Remortgaging Questions Northern Ireland
What is a Remortgage?
A remortgage is when an existing mortgage is repaid and replaced by another mortgage.
How does it work?
It is possible to raise money using your home, or any other property owned by you, as security. Mortgages are usually long term loans where interest rates are lower than secured loans or unsecured loans. By extending the term of a mortgage over a longer period of time, the overall interest you will pay will be greater.
Firstly you should contact your current lender to request a quote for a new mortgage. You should do this as you may incur an early repayment charge by changing from your current lender. Refer to your lender's mortgage offer letter and it should contain details of any early repayment charges.
If you are not happy with a quote/fees given by your existing lender, or they not prepared to lend to you, then you can use a company who may be able to offer you more favourable terms.
What can I use a remortgage for?
You can use the money from a remortgage for any purpose you lik , for instance:
- Home Improvements
- Capital Raising
- Second home or Holiday Home
- Car Purchase
- Debt Consolidation
- Paying off of arrears
- Paying off CCJ's
- Paying off debt under management.
- Avoiding Bankruptcy
- Avoiding repossession
- Business Venture
- Equity Transfer ( usually to pay off a former partner )
or any combination of the above.
Will I need to be legally advised with regard to taking out a remortgage?
For peace of mind it is always best to take professional advice.
Can I cover the mortgage repayments against Death, Accident Sickness & Unemployment?
Yes - most lenders these days offer a range of insurance cover from Life Only to Sickness Accident & Unemployment & including life.
Before taking on cover you should ask yourself ( and partner ) some very important questions. What would happen in the event of my death? How would this leave my partner financially? How would I or they continue to make repayments on this new mortgage?. Do I / we have an existing cover already in place that would cover these eventualities? Do either of us have any existing or past illness or disability that would prevent an insurer from paying out. Remember, insurers will often obtain a medical report from your general practitioner. Is there a possibility that we may be made redundant from employment. Has an announcement to this effect been made public? - Being self employed will I still be able to make a claim? Will the claim be covered for unemployment? Remember insurers will not always pay out for self employed. How long will I / we be covered for? Do I pay a single premium that covers me for a limited period or will I pay a monthly premium every month in addition to my mortgage. These are things to consider before taking on payment protection cover. You should also consider that should you be in an accident for instance and unable to work - it is likely to be nine months before you can claim benefit. In that time you could be facing eviction with nine months arrears. We do not offer advice or insist on whether you should take out cover or not. We believe that you should be aware of the options. The risks on no cover are considerable.
Is the Mortgage portable?
This all depends on the deal that you agree with your lender.
