When you remortgage you simply pay off your current home mortgage and take out a new one. That's easy enough.. well yes it is.

The process is such that you don't have to raise additional funds to pay off your existing mortgage and then take out a new one. The act of taking out the new mortgage is sufficient to sort this out. The actual exchange of funds between lenders takes place behind the scenes.

Many homeowners are not aware that they can re mortgage or what it means financially.

So Why Remortgage your Home?

If you took out your mortgage some years ago it will almost certainly be at a higher interest rate than you can get today. So you are paying more for your mortgage than you could be.

For example:-

If your current mortgage interest rate is say, 7.5% on a £100,000 loan and you can remortgage to another, which charges you 7% you will be saving £31 per month.

That is £370 a year which is £9,250 over a 25 year mortgage term. If you invested this amount of money each month this could be worth considerably more. But this is only for one half of a percentage change!

Some home owners use this as a means of raising additional finance. For the same monthly outgoing you can potentially borrow more money. Or if the value of your property has increased since you took out your original mortgage you may be able to increase the size of your mortgage to raise additional funds. This obviously depends on the current value of your property and your circumstances.

Turney and Associates Ltd. can provide you with advice as to your best options based on some the best remortgage deals.

However you must be aware that there are costs associated with home remortgages.

What are the costs of Remortgaging your property?

There are costs associated with remortgaging your home these will vary with the mortgage lender, but you should be aware that:

• You will be required to have your property revalued by the new lender to confirm that it is still adequate security for the loan. Sometimes the valuation costs will be included in the package sometimes you will have to pay a fee.
• A solicitor will also be required to handle the mortgage transfer and there will be costs associated with this. We can recommend solicitors who will act on your behalf.
• Mortgage brokers may charge you a fee for their services.
• There may be early repayment charges attached to your existing mortgage which are there to deter you from switching mortgage companies on a regular basis. These early repayment charges usually decrease with time and may be a percentage of the amount outstanding on the mortgage.

We will provide you with full details of the options available to you and the associated costs.