Article: Remortgage To Restart The Mortgage Cycle On Fresh Terms

Remortgage To Restart The Mortgage Cycle On Fresh Terms

Remortgage or refinance is a right that lenders of the yesteryear were afraid to offer to borrowers. In fact, remortgage was severely prohibited through clauses such as early repayment penalty. The logic was that by refinancing the borrowers were actually paying off the mortgage earlier. In this manner, the lenders lost a large amount in the form of interest.



Borrowers flinched at the early repayment penalty, but they continued with their demand to exercise the right to refinance. Loan providers accepted the fact that it will not be an easy task to continue binding the borrowers. Now the right is easily exercisable, except for a few loan providers who continue to include such outdated clauses in the mortgage contract.



Remortgage or refinance takes place when a...
 

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Remortgage To Restart The Mortgage Cycle On Fresh Terms

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