Remortgage Advice
A remortgage is the taking out of a new loan on a property you already own. It replaces your existing mortgage. Why would you want to remortgage? People do it for several reasons:
- To get a better rate with a different lender – you might have started on a certain rate which has come to an end and would mean you switching to the standard variable rate (SVR) and therefore an increase in the repayment amount.
- To change mortgage type – perhaps you had an interest only mortgage and would like to change it to a repayment option.
- To release some funds (equity) – a home improvement project, for example, or a big life event, such as a wedding or university fees.
- To consolidate debt – arranging a new mortgage at a better rate could leave you with a lump sum that can then be used to pay off debts. Any kind of debt financing needs to be carefully considered to ensure you get the best solution for your needs.
- To buy a second property – remortgaging could release some funds to enable you to buy a second property either as a second home or Buy to Let.
Whatever your reason for considering a remortgage, speak to a trusted mortgage consultant first. If your fixed rate is coming to an end, you will need to have your new application in three months before your rate ends. Plus there are certain requirements for all remortgages, including the age of your mortgage, and there may be fees attached to your existing mortgage which make remortgaging prohibitive.
Remortgaging options are plentiful and range from fixed rate to variable to tracker remortgages. There are specific products available for those who have suffered with an adverse credit history – see our bad credit mortgage page for more info.
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When can I remortgage?
Technically, you can remortgage at any time. Some lenders will specify a minimum term of borrowing, others won’t. Some will have an early redemption charge (ERC), or extra penalties if you remortgage too close to the end of your term. All remortgaging carries fees in the shape of arrangement and new mortgage fees so you do need to weigh up whether it’s worth it. Your mortgage adviser will be able to help with all aspects of remortgaging.
Do I really need a mortgage broker to help me?
A whole of market broker can find the best deal for you, regardless of whether you already have a mortgage or not. They will know at a glance the costs involved with each new product and will know the best solution for your reason for remortgaging.
Do I need a solicitor if I’m remortgaging?
It depends. If you stay with the same lender then no, because all the legal checks and surveys have been done. If you are changing lender, then you will need to employ a solicitor, although it is a much more straightforward process as there is no exchange of contracts involved.
How much does it cost to remortgage?
There are many variables when it comes to fees for remortgaging but you will definitely have to pay some. At the very least there will be a mortgage repayment fee, a mortgage broker fee, valuation, survey and solicitor fees. That could cost anywhere between £2200 and £4500. That’s without any penalties levied by your existing lender. So seeking professional advice first is definitely worth it!
How long will it take to remortgage?
Thankfully, not as long as buying a property as there is no exchange of contracts or chain of buyers and sellers. However, there is still a survey to be done and paperwork to be processed so allow 4-6 weeks. Hopefully less than that!
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As our client, we promise to look after your mortgage needs with the highest level of care and attention you expect from a professional advisor, helping to educate you in a down-to-earth manner to make the right financial decisions. Each time you return to us you will receive our expert guidance and advice to ensure that no deadline is ever missed and you never pay a penny more than you absolutely need to.
We will keep in contact to update you on the status of your mortgage and always notify you well before your existing mortgage product is due to expire.
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ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE