Thursday, June 11, 2009

Seeking a Remortgage Loan

The first fact to consider is that securing a remortgage loan can be a much simpler process, depending on the bank or other lending institution that will be handling the transaction. The paperwork and financial reporting that is required by the lender is usually quite a bit less than what was required in the original mortgage agreement.

Since the previous payment history will be part of the remortgage information a prospective lender will use in their decision whether or not to approve the loan, the financial status of the borrower is easier to determine especially if they have a solid record of paying in full and also on time. The lender will still need the usual information on things like proof of income, monthly expenses, and any outstanding debts that are owed.

Secondly, the fact that a remortgage is a situation where the new lender will be buying the original mortgage from the first lender, there is a possibility for a better interest rate and lower monthly payments to be negotiated in the new agreement, which can be financially beneficial for you. Not only that, the borrower will have the opportunity to obtain a loan against the equity they have accrued, since the buyout of the current mortgage will release the equity in the home or property.

Another noticeable difference between a remortgage and a refinance contract is that the valuation of the property, while still required for both of these loans, should be quite a bit less involved than it was in the original loan. This will depend on the surveyor who does the valuation, and the new lender may require a full valuation or may require their own surveyor to do the job, which will take the option of hiring their own surveyor out of the borrower's hands.

Visit us to get more information on topics like remortgage information and best remortgage rates.

No comments:

Post a Comment