What is a remortgage?
A remortgage is when you switch your existing mortgage to another lender, or you negotiate another deal with your existing one.
Why should i remortgage?
Whether you should remortgage or not will depend on your individual circumstances and needs. If you have found a lower interest rate and it’s financially the better option then it might be more suitable for you to remortgage. You also might want to remortgage for the following reasons:
- You’re on a standard variable rate and want to move onto a fixed rate deal so you can be certain of your monthly repayments
- To release equity in your home if it has gone up in value
- To fund home improvements
- Your current deal is about to end
- You want to borrow more money
- You want to switch from interest only to repayment mortgage.
- You have found a lower interest rate
- Your home’s value has gone up
- You’re wary of interest rates going up
When should i remortgage?
You can remortgage at any time, however, it may not always be the right time. You may want to consider:
- When your current fixed rate mortgage deal ends
- When you can save money by remortgaging, even after paying arrangement and exit fees.
- When you own enough equity in your current property.
When shouldn’t i remortgage?
When weighing up whether to remortgage, you need to consider money, timing and your personal circumstances, as well as the following scenarios:
- If your current mortgage deal is better than any other mortgage product on the market
- If you have a very high early repayment charge and it would be cheaper to wait until the end of the incentive period
- If you own 10% or less of the property as you may find it difficult to get a good new mortgage deal.
Where can i get a remortgage from?
You can apply for a remortgage from either your current lender if they’re offering a better deal or another lender.
You can remortgage with a bank or another financial institution such as a credit union, a building society or specialist mortgage lender.
How much could i borrow?
How much you can borrow will depend on your individual circumstances and the amount of equity and deposit you have. If you speak to one of our advisers they will be able to assess your situation and find out how much you can borrow based on your current situation.
Will i be credit checked?
Just like with your current mortgage, you will be credit checked by your lender once you submit your application.
Where can i find out my credit rating?
You can find out your credit rating through Experian and Equifax who are credit referencing agencies and will send you a valid credit report.
What costs are involved in remortgaging?
The costs involved in remortgaging will depend upon your individual circumstances. Possible costs to look out for are:
- Early repayment charge to your existing lender
- An exit fee to your existing lender
- Mortgage fees to your new lender
- A valuation fee to your new lender
- Conveyancing fee to your solicitor
- Mortgage adviser fee
For further information call: 01789 201 914
Or email: email@example.com
Contact our expert advisers now
Call free from landline or mobile
Not the right time for a call? Email us and we can arrange a good time to discuss your needs
Every now and then, everyone needs a little pick me up, including your home. Over the years, scuffs and scrapes can make a house look untidy and you can soon fall out of love with your home, which becomes a place just to rest your head, rather than a space to relax...
As we’ve seen from our previous article, there are many reasons why you might want to buy a new build home. Many people like the fact that the property comes with the safety net of guarantees, plus you can choose your own fixtures and fittings that suit your style,...
Just like everyone has their own style when it comes to fashion, it’s the same when it comes to houses. Some people prefer period houses that have character and unique features, whereas others might prefer a new build property with a clean, modern look and feel that...
While moving home can be one of the busiest and most stressful times in your life, sorting out your mortgage doesn’t have to be. In fact, mortgages can be pretty straightforward when moving home, whether you take your current mortgage with you to your new property or...
We all know that feeling when your house becomes so full that you feel like you can’t see the wood for the trees. If this sounds familiar to you, then it’s time to sit up and finally de-clutter your house, once and for all! Over the years, your belongings build up....
How To Guides
Is it your ultimate dream to one day design and live in a home that you’ve created yourself? But perhaps the thought of going into the unknown is putting you off making it happen? In this article, we’re taking a closer look at the journey of a self-build project…
Buying, renovating and potentially furnishing a property is an expensive process and it’s natural to want to keep costs as low as possible, particularly if you are trying to make a limited amount of capital stretch far. However, as legions of landlords before you have learned…
Have you been rattling around your big, old house for quite some time now? If so, downsizing might be the right thing to do. A driving force for many to downsize is an empty nest. If the kids have grown up and moved on, having to look after a big, empty house can become a burden.
A fee of up to 1.5% of the mortgage amount may be charged depending on individual circumstances. A typical fee is 0.67%.