REMORTGAGE

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Remortgaging can help you save money on your monthly repayments, raise the money to pay off some existing debts or fund something like a home improvement project. It’s not suitable for everyone though. We explain when remortgaging is an option, what happens, the process you go through and the costs you may incur.

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How Does Remortgaging Work

Remortgaging is where you take out a new mortgage with a new lender on a property you already own and have a mortgage on. The new mortgage takes the place of the mortgage you originally had on the property.

 

New to Remortgaging?

 

Remortgaging is keeping with the same property but changing your mortgage from one mortgage lender to another. Although not suitable for everyone there are couple of reasons to consider a remortgage.

Better Rates

Remortgaging can help you save money whether you are about to end your current fixed rate mortgage or are already on the lenders standard variable rate. Rather than move into your lender’s standard variable rate, which is usually considerably higher than their introductory interest rate you could potentially change lenders to carry out a new mortgage. It however also may be possible to switch to new deal with your current lender and worth exploring this first. 

You should consider remortgaging and moving your mortgage to another lender in the event that your current lender does not have good or acceptable rates on offer. However before you make any final choices, you may want to talk to a mortgage broker who can help compare prices for you. 

Debt Consolidation

Remortgaging can allow you to consolidate other debts, including car loans or credit card balances. You may be able to release some of the equity in your house so you use the excess cash to pay off the other loans, consolidating them together into one the new bigger mortgage. 

Before remortgaging to pay off your existing loans, we recommend that you think carefully. It may help you consolidate what you owe and stick with payment timelines, but mortgages are much longer loans than credit cards and personal loans, so you can end up spending more overall, despite the fact that they typically come with far lower interest rates. 

Nevertheless, sometimes it may just be the right decision. Before you agree to consolidating your loans, it's necessary to seek advice. Your property may be repossessed if you do not keep up repayments on your mortgage.

Raise Capital

An increase in the value of your house means you may be able to remortgage and release more capital to help pay for big outgoings, such as home renovations, a wedding or the expense of college for your children. This could save the need for a separate loan. There may be alternative sources of additional finance so these need to be considered as well.

Home Improvements

To raise the funds for renovations, you may remortgage your home. Remortgaging can be a simple means of funding an extension, improving the kitchen or adding a second bathroom. That way you don't have to move home and relocate to fulfil changing needs. 

Remortgage Timescales

 

As mortgage offers can take up to 3-4 weeks and the legal work 2-3 weeks you can start to organise your next mortgage up to 6 months before the end of your existing one. We can search the market to find the right remortgage deal for you. If happy to proceed the following process takes place.

A redemption certificate will need to be obtained by you which will show any fees required to repay your current mortgage as at a specified date. If you are happy with this we will present your current situation to the new lender for a Decision in Principle. If successful we will take you through the full application, including any documentation required, and submit it on your behalf.


A valuation report will be requested by the new lender and your solicitor will request the title deeds.
After approval is given you will arrange a completion date with your solicitor.

Early repayment charge 

If you are currently in a fixed rate deal there is usually an early repayment charge if you terminate the mortgage within this. We can help manage the process so your new mortgage starts as soon as your current fixed rate ends. This will avoid paying any unnecessary early repayment charge on your mortgage. 

or alternatively, call us now on 01803 303909 to speak to an advisor.

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

Some buy to let mortgages are not regulated by the Financial Conduct Authority.