3 Types of Remortgage Services

Electing remortgage services can be highly risky because the home itself is used as collateral. When you take a remortgage, you are trading in the equity you have built in your property, converting this equity to cash and going into debt. There are a number of different services a remortgage provides that can make this risk worth the reward.

#1 Cash Out Remortgage

If you need cash desperately, you can take a remortgage loan larger than the amount you owe on your current mortgage. Once you pay off your original loan, the additional cash goes straight into your pocket to be used for your emergency.

#2 Refinancing Remortgage

The only time refinancing with a remortgage really makes sense is when you are moving from a variable rate loan to a fixed loan. Otherwise, the costs and risks of a remortgage rarely present a low enough refinance rate to benefit the borrower.

#3 End of Life Remortgage

Some individuals find they do not have enough money to support their retirement, but they do have a huge amount of equity in their home. They can take a new mortgage on the home to live out their lives and then pay down the sum upon death with payments from a life insurance policy.

blog comments powered by Disqus