Here’s what you need to know about remortgages.
Are you looking to remortgage to raise funds for home improvements, consolidate debts, or simply securing a better interest rate, as your current deal ends? I can help.
I will review your existing mortgage to compare deals available to you from your current lender against many other mortgage lenders on my panel. Sometimes it may be better to stay with your current lender because of changes to your circumstances, if so, I’ll secure the best rate and handle the product transfer for you.
If a better mortgage rate is available by switching lenders, I’ll help you to secure the fixed rate with another lender and take care of all the necessary paperwork.
01 What is a remortgage?
- A remortgage is when you switch your existing mortgage to a new deal with a different lender. This process can help you get a better interest rate, release equity from your property to raise funds for home improvements and consolidate credit card and loan debts.
02Why should I remortgage?
- Typically, people remortgage to secure a lower interest rate, release equity from their home to undertake home improvements, consolidate existing debt or simply switching to a different mortgage type that better suits your needs.
03When is the best time to remortgage?
- The best time is usually when your current mortgage deal is about to end typically at the end of a fixed-rate period. It is advisable to start the process 6 months before your mortgage rate ends, so that you have plenty of time to prepare and thereby avoid reverting to a higher variable rate.
04How do I know if remortgaging will save me money?
- Compare your current mortgage rate with new deals available. Factor in any fees associated with remortgaging to see if the savings outweigh the costs. Your lender will usually provide you with an alternative deal however the rates provided by them will mirror their standard variable rate (SVR) shown in your mortgage offer. I can help you to compare the market to make sure you secure the best mortgage rate available to you.
05What fees are involved in remortgaging?
- This depends on the lender. Typically, fees involved may include an arrangement fee, valuation fees, legal fees, and any early repayment charges (ERC) from your current lender. Some new deals may offer free valuations or legal services. I will help you to secure the best deal that is available and advise you on any ERC’s payable.
06Can I release equity through remortgaging?
- Yes, you can increase your mortgage amount to release equity from your property, which can be used for home improvements, debt consolidation, or other purposes. However, there are certain things that you cannot raise additional funds for. I can provide you with further information in relation to raising additional funds.
07What documents do I need to remortgage?
- Typically, you’ll need proof of ID, proof of address, bank statements, proof of income (payslips / SA302’s / accounts), as well as details in relation to your financial commitments and existing mortgage.
08Will my credit score affect my ability to remortgage?
- Yes, this can have an impact on your ability to remortgage. However, there are lenders who will consider applicants with adverse credit. A higher credit score can improve your chances of getting better rates and terms. There are some lenders who don’t’ credit score but instead credit search. This can be a complex area so I would recommend you speak to a mortgage adviser. I am happy to explore this with you, to get the best mortgage deal available.
09How long does the remortgaging process take?
- The process typically takes between 4 to 12 weeks, but it can vary depending on the complexity of your case and how quickly you provide the required documentation and how busy the lender is.
10Can I remortgage if my property has decreased in value?
- It might be more challenging if your property value has dropped, as you may not have enough equity. However, it’s still possible depending on your remaining mortgage balance and the new lender’s criteria. IF it’s not possible to remortgage, the alternative would be to secure a product transfer, where you remain with your existing lender. I can help you secure the deal on offer via your current lender and sort out the paperwork etc.