Remortgage FAQ's - All you need to know.

Remortgage FAQ’s – All you need to know.

Are you interested in gaining a comprehensive understanding of the remortgage process in order to avoid incurring higher interest rates once your current agreement expires? Alternatively, perhaps you are contemplating the possibility of remortgaging your property to finance the purchase of another property or to undertake home improvements.

The remortgage process can be quite daunting, particularly when you are in the midst of relocating or seeking additional funds. It is crucial to seek guidance from a seasoned mortgage broker who can alleviate your concerns and potentially help you save money.

Let’s delve into the complete remortgage process and address common queries.

What is a remortgage?

Similar to a mobile phone contract, a remortgage involves securing a new deal with your mortgage provider. By committing to a fixed term, typically 2 to 10 years, you can benefit from lower interest rates. However, early repayment charges may apply if you decide to end the contract prematurely.

Why is remortgage advice important?

When your current mortgage deal ends, you have two options: change the product with your existing lender or move to another lender offering a better deal. While changing the product with your current lender may be quicker and involve less paperwork, it often comes with higher rates. On the other hand, moving to another lender can provide access to more favourable mortgage products, but it requires additional underwriting, property valuation, and legal work.

How does remortgaging work?

The remortgage application process is similar to any other mortgage application. The main difference is that you don’t have to deal with a property seller or estate agent, which expedites the completion process.

How much can I remortgage my house for?

The amount you can borrow through remortgaging depends on factors such as the value of your house, your affordability, and the reason for remortgaging. Most lenders offer remortgage products up to 90% of your property value, but your borrowing capacity is subject to affordability assessments.

How does remortgaging work to buy another property?

Remortgaging to release equity for purchasing another property is generally straightforward, provided you meet the lender’s criteria. However, if you plan to let out your current property and buy a new residential property, additional considerations come into play, such as finding lenders who offer let-to-buy mortgages and coordinating both mortgages with the same solicitor.

How long does it take to remortgage?

The duration of the remortgage process depends on whether you’re transferring products with the same lender or switching to a new lender. Product transfers can be completed within two weeks, while switching to a new lender typically takes 6 to 8 weeks due to the need for underwriting, property valuation, and legal work.

When should I start the remortgage process?

It’s advisable to start exploring remortgage options at least six months before your current deal expires. This allows ample time for research, decision-making, and handling the legal process. Waiting until the last minute can lead to stress and potentially higher interest rates.

Can I remortgage early?

Remortgaging early is possible, but it’s crucial to inform your solicitor not to complete the process until your current deal expires. Failing to do so may result in early repayment charges.

Do I need a solicitor to remortgage?

If you’re switching to another lender, involving a solicitor is necessary. However, many lenders offer free legal services or cashback options with their remortgage products, simplifying the conveyancing process.

What are the costs involved?

Common remortgage costs include lender arrangement fees, valuation fees (often waived by lenders), and legal fees. It’s essential to consult with your mortgage broker to determine whether paying arrangement fees or opting for a fee-free mortgage deal is more cost-effective. In conclusion, the remortgage process can be complex, but with the guidance of an experienced mortgage broker, you can navigate it smoothly and potentially save money.

#get in touch

Ready to get started ?

Speak to a MyContractorBroker specialist on 02394 211120

#get in touch

Ready to get started ?

Speak to a MyContractorBroker specialist on 02394 211122

Scroll to Top