Keys to successfully remortgaging your home

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Remortgaging a home can be a great way to obtain liquidity, whether to renovate your house or to buy a second home . But be careful! because this procedure is not accessible to everyone and, in addition, entails a whole series of expenses and risks. In today's article we will talk about the keys to remortgaging your home, so that you have all the information before making a decision.


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What does it mean to remortgage a home?
Remortgaging a home is a financial operation in which a primary home is Chinese Overseas America Number Data mortgaged again. It may be a property that is already free of charges and you want to remortgage it or, if you already have a current loan, you would have to cancel it and do it again with the new amount.

It is an operation that entails a whole series of expenses, so it is important to know them to know if it is a procedure that will compensate you in the long run.


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Steps to refinance your house
There are two main reasons for making this decision:

You need liquidity. It may be that you have financial problems or you simply need money to renovate your house.
Debt reunification . When you have several debts simultaneously, one way to organize it is to unify them, this way you would pay all the loans in one installment.
But it's not enough that you want to do it, you also have to be viable for the operation. Here the bank comes into play, once you have made the request to your entity, you will have to wait for it to review your profile and approve the request. Even if your mortgage was already approved, the bank needs to verify that you are still viable, especially when you are requesting a refinancing of your property. These are the points that will be taken into account:



Solvent profile: employment contract, debt capacity, job and economic stability, savings.
Conditions of the new loan: why do you need to remortgage? how much money do you need? what conditions are you looking for? All these points are important so that the bank can correctly evaluate your application.
Property value. They will have to carry out a new appraisal to see the value of the home, it is likely that over the years it will no longer be worth the same so you will have to be prepared for this possibility.
Expenses for remortgaging a property
Here there will be different expenses, it will depend on the situation you find yourself in: free housing or with a current mortgage. Let's look at the two options.

Housing free of charges
If you have already finished paying your mortgage, you will have to assume the costs of opening a new loan. But we have good news, after the new mortgage law you will only have to face the costs of the appraisal and the opening commission.

As for the opening commission, they can only charge you if there is a justification, that is, if the bank is assuming costs for opening your loan, it can charge you the commission.

Housing with mortgage
If the property still has a current loan, you will have to cancel it and subsequently open a new mortgage. The cancellation costs are as follows:

Commission for early repayment. The amount will vary depending on whether it is a mortgage with fixed and variable interests, and is not a mandatory clause, it will depend on the banking entity. Before making the decision, review your current contract to see if you have this clause and how much the commission would be.
Notary fees. You will have to bear the notary's costs for signing the cancellation deed, the expense amounts to €30.05 (plus VAT). In addition, you will also have to pay for a copy of the deed.
Property registration. After signing the cancellation deed, you will have to pay for the cancellation of the Property Registry.


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