Remortgage

Let us explore your options in advance, and find the most suitable mortgage for you.

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Is your existing mortgage deal coming to an end soon?

If so, now’s the best time to explore your options and avoid moving onto your current lenders standard variable rate. Variable rates tend to be a lot higher than your existing rate, so if saving money is important to you, reviewing your options in advance is key to ensuring you don’t spend more than you need to.

Your mortgage is one of your biggest financial commitments, so it’s important to review things each time a rate deal period is coming to an end. This is also an opportunity to borrow more for home improvements, a new car, or even reduce your mortgage term so your mortgage can be paid off quicker.

We are here to help you find the most suitable mortgage for you, whether that be switching lender (a Remortgage) or sticking with your existing lender (Product Switching/Transfer). We have put together some useful information the help you better understand how the Remortgage or Product Transfer / Product Switch process works and what to expect..

What Is a Remortgage?

A remortgage is where you are switching your mortgage from your existing lender to a new lender. Many homeowners opt to do this to get a cheaper interest rate and lower their monthly payments or release some cash from their home to pay for home improvements or fund a lifestyle decision. Some even use this opportunity to reduce their mortgage term so they can pay off their mortgage quicker.

Think of it like searching for a new energy provider who offer a cheaper package, or cheaper car insurance. Sticking with your existing lender isn’t always the most suitable or cheapest option. The mortgage market is competitive, and rates change often with very little notice, so it’s worth speaking to a mortgage advisor who can use their expertise to ensure you get the cheapest mortgage for you and your own personal circumstances. Choosing the wrong mortgage deal could be costly.

No one likes to pay more than needed for anything in life so reviewing your biggest monthly commitment is one way of ensuring you don’t.

When is the most suitable time to Remortgage?

A remortgage may be suitable for you if:

Your introductory deal on your existing mortgage is due to end soon and you want to avoid being switched onto your lenders Standard Variable Rate (SVR). Standard variable rates tend to be higher than your current deal which will result in higher monthly payments. We advise you to start thinking about things at least 6 months before your existing rate is about to end. This gives you more than enough time get everything in place, so you don’t need to spend any time on the standard variable rate.

You want to raise cash to fund a home improvement project.
You could have debt you wish to consolidate. We strongly advise speaking to a mortgage advisor if this is something you wish to do. It’s important you fully understand the risks involved with debt consolidation before making the decision.
You might want to gift your children with some money for a deposit, or pay for school fees, or other upcoming expenses like a wedding and so on.
You might want to review your mortgage term and reduce this. You could be on, let’s say a 25-year mortgage term and wish to reduce this to pay off your mortgage sooner.
Your home could have increased in value giving you a better LTV (Loan to Value) and you want to benefit from the lower LTV (Loan to Value) mortgage rates.
Product Transfer/Switch rates offered by your existing lender might be higher meaning a remortgage would be more cost effective.

There are many other reasons people choose to explore a remortgage as each case has is different. Speaking to a mortgage advisor will help you better understand your position and whether a remortgage is the most suitable option. Especially if you have ERC’s (Early Repayment Charges) attached to your existing mortgage.

If you are considering a remortgage because you want to raise cash and if a remortgage isn’t the most suitable option, you may want to find out more about a further advance or second charge mortgage. We are here to help you fully understand what would be best for you and your personal circumstances.

The Remortgage process end to end

6 months before your deal is ending. Contact a mortgage advisor who will discuss your situation, assess affordability, discuss your future plans as this can play a role in deciding what type of rate you choose.
Once your mortgage advisor has all the information they need they will then look at all the options which are the most suitable for you including what your existing lender can offer you and compare. You can then discuss everything with your mortgage advisor and decide on which type of mortgage deal you wish to proceed with.
If you are switching lender you will need to provide evidence of income, bank statements and ID.
Once the mortgage application has been submitted it will need to be underwritten by the lender. They will also instruct a valuation and the Solicitors/legal firm (see more on valuations and solicitors below)
Remortgage Valuations: These are nearly always offered free of charge by most mortgage lenders. There is the odd lender who might charge a fee, but this would be discussed with ahead of time with your mortgage advisor. Many remortgage valuations are carried out remotely (known as a Desktop Valuation) so there won’t be any need for you to book an appointment with a valuer, and some are drive by valuations. IF, however, you have done significant work on your property which wouldn’t be known to a valuer then it would be better to book an internal inspection which can be discussed with your mortgage advisor in advance so they can relay this information to the lender. This is generally done when your property has increased in value by more than the national average and you need the new true value to be agreed so you can access the better LTV (Loan to Value) rates. A desktop or drive by valuation wouldn’t necessarily see the rear extension you have done.
Solicitor/Free Legals. The lender will have a panel of firms who they allocate their remortgage business to. These are independent from the lender. There will be some forms (mainly online now) for you to complete. You’ll get much of the conveyancing for free as part of what the lender offers, but if there are other things outside of the standard process, they could charge small disbursements. They will always send you a list of possible charges ahead of time. Whenever you switch lender, you must have a solicitor or conveyancer to do the legal paperwork so you can transfer from one lender to another. You do not have to use the free legals offered by a lender. Lenders can offer the same rates without free legals, where you can opt to use your own conveyancer. This will of course be an added cost to you but there are many reasons people do take this option. Most people remortgaging do choose to use free legals.
Once your remortgage has been underwritten, and the valuation has been carried out, and providing everything is how it ought to be, the lender will then issue a mortgage offer.
Once you have been offered, it’s down to your legal firm/solicitors to carry out the necessary work in time for completion. When you are completing the forms for the solicitors/legal firm please check that you are providing them with the correct date that your existing mortgage deal ends. If they are given the wrong date and completion takes place sooner than the end date of your existing mortgage deal then it’s possible you will have an ERC (Early Repayment Charge) to pay. Your solicitor/legal firm should inform you if there is an ERC to pay but our advice is to check and double check the date you give them. Your mortgage advisor should talk you through this process before you proceed with a new mortgage application.
Completion day. You will be informed in advance of the completion date by your solicitor/legal firm. Completion often takes the place close to, or on the same day the direct debit is due to be taken by your existing lender. It is very common for this to happen, and your existing lender will refund you anything that is overpaid. They will usually refund within 5-10 working days of the account being closed. It VERY important that you do not cancel any direct debits with your existing lender until they have confirmed that your mortgage account has been closed. If you do cancel your direct debit and your mortgage payment is due around the time you complete there is a chance it could damage your credit profile and show as a missed or late payment. Your mortgage advisor should talk you through this part of the process way ahead of time, so you understand everything.
Once completion has happened, you are now switched to the new lender and can relax until your next mortgage rate review. We always contact our clients at least 6 months before their rate is due to end so we can ensure they are aware and can get things moving to secure a new rate.
The remortgage process is also a good opportunity to review your existing protection policies, like life cover, critical illness, home insurance and income protection. If you remortgage and borrow more money, do you have adequate protection for the increased borrowing? Has your income changed since you started your original policy/ies? The reason you took out these policies in the first place was to give you peace of mind and protect you financially should the worst happen, so why not make sure they are still giving you and your family the most adequate level of protection We offer a protection review with every remortgage we do for our clients. You are not obliged to change anything but it’s important to be sure you have the cover you need.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.