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Should you Remortgage your Home?

September 8, 2021 4:32 pm

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For many people the option to re-mortgage is a good way to access money for something they may need. It is where you take out a mortgage to replace your old one on your home or take a loan against your property. However before going ahead with remortgaging, it is a good idea to consider all of your options, and if possible, speak to a professional like these Accountants Swindon based chippendale and clark.

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Here are some good reasons that could mean that remortgaging will be right for you…

You want to have a better mortgage rate – Sometimes there are large early repayment charges on a mortgage, so remortgaging could be a good way to get around this.

The value of your property has increased – If your property value has substantially increased, remortgaging might mean that you get a better rate based on the now higher value of your current property.

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If you want to pay off a large chunk but your current deal won’t allow it – If you are in this position and you have come into some money that you want to use to help pay off the mortgage, then remortgaging could be a good way to clear off a large chunk.

However, there are some circumstances in which it could be a bad decision such as…

The value of your home has decreased – This means that you will actually most likely get a worse deal, and you may be in negative equity. The best thing to do here is be patient and wait.

You have bad credit – If your credit record has worsened since taking out your last mortgage, you are not likely to be approved for a better deal and could end up in a worse position.

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