Re-mortgage 2020-03-18T13:31:06+00:00

Re-mortgage

For those who already have mortgages, obtaining a new deal at the end of a fixed rate or tracker product can prove difficult with existing lenders not being clear on what is available and new lenders subjecting you to their full application process often with additional loopholes depending on the requirements of your new mortgage.

Whether you want to re-mortgage for home improvements, debt consolidation, a separation or simply to obtain a better interest rate each individual lender will have varying requirements for the application.

You may experience difficulties because your existing mortgage is on an interest only basis and neither the existing provider and/or other mortgage providers are prepared to offer deals on this type of mortgage.

A specialist mortgage adviser can assist with the following re-mortgage enquires:

  • Fixed rate and tracker deals ending
  • Raising money for home improvements
  • Raising money for investments
  • Debt consolidation
  • Re-mortgage due to divorce or separation
  • Interest only re-mortgages
  • Term reduction
  • Product transfers with existing lenders

Our specialist mortgage advisors will assess your existing position and give you the best advice as to whether a change of lender is required, or if a better product can be obtained from your existing lender.

As a mortgage is secured against your home/property it may be repossessed if you do not keep up the repayments.

FAQ’s

This is the most common reason for re-mortgaging. Many of the best mortgage rates only last a short time – often two to five years – the typical length of time offered on a fixed rate, tracker or discount mortgage.
When it comes to an end, your lender will put you on its standard variable rate (SVR). It’s likely to be higher than your old interest rate and higher than the best buys available. If so, you want to be ready to remortgage to a cheaper rate. Start looking around a good 14-16 weeks before your rate ends.
If you are tied into an initial deal then you might have to pay an early repayment charge which can be huge, often 2-5% of your outstanding loan. Plus, there is usually a small exit fee (it might call it an ‘admin fee’ or a ‘deeds release fee’) when you repay any mortgage.
This doesn’t mean you shouldn’t consider it as the savings can be huge (especially if you have a large amount of mortgage debt). You just need to do your sums before taking the plunge. It may be worth only doing at a set point along your mortgage – such as when your existing fixed rate comes to an end, for example.
If the value of the property has risen rapidly since you took out your mortgage, you may find you’re in a lower loan-to-value band, and therefore eligible for much lower rates. Again, you need to do your sums but it’s definitely worth a look.
Before you panic, you need to check what is meant by rates going up. If it’s the Bank of England base rate that is predicted to go up, this may affect your mortgage payments directly, depending on the type of mortgage you have. If it’s the rates that new customers are being offered, then this doesn’t automatically mean yours will be affected.
However, with the continued uncertainty over Brexit we are seeing a large amount of people who want to explore this as an option in case of market variations in the near future.
Perhaps you’ve had a pay rise or maybe you’ve inherited some money. You now want to pay extra, but your current deal won’t let you or it will only let you make a small overpayment.
A remortgage will allow you to reduce the loan size and potentially get a cheaper rate as a result. Watch out for any early repayment charges or exit fees you face, and compare this to how much you’d save with the new, lower mortgage.
Perhaps your current lender has said no to lending you extra money or the terms it’s offering aren’t very good. Remortgaging to a new lender might enable you to raise money cheaply on low rates. But remember to take all the fees into account to see if it really is cheaper than other forms of borrowing.
The new lender will ask you what the extra money is for.
The most commonly acceptable reasons to raise money are for home improvements and paying off other debts. Just be prepared for your lender to ask for evidence if you are borrowing a large amount, e.g. builder quotes, or proof that you have paid off the debts.
Maybe you want to be able to miss a payment. Changing jobs, going back into education, going travelling – whatever the reason, there are mortgages which will let you take payment holidays.
Whatever flexibility you want in a mortgage, chances are it’s out there. Expect to pay for flexible features with a slightly higher interest rate.

Yes, there have been huge technological advances in the mortgage industry over the last few years. The process can now be completed almost entirely remotely. All our advisors are fully equipped to work remotely, and the mortgage lenders have portals which the advisors already use, which allows the application to be completed electronically.  Many lenders also have automated valuation models, so a valuer may not need to visit your property to gain an accurate valuation.  In addition to this, there are solicitors who have an almost entirely electronic process, to complete the remortgage and release funds to you – working with everyone else involved, remotely.

The remortgage process can take as little as 2 weeks but can be longer, this varies lender to lender. If you are coming to the end of your mortgage product, we recommend reviewing this 3-4 months before as mortgage offers are generally valid for 3-6 months. This will ensure a seamless switch from one lender to another, getting you onto your new payment as soon as is possible.

Yes, this is referred to as debt consolidation and is a mortgage that many lenders offer.  Debt consolidation is quite common to reduce monthly outgoings, as it will remove the pressure of having multiple debts to pay each month – with varying amounts and payment dates – leaving you with one monthly payment. Your money can be used much more efficiently each month and, in some cases, you can even reduce your mortgage term this way.

Yes, almost all lenders will allow you to do this. You may need to provide quotes for the work you are having done if it’s something like a new kitchen, bathroom, conservatory etc. If you are planning to extend your property, then it is likely that a mortgage lender would expect you to be at the stage where planning permission had been granted.

Yes, although it does very much depend on the circumstances of the separation and at what stage the process is. One of our qualified mortgage advisors would be able to guide you through this.

If you are taking a like for like mortgage (without any additional borrowing and keeping the overall term the same), we would only offer products which would reduce your payment or the payment you are about to go on to, if your product is coming to an end.  We have access to a range of lenders and so we can ensure we scour the market to get you the best remortgage deal and could even get you a better deal with your existing lender.

Many lenders will offer additional borrowing for many other purposes including helping your family get onto the property ladder, holiday, car, holiday home, school fees, property investment, business purposes and many others. One of our qualified mortgage advisors would be able to assess your requirements and find the right remortgage for you.