Shares Prices

Sometimes you find that you can get a good mortgage rate for the initial first years of a fixed rate mortgage – say 2, 3 or 5 years. Then what often happens is that you then drop to the SVR (Standard Variable Rate).

The SRV is often a greater interest rate than the initial introductory rate.

Therefore the key is to re-mortgage your house after the initial fixed term has expired and go for a much better interest rate. This will save you money as the re-payment amount will be much less.

You sometimes also find at this stage that not only can you get a better interest rate, but you may also be able to release equity if the value of your home as risen over this period.

Re-mortgaging and releasing cash tied up in your property may be a good idea if you need to raise additional money at a low rate rather than obtaining an un-secured personal loan . However, it is also wise to keep equity within your house as a safety barrier against market changes.

By using a online mortgage calculator this will be able to give you the neccessary information and repayment calculations to check if re-mortgaging your home is a possibility. If the value of your house has dropped, or has not risen significantly then you may find that you are unable to re-mortgage.

If you are considering about about re-mortgaging your property then it is wise to talk to a specialist mortgage consultant who can run through your choices and will be able to give you independent advice and help on making the right choice.

Another way of releasing equity without selling your home, or re-mortgaging is a sell and rent back agreement which means you can sell your home and rent it back as long term tenants. Professional advice should be given before progressing with this type of rent back agreement.  

The re-mortgage market is huge and it always pays to do your research and to discover all your options before going forward.