Re-Mortgage (Is not always the answer)
Pros
- Cash Raising (Subject to security)
- Consolidation of debts (credit cards etc)
- Cheaper opposed to Loans and credit cards
- If upsizing then a re-mortgage may be the answer.
- Ideal solution if in arrears with mortgage payments
- Ideal solution if issued with repossession notice (maybe possible)
Cons
- Early redemption penalties.
- Repossession (legal costs)
- Mortgage costs (valuation, legal fees, etc)
- Product change resulting in higher interest payments
- If adverse history, mortgage payments could be extremely high.
- Mortgage interest rate could raise
- Could extend the mortgage period
- Product change could result in higher interest payments
- Mortgage costs, valuation costs, legal fees
- Restriction by way of LTV (disposable income and affordability)
- Any cost factor is very important.
Please note that house prices can rise and fall and are subject to market variability.
It is sometimes possible that one should consider downsizing if they find that the household income
is insufficient to meet their needs. It could also be possible that if they have a current mortgage
that mortgage could be ported to another property saving substantial costs.
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