Do you need a remortgage? Well, let’s back up – first off, do you know what a remortgage is? It’s basically the same thing as a refinance, except with a another lender; the other lender completely pays off your 1st mortgage and gives you a new one, hopefully at a lower interest rate. With rates down in the 4% range for buyers with good credit, this could be a great time to replace your higher-interest mortgage!Of course, with any new financial product comes new fees, especially if you’re looking for a bad credit remortgage, which we’ll discuss below; be sure you read the fine print carefully!
So should you get a remortgage? As usual with financial products, the answer is: it depends. Do you need to take out a larger mortgage to draw down equity in your home? Have interest rates fallen significantly since you took out your original mortgage? Do you just really hate your current bank, and want to never, ever deal with them again even if it means filling out paperwork to switch to a new loan provider?
Another reason you might consider a remortgage is if you have bad credit and aren’t able to find a loan from other sources. A bad credit remortgage should be easier to qualify for because you’re using your house as collateral; while you still have to demonstrate an ability to make the payments, the fact that you’ve already (hopefully) been making house payments on time will count in your favor.
Many banks and other financial agencies specialize in remortgages and bad credit remortgages and would love to have your business. Do a search online, but if you’re looking at anyone that’s not well-known as a reputable bank, be sure to do your due diligence and make sure they’re someone you want to be doing business with!
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