Studying Your Choices – A Loan On your Property or Remortgage


If there’s one thing that you are going to do as a homeowner, it’s going to be studying all of your options before really making a decision Thankfully, we’re here to help.

If you’re in the middle of trying to decide between a loan on your property vs remortgage, don’t worry — you are in good company. There are some pros and cons to each decision, along with important information that you need to know.

First and foremost, you need to understand that if you go with a loan on your property, you need to have sufficient equity in the home. This is true for the remortgage as well, but it’s even more so if you’re going to get a loan against your property. 

The best thing that you can do is look at how much equity you have in your home. In the case of a remortgage, you might be able to actually get more financing, but you will need to have a lender run through both options for you.

Look at your current mortgage to make sure that you’re not already getting the best deal. It might be tempting to just jump on an offer, but the truth is that many offers have teaser rates that adjust upward as time passes. So you might jump ship for no good reason.

You will also want to make sure that you have the fees upfront to pursue remortgage deals. Zero fee deals are very hard to find, so it’s important to try to go with the lowest fee offer that you can.

Creditworthiness is naturally going to be an issue, so make sure that you have this under control before you get too excited about all of the money that you’re going to have.

While you might have a purpose for the money already, it never hurts to really go back and make sure that your plans are solid. If you’re going to tackle a renovation project, have you already lined up whom you’re going to use? 

Do you know exactly what you want to achieve with the renovation? By thinking deeper on the project, you are less likely to waste time and money.


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