What to Expect when Applying for a Fast Remortgage

A fast remortgage, like any quick loan process, will often result in worse rates and terms than a slower process. When you move slowly, you spend more time sourcing quotes and negotiating for the best deal. Since remortgages already tend to be risky endeavors, opting for a fast remortgage can cost you in the end.

What is a Remortgage?

A remortgage is similar to a third party refinance because it uses a new loan against a property in place of the existing loan. The key difference is a remortgage often applies to a home where the mortgage has been paid off or nearly paid off. As such, the borrower is typically looking for a lump sum of cash by collateralizing the equity they have in the home.

Why is a Remortgage Risky?

Any time you trade in equity for debt, you are taking a very risky loan. Your home can be seized if you default. As a result, it is critical to make sure you are getting the best deal possible on the loan and getting rates and monthly payments you can afford. When you move quickly, it is more likely you will settle for a less favorable option. Only go through with a fast remortgage if you have an immediate need for cash that cannot be filled by other options.