If a borrower is ahead of their repayment schedule, they may qualify to reamortise their loan, which will reduce their monthly repayment amount.
Borrowers can reduce their balance by making additional payments, increasing their monthly direct debit amount or by paying a lump sum on the balance. Once they have done this, they have two options:
- Reamortise the loan, which allows them to make reduced monthly repayments for the remainder of their loan term, or
- Finish repaying the loan early with no early termination fees, thanks to the extra repayments they’ve made
Reamortisation is a great option for borrowers who want to increase their monthly cashflow during their loan term thanks to a lower required monthly repayment. In some cases, a lower required monthly repayment may improve serviceability for a new mortgage as well, so your customer can buy the right property at the right time.
With Plenti, borrowers are able to reamortise their loan right from their borrower portal. There’s no requirement for phone calls, emails, or in-person signatures.