When should I remortgage?
You could consider remortgaging under the following circumstances, however you should always talk to us before taking any actions so that you get the best advice for your circumstances.
- Your current deal is about to end
- Your home’s value has gone up
- You’re worried about interest rates going up
- You want to overpay & your lender won’t let you
- You want to borrow more
- You want a more flexible mortgage
Can I remortgage whenever I want?
You can remortgage at any time ,but there’s no point in doing it just for the sake of switching to a different lender. You want to choose a time when there’s a positive advantage in moving mortgages. This may be when: interest rates are lower than you’re paying at the moment, when a good fixed-rate deal is about to expire, or when your home has significantly raised in value and you’d like to release some of the equity in the property.
What happens when your fixed-term mortgage ends?
Unless you remortgage to a better deal, you’ll be moved onto your lenders standard variable rate – which is often not a very competitive rate, hence the reason to remortgage.
How long does remortgage application take?
It’s best to start talking to us at least 3 months before your deal is due to end. Getting a remortgage usually takes between four and eight weeks, but it can take longer if there are any complications like not having all your paperwork and proof of income etc ready. The process is likely to take longer if you switch lenders, instead of getting a new deal with your current mortgage company, however that’s not a hard and fast rule and you should let us help you look for the best deal rather than staying tied to one lender.
Is remortgaging easy?
Remortgaging can be an effective way to save money on your monthly mortgage repayments, but it can be hard to work out whether or not it is actually worth it in the long run. That’s where we come in, as we do all the leg work for you and take the hard work out of applying for mortgages.
How much does it cost to remortgage?
You will be expected to pay the cost of the valuation, unless it is offered for free as part of your remortgage deal. Valuation fees vary depending on the size and value of the property but will typically cost from around £250 up to £1,500. After that, there may be legal fees if you’re switching providers too. We’ll help you to work out all the fees associated with the switch, and talk to you about your options for paying those fees upfront or adding them to the mortgage. There’s an increase in providers offering ‘free legals’ and ‘free valuations’ on their products however, so we’ll ensure we consider all possibilities.
Can I remortgage after 2 years?
Your best time to remortgage is as a fixed term deal is coming to an end. You should preferably be talking to us three or four months before that deal is due to end, so we have plenty of time to find you the best deal. Remortgaging too early can trigger early repayment penalty fees, so do make sure you talk to us before you take any actions.
Do you need a solicitor to remortgage?
If you remortgage with your current lender, by simply moving to a new rate or deal, it’s considered a “product transfer” and requires no additional legal work. Otherwise, yes, a remortgage will require you to have a solicitor or conveyancer, to help with the legal side of things.
Will bad credit affect my mortgage renewal?
That depends on whether you’re moving mortgage lenders or sticking with a new deal from your existing provider, and also on the circumstances of how much your credit has worsened since you took out the existing mortgage. Because there’s a lot of factors to take into consideration it’s best to talk to us before starting any applications.
What exactly is remortgaging?
Remortgaging is the term given to the process of switching onto a new mortgage deal – either with the same or a different lender. The most common time to remortgage is when the fixed, introductory, tracker, or discounted rate on your initial mortgage ends.
What paperwork will I need to remortgage?
When applying for a remortgage you’re going to need all the same documents that were required when you first applied for the original mortgage.
Your lender may want to see any, or all of:
- Your last three months’ bank statements
- Your last three months’ pay slips
- If self-employed: your last one to three years’ accounts/tax returns
- Proof of bonuses/commission
- Your latest P60 tax form (showing income and tax paid from each tax year)
- ID documents (usually a passport)
- Proof of address (e.g. utility bills or credit card bills)
- Copy of your credit report
Should I get my house valued before remortgaging?
Whatever your reason, if you decide to remortgage you’ll need to know the value of your home. Remortgaging is different, because in this case your equity is used in place of a cash deposit. Equity is what’s left when you subtract the amount you have outstanding on your mortgage from the current value of your property so you will need to know your home’s new value before you can apply for a remortgage. This doesn’t necessarily mean you have to have it valued before speaking to us if you do have an idea of how much it’s worth, as you may have to pay for a valuation during the remortgage anyway (if there’s not a free one offered by the lender).
Do you need proof of income to remortgage?
Lenders’ requirements for proof of income for mortgage applications will differ. Typically, earned income is evidenced by payslips, if you are employed. The standard requirements are three months’ payslips and two years’ P60s although there are lenders who will accept less than this, and by working with us we can find you the best lender for your circumstances. If you are self-employed, then tax returns and/or accounts will be used, or possible a certificate from your accountant. Your mortgage adviser will be the best person to speak to about what proof you will need for the lender they advise you to go with.
Do you need bank statements for a remortgage?
Typically, a bank would ask for up to three months of your most recent bank statements. We’ll help you to be prepared with your documentation for an application, as there are some lenders who may ask for fewer bank statements than others or indeed some may not even ask for them at all.
Can I remortgage with same lender?
One of the main reasons to remortgage is that you can replace your current mortgage with one that has better terms and conditions. This can result in a lower interest rate, lower fees and lower monthly repayments. You can choose to remortgage with your current lender, but we would look at a range of lenders for you to help get the best possible deal.
What if my house valuation is less than my remortgage offer?
If the mortgage valuation is lower than you expected, then this may affect your remortgage offer, given that it could change the Loan to Value percentage. Your adviser will talk you through the next steps at this stage.
Can I remortgage after retirement?
Some lenders are happy to give mortgages that borrowers will still be repaying after they have retired. If you’ve retired and no longer have an earned income, except for your pensions, we can help you to see if there is still a good remortgage deal for you.