A remortgage, also known as refinancing, is the term given to the process of obtaining a new mortgage to pay an existing one. Since a mortgage is tough to get for the self employed, the process can be equally as frustrating for a remortgage.
Actually getting approved for the remortgage loan you wish to obtain can take time. While you should be able to get closure within six weeks or so, the actual time it takes will vary from one lender to another. It would be best to submit an application to various lenders and mention that you are doing so- that way lenders will try to get you through the mountain of paperwork more quickly.
There are several reasons on why a remortgage would help you out. The biggest reason usually deals with interest rates. Interest rates tend to fluctuate, and unfortunately some lenders lock in the interest rate once the borrower is signed on. Through a remortgage, you can sign on with a new interest rate. If the difference is big enough, you could save hundreds to thousands of dollars.
Your home equity will be built much faster when you find a cheaper interest rate. Whereas you will be paying more of your resources to your original mortgage, a refinanced mortgage will save you money and allow you to pay it off more quickly. With more money invested in your house, the equity will be greater, and you will have more "worth" to speak of.
All of the paperwork you did in obtaining the first mortgage loan will be necessary in digging up for applying to the second mortgage loan. If you still have your papers from the first time around, the task will be much easier and will help reduce the time and effort you put in. Otherwise you will have to go through the motions of finding all of your details again- from reports on your taxes to any debts you may still have.
Even if you are self employed, getting a self certified mortgage loan for the second time won't be difficult. Indeed, it will at least be easier than pitching the idea for the first time since you have already shown good faith in paying the previous lender. Try to barter if you can, and do look for a lender that offers variable interest rates so you won't have to refinance again in the future.
Final Thoughts
A self certified remortgage loan is only offered by a handful of lenders. Your best bet is to look on the Internet for the names of lenders who would gladly take your application. In just a few minutes, you can have a definite answer to all of your questions.
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