This typically happens after the sale of a property has been agreed upon and all the legal formalities have been completed.
Day one remortgaging can be used for different purposes, such as:
Refinancing: It can be used to refinance an existing mortgage, in order to secure a better interest rate or to change the terms of the mortgage.
Raising capital: It can also be used to raise capital for other investments or to consolidate existing debts. It should be noted here that securing debts against your property will likely increase the interest that you pay on this borrowing due to the term of the debt being increased and also may present a risk to your property if repayments are not maintained.
Avoiding bridge loans: It can be used to avoid taking out a bridge loan, which is a short-term loan that is used to bridge the gap between buying a new property and selling an existing property.
Reducing interest rate: It can also be used to reduce the interest rate on the mortgage, which can lower the monthly payments and save money over the life of the loan.
It’s important to note that day one remortgaging can be a complex process and it’s recommended to seek professional financial advice before proceeding. A mortgage broker can help you to find the most suitable mortgage deal and guide you through the process. Additionally, it’s important to consider the costs involved, such as early repayment charges, legal and valuation fees before making a decision.
At The Mortgage Branch, we are here to help you secure the most suitable mortgage for you, whatever your situation.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT
