Cheapest Remortgage Possible

If you are thinking of remortgaging your property, you will probably want to find the cheapest remortgage possible. Those who are seeking the cheapest re mortgage should keep in mind that they will probably seek to get an interest only remortgage at a variable rate.

There are many reasons why one would want to remortgage their property. While some do this to secure a fixed rate mortgage, others wish to obtain some of the equity from their property in cash so they can perform home improvement projects. Still others choose to lower their monthly payments. Depending upon what you wish to accomplish determines what remortgage option is right for you.

An interest only remortgage requires you to pay only the interest on the mortgage instead of the capital and interest, as in a repayment mortgage. An interest only remortgage is one of the cheapest remortgage vehicles you can get, in terms of low monthly payments. To keep your monthly payments very low, you should request that the mortgage be extended for as long as possible, up to twenty five years. Keep in mind, however, that although your monthly mortgage payments will be very low, you will have to pay off the capital at the end of the remortgage term.

To find the cheapest remortgage available, you need to check out interest rates offered by lenders. If you choose a standard variable rate mortgage, you will receive a low interest rate which will stay in place for a certain period of time. Other variable rate mortgages include a discount rate mortgage that some lenders offer. A discount rate mortgage is generally very low, even lower than a standard variable rate mortgage, but does not stay in place for a long period of time. After the specified period, the interest rate will rise, in accordance with the discretion of the lender. Still another variable rate mortgage is a tracker rate mortgage. The rate for a tracker rate mortgage is determined by the base rate established by the Bank of England. A tracker rate mortgage has an interest rate that fluctuates in accordance with the base rate, so it may go up or down, depending upon the rate set by the Bank of England.

Those seeking to get the cheapest remortgage possible should consider an interest only remortgage with a variable rate set for the longest term possible. The monthly mortgage payments for this type of remortgage will be very low and can give one an opportunity to save money towards the capital. In addition, one must research the rates of competitive lenders. It is wise not to remortgage with your current lender as lenders generally offer better rates to new customers.

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