Why People Decide to Remortgage Their Home
Hi There! Welcome to our blog, which you will hopefully find very educational.
For most people, their homes represents the largest portion of wealth; they get a mortgage so that they can acquire the building, and then they spend years paying it off so that they own it out-right, and so that they don’t have to pay interest on their loans. This all sounds very reasonable, so you might ask why people would want to re-mortgage their home.
The answer usually comes down to their plans in life; it could be that they’re trying to build a business, and they don’t have the necessary relationship with their bank to get a business loan that will cover it, or it could be that their children are looking for a deposit on their own home, and they don’t have the cash spare to do it.
As has been said, a home is usually a persons most valuable property, so getting a loan with that as the collateral gives them the opportunity to get more liquidated cash than they are likely to get otherwise.