Competition in the mortgage market is high and banking houses are looking for every new client. While you are paying off your mortgage with your existing bank, a mortgage advisor from a competitor may approach you and offer you the opportunity to refinance your mortgage on more favourable terms. Refinancing means paying off an existing mortgage with one bank with a newly arranged mortgage with another bank. People usually approach mortgage refinancing towards the end of the agreed fixing period. A mortgage specialist may win you over with, for example, a lower mortgage interest rate, the possibility of adjusting the amount of repayments, the possibility of a short-term interruption of repayments in an unfavourable life situation, easier mortgage administration or other advantages.
How much does it cost to refinance a mortgage
Refinancing your mortgage can also be used to get extra money. At the time of refinancing, the client simply borrows additional money to use, for example, for home repairs. Before you decide to refinance your mortgage, ask about the fees – read our article “How to refinance your mortgage the right way”. When you refinance your mortgage, you may have to pay, for example, for the application for the deletion of the original bank’s mortgage and the application for the registration of the new bank’s mortgage agreement, the appraisal of the price of the mortgaged property or the drawing of the new mortgage before the registration of the mortgage agreement at the Land Registry.