Remortgage
Considering remortgaging your home? Our comprehensive guide can help! It outlines the process, benefits, and provides tips for a smooth experience.
Remortgaging means getting a new mortgage on your property. This can be a good way to get money from the value of your property. You can even use it to pay off your debts.
If you go to a new lender, you might be able to get a lower interest rate and pay less each month. Or you can stick with your current lender and switch to a different plan. There’s a lot to think about when you’re choosing a remortgage, but we have a guide to help you make the right decision.
We cover everything from preparing yourself to choosing a new lender. Our guide gives advice to help you with your mortgage journey. Whatever your goals are, our guide can help you remortgage with confidence. Check it out today!
What is a Remortgage
A remortgage is when you get a new mortgage on your home from a different lender, instead of the one you already have. People do this if they want better terms or to switch lenders. They might also do it to get money for house improvements or other important things. To do this, you need to look at your money carefully, research other lenders, fill out forms, and finalize the new loan.
When can you switch to a new mortgage?
Remortgaging is a good idea when you find a better interest rate. This can happen when the market interest rates go down or when a new lender offers a more beneficial deal.
If your financial situation has improved, you may also be able to get a better rate. You may also consider remortgaging if you want to use the equity in your home or combine some debts. However, it’s wise to research and compare several options before choosing the best one for you.
How Does Remortgage Work
Remortgaging means getting a new loan with better terms by evaluating your finances, researching different lenders, completing paperwork, providing documents, and closing on the new loan.
Be careful since some lenders may have additional costs such as exit fees, upfront lender fees, and broker fees. So, review them well before proceeding.
Don’t forget to factor in any outstanding balance on the old loan, and pay it off, including any early repayment charges before setting up the new loan.
How much time does it take to remortgage?
When you apply to change your mortgage, it usually takes 4 to 8 weeks to complete, but this could change depending on your situation. If it takes longer to get the necessary documents or papers, it may take longer to finish.
Remortgage Process
When you want to remortgage your home, it usually takes between 4 to 8 weeks, depending on your situation and the lender’s process. Sometimes it might take longer if there are problems with your property.
First, your broker will find the best rate and apply to a lender. You will need to show proof of income and other financial information, and a surveyor will check how much your property is worth.
The lender will then give you an offer, which usually lasts 3 to 6 months. If you agree, the legal representatives will take over and do some searches with the land registry.
Remortgage Advice
To remortgage your home, think about why you want to do it and explore your options.
Ask a professional for advice about whether it’s better to remortgage or stay with your current lender. Check if you have to pay extra fees if you repay your mortgage early.
Sometimes it’s worth it if you can get a better interest rate. Be sure to read everything carefully before signing, and seek legal advice if needed.
It’s important to make your payments on time, or you could damage your credit score and even risk losing your home.
Final Thought
Remortgaging can save you money on your mortgage by taking advantage of lower rates. Before making a decision, it’s important to understand the process and expenses. A mortgage adviser can help you find the right deal. If done correctly, remortgaging can be beneficial.
FAQ (Frequently Asked Questions)
Do I need a solicitor to remortgage?
If you want to borrow more or change your mortgage deal with your current lender (which is called a product transfer), it won’t cost anything extra. But if you decide to switch to a different deal or lender, you’ll need a solicitor or conveyancer. You can either use the lender’s conveyancer (if they offer this service for your chosen product) or choose your own.
What happens when you remortgage?
Remortgaging means replacing your current mortgage with a new one. You might change banks or stay with your existing lender but choose a new deal. The new mortgage can offer better terms, like a lower interest rate or more flexibility.
Can I remortgage my home mortgage if I have a poor credit history?
You can still remortgage if you have problems with your credit history, but it may not be easy to find a lender who will give you good terms. Your interest rate may also be higher. However, there are some lenders who will consider your situation individually. If you’re worried about your credit history, you can talk to a Connect broker for advice.
Can I use the equity in my current home to get a new mortgage for buying another house?
You can use a remortgage to pay for a second property, but it depends on your situation. You might need to take out extra money from the equity in your current home or use your savings to pay for the rest. It’s smart to talk to a mortgage advisor before buying another property, because you might have to pay stamp duty.
Do you need a deposit to remortgage?
You don’t need to pay any money upfront to remortgage. You usually don’t have to use your savings either. Instead, you can use the value that your property has gained over time.