Remortgage Process
Remortgaging is when you switch from one mortgage lender to another. It is a good way of saving money and raising capital.
Previously homeowners kept their mortgage with the same provider for the duration of their mortgage term, but more people are realising the advantage of remortgaging. It allows them to consolidate outstanding loans, reduce their monthly repayments and raise cash for home improvements or for other purposes.
Thousands of homeowners are reducing their monthly repayments and releasing the equity in their houses, by shopping around for the best rates. For a free online, no obligation quotation for remortgaging Click Here
Where do I look?
Lenders are now making the remortgaging process even easier by having the service available over the phone, on the internet and in branches of high-street lenders.
Where do I start?
If you are looking to remortgage your home, the first step is to get a mortgage redemption statement from your current lender. This gives you an idea of how much has been repaid on your original loan, how much is outstanding, and what redemption penalties you may incur.
Find out what interest rate you are currently paying and if you can improve on it. Speak to lenders or a broker about what type of deal will suit you. Look at deals that do not have lock-in periods, as you may wish to remortgage again in the future.
You will also need to look through financial ads in the papers, teletext, looking for attractive remortgaging deals. Also talk to as many potential lenders, and impartial advisers as possible.
What steps are involved in remortgaging?
If you wish to switch to a new lender, the procedure is easier than buying a new home as the property deeds will already be registered in your name, and you don't pay stamp duty.
- A valuation survey will be required by the lender on your property.
- An application will have to made to the lender in the usual way, providing evidence that repayments have been maintained. The lender will then issue you with an offer.
- A solicitor will have to be employed to carry out the conveyancing process and to organise the repayment of your existing mortgage.
- If you are borrowing extra funds, the solicitor will release these either on completion or shortly after completion.
If you want to change to a different deal but stay with your existing lender, the process is even simpler.
What are the costs?
Remortgaging should be less costly than when buying a property, as the following charges either won't apply or will be lower than when you first purchased your mortgage. These include:
- Stamp duty - this is not payable when remortgaging.
- Legal fees - solicitor's costs could be lower than when purchasing the property, as the legal process is simpler for remortgaging.
- Homebuyer's report or survey - if you had a homebuyer's report or full structural survey when you purchased the property, it is unlikely that you need another report when remortgaging.
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Other costs - may apply on some remortgage deals, but your new lender may meet some or all of these. Other costs can include:
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Early repayment charges (applicable in some cases).
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Lender's arrangement fees.
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Higher Lender Charge (in some cases).
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Discharge fees from your old lender (often called a 'sealing fee').
Find out what incentives the new lender has to offer on costs.
If your new lender will not meet all or some of the early repayment charges on your existing deal, consider the extent to which (if at all) this may reduce the potential savings to be gained by remortgaging.
Remortgaging could help you escape to a better deal.
None of the information on this website is intended to promote any specific remortgage product or provide remortgage advice. Poor-credit-remortgage.co.uk is a non-regulated trading name of Sitefinders Net Ltd. Your home is at risk if you do not keep up repayments on your mortgage or other loans secured on it. |
