Refinancing is the term used for arranging to pay out an existing mortgage with a new loan. Most people refinance their mortgage at some point in the life of the loan for a variety of reasons.
To reduce your mortgage repayments. Refinancing can often reduce the amount of your mortgage repayments, particularly if you’ve had your loan for a while or your financial situation has improved and you can access a lower interest rate. You can also extend the life of the loan, making your repayments smaller.
To extend or remodel your home. Refinancing can allow you to access some of the equity in your property to use for renovations and extensions. It’s a great way to get the home you want and increase its value.
To consolidate debts. Refinancing could allow you to access funds to pay off expensive debts like credit cards and car loans for example, reducing the overall amount you have to pay on interest and save you money on repayments.
To access the equity for other purposes. By refinancing, you could access funds for a deposit on a property investment, educational costs, to support your children in purchasing their own home and more.
