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If you’re looking to remortgage, there are a few things that you will need to consider. Are you better staying with your current lender or moving elsewhere? How can you secure the best rate? What are the costs involved? If remortgaging is something that you have considered then our remortgage guide is perfect for you.
A remortgage is when you take out a new mortgage on a property that you already own. The property could be mortgage-free or you could still have a mortgage in place. If you have a mortgage in place, remortgaging sees you moving away from your current deal. This may mean changing lenders or it may just mean changing the product.
People have different reasons for wanting to remortgage, but generally these fall under two categories: the desire to cut costs or the desire to access cash:
Cutting costs
You can see your monthly payments being reduced by changing the mortgage product that you have with your current lender. Mortgage products change frequently and it is likely you can find a better deal compared to when you first took out your mortgage. You can also look at cutting costs by moving to another lender completely.
Raise money
It is possible to use a remortgage to release the equity that is in your home. Of course, this means that you will then have less equity in your home, but it can be a great way to fund other projects or even lifelong dreams.
If you have bad credit, there are still lenders who will allow you to remortgage. A poor credit rating may see you paying a higher level of interest or having options that are slightly limited, but it is still perfectly possible. By talking with us, we can run you through all of your options.
When you compare a remortgage to the original mortgage, there is no denying that a remortgage is much simpler and quicker. Once you have found the product that you want and submit your application, it is down to your lender and solicitor to finalise. There are no new contracts to exchange, no house buying chain, and often there are not even any searches required. This all keeps costs down and allows for a super simple process.
Just like applying for a mortgage and buying your home in the first place, remortgaging comes with fees attached. These are the ones that you should be aware of:
Arrangement fees
This is charged by your lender for the privilege of establishing your new mortgage. The amount charged will vary and could either be a fixed amount or be a percentage of what you have borrowed. You will have the choice of paying this upfront or adding it to the term of your mortgage.
Legal fees
You will need a solicitor to finalise your remortgage and to ensure that everything is done correctly. The process is less involved than buying a house in the first place and you should find that what you are charged reflects this.
If you’re thinking about remortgaging, why not speak to one of our mortgage guys so that you can explore your options?
A mortgage is a loan secured agains your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
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number 11085103.
Mainly Mortgages Ltd is authorised and regulated by the Financial Conduct Authority under number 923399 in respect of mortgages, insurances and consumer credit mediation activities only.
Subject to circumstances, a fee may be payable. Typically £99 on application & £600 on completion.
If your circumstances or history involves any adverse credit, complex situations or a commercial element then this may increase to a maximum of £2999 with £99 payable upon application. Your adviser will, in all cases, confirm all costs in writing prior to any application being made
