Remortgaging Made Easy: Your Ultimate Guide
In this comprehensive guide, we'll take you through the remortgaging process step by step, ensuring you understand every aspect. Whether you want to secure the best rates, borrow more money, or simply improve your financial situation, we've got you covered.
Understanding Remortgaging
Remortgaging is the process of moving from your current mortgage on your existing property to another, whether with the same or a different lender. This new mortgage then replaces the old one. Staying with the same provider can be costly in the long run, as your current fixed rate ends, you will automatically go onto their Standard Variable Rate (SVR), which is typically higher than the original rate, so it's always advised to review your mortgage before your current rate comes to an end. But what does the remortgaging process entail, when is the best time to remortgage, and what else do you need to consider as part of the process?
Why Remortgage?
1. Best Rates
Securing the best rates is often the primary motivation for remortgaging. As interest rates fluctuate, you may find that better deals become available, allowing you to reduce your monthly repayments and potentially save a substantial amount over the life of your loan.
2. Borrow More Money
If you have plans for home improvements or need to consolidate existing debts, remortgaging can provide you with the opportunity to release equity from your property. This can free up capital, giving you the financial flexibility to pursue your goals.
3. Financial Sense
Assessing the cost of remortgaging is crucial. It's essential to consider factors such as fees, early repayment charges, and the overall outstanding balance on your current mortgage. Making a move that makes financial sense can help you achieve your long-term financial objectives.
Expert Guidance is Key
Navigating the world of remortgaging can be challenging, which is why using the services of an expert mortgage adviser is invaluable. An independent mortgage broker can conduct a comprehensive search across the market, ensuring you get access to the best remortgage deals tailored to your circumstances. Their expertise allows them to provide advice that aligns with your product features preferences, be it a fixed rate, tracker rate or something else. Have a look at our top 5 reasons to use a mortgage broker for more information.
The Remortgage Process
Step 1: Assess Your Current Deal
Begin by understanding your existing mortgage terms, especially if you're on an introductory deal. Your current lender may notify you in advance of your deal's expiry date, which is an opportune moment to explore your remortgaging options.
Step 2: Gather Your Documents
To streamline the mortgage application process, gather essential documents such as bank statements, payslips, and proof of regular outgoings. These documents are critical for the eligibility and affordability checks performed by lenders.
Step 3: Seek Mortgage Advice
Engage with a qualified mortgage adviser who can provide personalised remortgage advice. Their expertise will help them make a recommendation that aligns with your financial goals.
Step 4: Mortgage in Principle
Upon assessment of your documents, you'll receive a Mortgage in Principle (MIP), offering an indication of the amount you might borrow. Although not binding, this step provides a useful reference.
Step 5: Property Valuation
A valuation of your property is necessary to determine its current worth. This is a pivotal factor in securing your desired mortgage amount.
Step 6: Mortgage Application
Submit your mortgage application, including details about your income, expenses, and credit history. Having evidence of responsible financial behavior can increase your chances of approval.
Step 7: Receive the Mortgage Offer
Upon approval, you'll receive a mortgage offer specifying the approved amount and conditions. Review it carefully and ensure it aligns with your expectations.
Step 8: Solicitor's Role
If you're changing lenders and the lender isn't offering to pay for the legal work, enlist the services of a solicitor or conveyancer who will handle legal aspects, including the transfer of property ownership and the finalisation of paperwork.
Step 9: Repayment and Registration
Your solicitor will use the new mortgage funds to pay off your old mortgage, and the new mortgage will be registered at the Land Registry.
Pros and Cons of Remortgaging
Understanding the pros and cons of remortgaging is vital. While it can lead to savings, improved finances, and the flexibility to fund home improvements, it's essential to factor in potential associated costs such as fees and early repayment charges.
Ready to unlock your financial potential? Contact us today to speak with an expert mortgage advisers. We'll guide you through the remortgaging journey, ensuring you secure the best rates and make a decision that aligns with your financial goals.
Remember, remortgaging is a significant financial step, and careful consideration, expert advice, and a comprehensive understanding of the process are key to your success.
Important Information
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You may have to pay an early repayment charge to your existing lender if you remortgage.
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Your home may be repossessed if you do not keep up repayments on your mortgage.
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There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
If you don't want to find yourself out of pocket, you need to be reviewing your mortgage when a fixed deal comes to an end.
Using A Remortgage For A Buy To Let
Interested in making your money work for you? Remortgaging is a great way to raise capital towards more property investments, potentially leaving you with a more than comfortable income from your property portfolio. Head to our page on Buy-To-Lets to find out more.
David Williams trading as Greymere Finance (FCA No.944564) is an Appointed Representation of Julian Harris Mortgages Ltd (FCA No.304155) which is authorised and regulated by the Financial Conduct Authority No. 304155
Whatever type of mortgage rate you prefer, we've got you covered. The tables below show you this weeks best buys on offer.
Looking for a mortgage broker in Chester, Wrexham, Flintshire or Denbighshire? Greymere Finance offers mortgage advice both locally and nationally.
A few things to remember when considering which type of mortgage is right for you
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Interest rate isn't everything. Look at the total amount you're going to repay over the initial period. This takes into account the monthly repayment, any fees and any cash back incentives.
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Initial terms vary and comparing a 2 year, 5 year or 10 year isn't as simple as looking at the rate or total to repay. This needs careful consideration about your future circumstances. Also check out our guide on which type of mortgage is right for you
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While best mortgage rates give a good idea of the market, this doesn't mean all rates will be available to everyone. Each lender has its own criteria which might consider someone's credit file, their job, the type or size of a property or your affordability.
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If in doubt, just ask. We're happy to help.
Based on a mortgage of £125,000 at 50% LTV
Initial Rate | Fixed Till | Then |
|---|---|---|
4.49% | 01/10/2029 | 7.99% |
4.48% | 31/07/2029 | 6.99% |
4.48% | 31/07/2029 | 8.24% |
* Rates updated weekly each Monday and based on cheapest products available. Products you can obtain may differ.
Check out our mortgage calculator to see what you might be able to borrow
Contact us to get the best rates on 01244 267682