Remortgage mortgages in Beckenham, also known as “refinancing” are a way for homeowners to pay off their existing mortgage loan and replace it with one that has more agreeable terms. When done right a remortgage mortgage can save the homeowner a significant amount of money over time and can also create a repayment schedule that better fits their financial situation.
Why Homeowners Choose Remortgage Mortgages Beckenham
There are a number of reasons why a homeowner may choose to apply to remortgage their home. The most common reason, as we alluded to above, is to save money. But that’s not the only reason. They may also want to:
- Shorten the loan’s term.
- Free up money for a new child.
- Have more money to care for an elderly relative.
- Free themselves from a punishing balloon payment.
- Take advantage of lower interest rates.
- Facilitate a smooth career transition.
But regardless of the person’s motivation, the process of obtaining a remortgage in Beckenham is the same: apply for the remortgage and then, when the loan is approved, use the funds to pay off the existing mortgage. Unlike a second mortgage, funds from a remortgage cannot be used for any purpose other than paying off the existing mortgage.