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.
Frequently Asked Questions
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.
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.
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.
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.
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.
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.
