Depending upon when a homeowner bought their home the original interest rate they received may have been significantly higher than what is being offered currently by lending institutions. This is the most common reason homeowners seek out Remortgage Mortgages in Hayes. But it is not the only reason. Below we’ll take a look at Remortgaging so you can decide if it’s right for you.
Why Homeowners Seek Remortgage Mortgages in Hayes
The reasons homeowners seek to remortgage their home vary, but usually fall into one of the following categories:
- To shorten the term of their loan.
- To prevent triggering a balloon payment due at the end of their current mortgage.
- To free up money they can apply to other types of debt.
- To lower their monthly payments in order to free up money for personal use.
Some homeowners approach our team at Mortgage & Lifetime Solutions with the impression that remortgaging is the same as obtaining a second mortgage. It’s not. The major difference between the two is that funds from a second mortgage can be used for any legal purpose the homeowner wishes.
By comparison, funds obtained by remortgaging can only be applied to pay off the existing mortgage. The money you save every month by remortgaging may enable you to enhance your lifestyle, but the loan itself must be applied to the existing mortgage.
