A remortgaging is a life-saving option for many of the people who feel tight with the finances in the case of investing large amounts in the property. It can be a buying home for your extended family or buying to let. There are many different kinds of remortgaging which helps you save yourself from drowning in the pool of high debts.
Increasing the rate of property and high rents of houses and shops has increased the lust of a common man to invest in the property right away. But with limited sources of finance one might compromise with his dreams. A remortgage is the best option in such situations.
If you are living in a small home and want to it extend it for your extended family now, then you can remortgage your current property. For remortgaging your current property you must have 50% LTV to your home. You must enough equity in your home to buy another house. Like you have a property valuing at £400K and you have pending mortgage of £160K that means you have LTV of 40% only now. While remortgaging you can expand this LTV up to 95% means you can raise the funds of value £220K only for purchasing a new house.
The interest rates for remortgage to buy another house depend upon the current market rates. You must always choose a broker who can provide you with the best remortgage deal. And with best remortgage offer in which fees and other charges must be lower and value to your current home must be higher.
Procedure for Remortgaging to buy another property
The procedure for remortgage is almost similar to the procedure of mortgaging your property for the first time. You need to submit your income proof along with your property and mortgage documents.
You can’t remortgage residential property for buying commercial property. There are different types of mortgages for residential and commercial properties.