Should You Opt for a Flexible Remortgage?

If you are in the market for a remortgage, you will probably be presented with the opportunity to go with a flexible remortgage. Having a flexible remortgage can have its benefits. However, at the same time, it can present you with a few potential problems. Here are a few things to think about if you are considering getting a flexible remortgage. 

Payment Schedule

Certain remortgage programs allow you to be flexible when it comes time to repay the money you borrowed. At first glance, this can seem like a major benefit and welcomed opportunity. In some cases, if used correctly, it can be very helpful. However, most people do not have the self-discipline that it takes to make this work. 

For example, let's say that you have a remortgage program that only requires you to make the interest payments each month. This will lower your mortgage payment each month. However, none of the principal balance is being lowered on the loan. Therefore, at the end of the term, you still have the entire loan amount to pay off. This has blindsided many homeowners over the years and left them with balances that they could not pay. Make sure that you understand what you are getting into before you opt for a flexible remortgage product. 

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