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What is Remortgaging?
Remortgaging Pros and Cons
Remortgaging FAQs

Remortgaging FAQ’s

What types of mortgage are there?
How much can I borrow?
What is a higher lending charge (HLC)?
How long can I borrow the money for?
How much can I save?
What if I move house?
What happens if I am made redundant?
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What types of mortgage are there?
Tracker – Repayment amounts follow the interest rate and can change on monthly
Variable – The lender can change your rate at any time
Fixed Rate – APR is fixed to a set amount for a limited time
Discount – Discounted rates for the first few monthly payments
Capped – Monthly repayments can vary but never go above a set level

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How much can I borrow?
This depends on a number of factors, such as your credit history, value of your house and the outstanding balance on your mortgage. Borrowing above a certain amount can mean you will incur a Higher Lending Charge (HLC).

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What is a higher lending charge (HLC)?
A HLC stands for Higher Lending Charge. If you borrow above a certain amount, usually 90%, you may incur this charge from your lender. The HLC is used to reduce the risk for your creditor, which can be used to purchase insurance or to re-invest.

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How long can I borrow the money for?
This depends on how much you borrow and over what term. Repayment terms can be between 3 years up to 25 years.

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How much can I save?
You could reduce your payments as much as 75% depending on how much you borrow and over what term.

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What if I move house?
You can settle the outstanding balance, ask the lender to transfer it to the new property or use the new property as security. Be sure to check any terms and conditions thoroughly before signing any agreements.

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What happens if I am made redundant?
To protect you from a sudden change in circumstances, i.e. if you were made redundant or lose your job for whatever reason, it is highly recommended to take out Payment Protection Insurance or some form of insurance policy to cover your repayments. This may also cover you in the event of illness.

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Need more help?
The UK Debt Advisor can help you find the best remortgage deal for your circumstances. Call us free on 0800 043 2027 or use our free call back service.

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