If you have a mortgage loan, you could possibly save a considerable amount of money each month by re-mortgaging. Even though doing this can bring about financial benefits, there are a few things to consider before diving into the re-mortgaging process and looking at re-mortgage deals.
Thing to Know #1: It’s Not a Quick Process
When you go about re-mortgaging, you need to know the process is not one that can be completed in only a few days. In fact, it will usually take several weeks. Even though this is a major downside to re-mortgaging, the money that you can save over the years from doing so will definitely be worth the time period that it takes to complete the process.
The best way to go about re-mortgaging is to do it through the same lender that you currently have your mortgage loan through. On the other hand, if you can find a lender that offers significantly better savings, it may be best to switch lenders.
Thing to Know #2: It Does Cost Money
Since you have a mortgage loan, you are already aware that fees are involved in acquiring the loan. Much of the time, these same fees will apply when re-mortgaging. The exact fees that you will be required to pay will depend on the lender that you go through. Such fees often include:
– Exit fees
– Application and product fees
– Solicitor fees
– Survey fees
– Higher Lending Charge (if borrowing more than 75 percent of the home’s value)
Thing to Know #3: You Have to Prove Who You Are
All persons that are to be listed on the re-mortgaging will have to prove their identity. To do this, each person will need valid identification documents such as a passport and possibly recent utility bills to confirm proof of address. Paperwork that is not usually taken as proof of identification includes council tax bills, credit card bills and mobile phone bills.
Thing to Know #4: Expect to Stay on the Phone
When you go through the re-mortgaging process, you can expect a lot of communication to take place between you and your mortgage lender. In addition, if you are obtaining your re-mortgage through a different lender, even more communication will take place. Although the abundance of communication that takes place can seem overwhelming, remember, once the process is completed, you will be well on your way to saving money.
Re-mortgaging is a great way to lower your monthly payments, or if you prefer, you can increase your payment amounts and have your loan paid off quicker than your initial mortgage loan called for. No matter what your reason is for re-mortgaging, there are benefits to be gained.
