remortgage? how does this work?

LJW_2

Hi, I am new to this house buying thing and wanted to know how a remortgage works. Would it mean that you go back to year one if you remortgaged?

kingkano

no not necessarily. you usually pick up the remortgage with the same years left as your previous one. Although some people do get more money/increase term to reduce payments etc. Its upto whatever you apply for.

Jeannine

I've remortgaged 4 or 5 times in the last 19 years but always take out the new mortgage for the same number of years that were remaining on the old one. I've just remortgaged with ING Direct for a 6 year term, hopefully for the last time (if they remain competitive!).

save-a-lot

Hi

I have remortgaged 3 times now and have managed to never pay over 5% on my mortgage. I have done:

1) two year fixed - no extended tie ins
2) two year fixed - no extended tie ins
3) ten year fixed - no extended tie ins

On each successive remortgage I have have also knocked a year off the term, so I am now on a 18 year term.

When looking to remortgage be very careful of extended tie ins with the lender, essentially this means that the lender could offer an attractive rate for maybe 2 years, after which the tie in would kick in and you would find yourself paying a mortgage at a much higher rate. You can get out of the tie-in but there would be a charge, and this charge would likely ruin all the savings that you made by remortgaging.

So, look for good deals with no extended tie ins and you will be laughing.