Remortgage

People are now more aware that shopping around saves money even in relation to their mortgage.  There are a few reasons why people choose to remortgage:

  1. Switching to another lender to avail of better rates.
  2. To consolidate existing debts into your mortgage.
  3. To borrow additional money for Home Improvements.

What exactly does Remortgaging mean?

Remortgaging is when you take out a new loan which pays off your existing mortgage and allows you to borrow against the equity you have in your home.

Rates as low as 3.60% (APR 3.70%) are available for switchers if your mortgage is less than 50% of the value of your home. Compare this to typical variable rates of 4.50% offered by many lenders.

Switching your mortgage to a cheaper lender can save thousands of euros over the life of a mortgage.

Short term debt of up to €40,000 may be consolidated on a remortgage subject to the new mortgage not being greater than 90% of the value of the property.

 Another attractive feature that we can offer our customers is that you can avail of a split package on your mortgage for example if you are remortgaging and your new mortgage will be 100k if 70k is what your currently owe on your mortgage and the additional 30k is short term debt you may want to keep these two loans separate put them over different terms and rates.

The following needs to be considered prior to deciding to remortgage.

1. The upper limit on remortgages is 90% of the value of your property.

2. Do not consider a Remortgage if you are currently on a tracker rate.

3. As a guide you should budget in the region of €1000 (including vat and outlay) for fees involved in a remortgage.

4. You will need to have  life insurance to the value and term of your new mortgage in place prior to draw down. We at Foskin Financial can provide you with a competitive quote for life assurance.

5. Redemption penalties may arise if you are breaking a fixed rate mortgage agreement.  Check with your current lender regarding what if any penalty is payable on switching.

6. Currently the best value rates on offer are variable rates. However there is a wide divergence in rates between lenders . Choosing the wrong lender can prove very expensive in the long term.

If you wish to talk to an adviser about remortgaging please get in touch by contacting us on 051 885358, 087 2261572 or email be at foskinp@eircom.net

WARNING: If you do not keep up your repayments you may lose your home.
WARNING: You may have to pay charges if you pay off a fixed-rate loan early.
WARNING: This new loan may take longer to pay off than your previous loans. This means you may pay more than if you paid over a shorter term.
WARNING: The cost of your monthly repayments may increase.