Getting a mortgage is a huge financial step, so it’s a decision that you’ll want to get right.
Put simply: a mortgage is a loan taken out to buy a property and is secured against the value of your home until the mortgage is paid off.
When applying for a mortgage, you’ll need to:
- Prove you can cover the monthly mortgage repayments, even if interest rates were to rise or your financial circumstances change.
- Undergo a credit check with a credit reference agency to look into your financial background – this is to assess the risks of lending to you.
Remortgaging is where an existing mortgage is switched to a new deal – either with the current provider, or a different one. It’s usually used:
- When the fixed or discounted rate on the mortgage ends, and the long-term variable rate is introduced, as this tends to be higher than the rates on new mortgage deals
- To consolidate debts
- Fix monthly payments
- Reduce the interest rate on your current mortgage.