoid an increase in payments when the interest rate goes up but if the rate goes down you will lose out.
A variable will usually always go up when the interest rate goes up and may or may not go down when the rate goes down.
If you want to borrow extra money against your property then you may stay with your current lender or choose a new one. You will only be able to increase the amount of your mortgage if your property has increased in value since you purchased it.
The lender is likely to let you borrow the difference between what you already owe and the value of the property.
It must be considered that if repayments on any mortgage cannot be made then the property can be lost.
This means that it can be worth changing to a cheaper rate to help the cost of the loan be more manageable.
However, borrowing more money can be a risk as your repayments will be higher. It is wise to calculate the change in your monthly payments and make sure that this is affordable for you.
Specialist Remortgage Companies
There are various companies offering remortgages. As always be careful to shop around and make sure you are getting a good deal.
Some remortgage companies may advertise bad credit remortgages. These may come with higher interest rates so be careful.
Article by Loans Ireland. Information, news and updates on loans, mortgages and remortgages in Ireland.
This article was checked and updated 2nd December 2017.