THE DIFFERENCE BETWEEN MORTGAGES AND REMORTGAGES

When a person wants to buy a home to live in the first thing to do is to apply for a mortgage which is a financial product that is used for property purchasing and a mortgage is required if it is a first property to get a foot on the housing ladder or a mortgage to move to another property.

There are so many different types of mortgages that it is important to obtain the correct advice because not doing so can be very costly in terms not only of money but also nerves, and a mortgage adviser is the best person to ask about mortgages. Obtaining the correct mortgage can save thousands of pounds in the long run.

This mortgage advice is more necessary for a person buying their first property as they are unlikely to know much about mortgages as they have not ever previously owned a home although their parents may be able to point them in the right direction.

Remortgages are very much the same as mortgages and what a remortgage is is the transferring of a mortgage from one mortgage provider to another all meaning that only homeowners are eligible for remortgages. Remortgages are often sought simply to achieve a lower rate of interest as there are big differences in rates from one mortgage provider to the other.

When a homeowner takes out a remortgage for the exact same sum as the current mortgage, the remortgage is known as simply like for like as it simply takes the place of the current mortgage but with a lower payment and no additional money is requested.

The main difference between remortgages and mortgages is that the latter is the loan with which you buy a house and the former is the moving a mortgage from one lender to another. In addition to like for like remortgages, a remortgage can be a way to release money on the equity of a property to buy just about anything.

Often a homeowner takes out a remortgage to pay off all his financial outgoings in loans and credit cards and this is known as debt consolidation as all debts are consolidated or combined into the one lower payment.