Remortgages FAQ – The Ultimate Guide to Remortgaging

What is a remortgage? How long does a remortgage take? Is remortgaging a good idea?

In this guide we’ve answered the most frequently asked questions to help you understand everything you need to know about remortgages.

If you have any questions that haven’t been answered, please don’t hesitate to get in touch with The Mortgage Heroes today – we will be more than happy to help.

What is a Remortgage?

A remortgage is when you change your mortgage without moving home. You either end your mortgage with your current provider and take out a new mortgage with a different lender or alternatively you negotiate another deal with your existing lender.

How Does Remortgaging Work?

In very simple terms, remortgaging works by paying off your original mortgage with the amount you’re borrowing from the new mortgage.

Why do People Remortgage?

People remortgage for a wide range of reasons. Here’s just some of the reasons you might consider remortgaging –

  • Your current deal is about to end
  • You want to move from a standard variable rate to a fixed rate deal so you can be certain of monthly repayments
  • You have found a lower interest rate
  • You want to change to a different type of mortgage (switch from interest only to repayment mortgage, for example)
  • You are wary of interest rates going up
  • Your home’s value has increased
  • You want to release capital in your home (if it has increased in value)
  • You want to raise funds for home improvements to increase the value of your home

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

Remortgaging FAQs

Your individual circumstances and requirements will determine whether it’s worthwhile remortgaging.

For most people, your mortgage is your largest monthly outgoing, so even a small change in the interest rate being paid could result in considerable savings. This is why it can be beneficial to check out deals from other lenders to see if they could help you save money on your mortgage.

You may want to consider remortgaging when your current fixed rate deal ends, you have enough equity in your current property or when you can save money by remortaging with a different deal.

If you can’t find a better mortgage deal than your current one, have a very high early repayment charge or own 10% or less of the property, it probably wouldn’t be beneficial to remortgage.

You can remortgage at any time. We recommend starting the process 4-6 months before your current deal expires.

You should generally start looking for a remortgage deal around 4-6 months before your current mortgage ends so that you have enough time to not only research the market and find the right deal, but also complete the application process in time to make sure your remortgage deal starts just as your current one ends.

Providing that you aren’t locked into an agreement with excessive fees for switching it, it can be valuable to review your mortgage annually. This will ensure you have the right mortgage for your individual needs and circumstances. As we are a whole of market broker we can search the market on your behalf

A deposit isn’t required for a remortgage because you can instead use the equity you have in your current home. However, if you’ve saved money you can add this to the amount so that you can get a smaller mortgage.

Yes – if they’re offering you a better deal, you can apply for a remortgage with your current lender. However, it is worth browsing the market and checking out other lenders to see if there are any better deals for your situation.

The costs involved in remortgaging will depend on your individual circumstances. Possible costs to be aware of include –

  • An exit fee to your existing lender (if changing lender)
  • Mortgage fees and valuation fee to your new lender (if changing lender)
  • Early repayment charge to your existing lender
  • Mortgage advisor fee
  • Conveyancing fee to your solicitor

You can remortgage as many times and as frequently as you’d like. However, you may be required to pay early repayment charges if you are currently on a fixed, capped or discounted deal.

  • An exit fee to your existing lender (if changing lender)
  • Mortgage fees and valuation fee to your new lender (if changing lender)
  • Early repayment charge to your existing lender
  • Mortgage advisor fee
  • Conveyancing fee to your solicitor

A conveyancing solicitor is only needed to remortgage when you switch lender (to help with the legal side of things). However, some lenders will offer a free legal service for remortgage customers.

You won’t need one if your remortgaging with your current lender.

Yes. By remortgaging your home, you’re freeing up the equity in your property (the difference between how much of your property you own outright against what mortgage you still owe).

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

Yes. You can borrow extra funds on your mortgage for a number of different reasons, such as: debt consolidation, home improvements, extensions, to buy a second home or buy to let, holidays or one-off expenditure.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

It is possible to remortgage with bad credit. However, the best deals are unlikely to be available you as your lender will probably want to charge a higher interest rate to counteract the higher risk you present.

Every case is judged upon its own individual merits, but there are likely to still be options out there even if you have bad credit.

If you’re wanting to remortgage before your fixed rate concludes, you’ll most probably be required to pay early repayment charges.

Remortgage Broker UK.

If you’re considering remortgaging your property and are looking for professional help and advice, please feel free to contact The Mortgage Heroes today. We’re a leading mortgage broker in the UK, specialising in helping people to find the most suitable remortgaging deal.

Whether you would like to lower your monthly payment, raise additional funds for home improvements or want to consider your options on consolidating some debt, we have access to thousands of mortgage offers (some of which are exclusive via the Quilter Financial Planning Network), saving you time and money.

01275 405 050
hero@themortgageheroes.co.uk

Heroes available 7 days a week!

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