The Remortgage Process
1. Get started
Learning about you and your circumstances will allow us to find the right deal for you based on your remortgage requirements.
2. Your offer
We’ll help to complete the application process with the necessary documents, solicitors and conveyancers to get your remortgage ready for completion.
3. Pay Off
Your new mortgage deal will then pay off your previous mortgage loan and you will be secured into your new monthly payment plan.
Should I Remortgage?
There are a few reasons why you would need to remortgage your property and these depend on what you would be looking to achieve from switching your mortgage to another lender or securing a better deal with your current lender. If you’re coming towards the end of a period with your current lender, whereby you have a fixed rate mortgage or a tracker mortgage (that ‘tracks’ the Bank of England base rate), you could be moving into a new period where your lender begins to charge a ‘standard variable rate’ that is, annoyingly, at their discretion. This would mean you could save money by shopping around and securing a new deal with a better rate or more flexible terms to suit you.
More reasons to Remortgage
When considering home improvements, it’s a good idea to look into whether remortgaging could be the perfect option for you. Let’s say you are looking to complete £30,000 worth of renovation to your home, and you owe £120,000 on your current mortgage as it stands.
In this situation, you could look into switching to a new deal worth £150,000 - using £30,000 of the money to invest into your home and the rest to continue paying off your mortgage. Be aware that your monthly payments may increase to accommodate for the higher loan value, but you could receive a better rate or more flexible terms to support your future plans.Close
Paying off your debts
If you have credit card and/or loan debts that you are paying off alongside your mortgage payments, you could benefit from remortgaging your property and increasing your loan amount to cover your existing debts, therefore consolidating all of your...
debts into one lump sum via your home. Depending on your current APR rates, and the deal you find for your new mortgage, you could find yourself paying a lot less over the course of your term for your combined loans if you decide to remortgage your property.Close
Lending with big names
When trying to secure a remortgage deal, it’s important that you have a wide range of lenders to choose from, providing you with different payment plans that could further improve your deal. With our whole of market access, we’ll be sure to find the right plan for you.
Looking to remortgage your buy to let property?
Get in touch today and see how we can save you money on your property investment mortgage.
Remortgage Advice in Essex
As complex as the remortgage process is, our free initial remortgage advice can help you get your head around what your next move for your finances should be in Essex and the surrounding areas. Whether you’re looking to get a better deal, make home improvements, consolidate your debts or add/remove name(s) from your mortgage, our friendly team can help you find the best deal for your circumstances. And, don’t forget, you will need a conveyancer just like you did when you first purchased your home. The good news is, is that this is usually free, or you’ll receive this amount via cash back. The extra good news is that, along with finding the best remortgage deal for your needs, we can help you with the conveyancer too, so that everything is under one umbrella and super easy to manage.
Hear it from others just like you…
Different Types of Mortgages
There are a wide array of mortgage types to choose from, and it can sometimes get a little confusing. Hover/tap on the box to find out more about the different mortgages available.
This is the most common type of mortgage and involves paying off a combination of your loan and the interest you owe each month, repaying the loan off in full by the end of your term (usually 25 to 30 years).
If you’re looking to have lower monthly payments, an interest-only mortgage could be for you. You don’t repay the loan amount that you actually borrowed – only the interest that you owe on it – until the end of your mortgage term.
If you have savings available, an offset mortgage could help you by either lowering your monthly payments, or shortening your mortgage term, depending on what suits your needs.
Cashback mortgages mean that you receive a cash lump sum when you successfully complete your purchase. The lump sum that you receive varies depending on the lender, and you should be aware that this may increase your monthly payments.
If you are looking for stable monthly payments you can fix your payment for a certain period of time (typically 2 or 5 years, but sometimes longer). During this time the interest rate cannot change.
There are a few types of variable rate mortgages, but they all do exactly as it says on the tin – the interest rate can vary during the course of your term.
This is a type of variable rate mortgage,
where the rate “tracks” that of the Bank of England base rate. If the base rate rises, so does your mortgage rate and vice versa.
A discounted rate mortgage gives you a discounted rate for the first period of your term (normally between 2 and 3 years). This discount is deducted from the Standard Variable Rate offered by that lender.
Similar to a tracker mortgage, but it has a ‘cap’ to stop the interest rate going above a certain level. Sometimes they even have a ‘collar’ to stop the interest rate going below a certain level. Not as popular as they once were.
Flexible mortgages allow you to make underpayments, overpayments and even take “payment holidays” during the course of your term, meaning that your mortgage adapts to your financial needs. You could end up paying less overall in interest payments by choosing this type of mortgage.
Worried about Bad Credit?
Worry no more. Whatever your credit score, our friendly team can help steer you in the right direction and find a plan that’s fit for you.
Questions about Remortgaging
The remortgage process is never straight forward, so don’t worry if you still have some questions to ask. Take a look at our handy FAQs and, if you can’t find what you’re looking for, give us a call today.
Finding the right time to remortgage your home is based on many things, including: how much equity you have built up in your home (recommended to be at least 10%), how close you are to coming to the end of your fixed rate mortgage, or whether the interest rates are lower now than they were when you took our your current mortgage. If any of these apply to you and your circumstances, give us a call today and see how we can help you find the right deal.
The documents that you will need to supply for a remortgage are very similar to the documents that you needed to get your current mortgage (hoorah!). These can include: ID documents, proof of address, bank statements, employment history, current mortgage details, and any future plans you may have that could affect your financial situation.
If you’re thinking about remortgaging your home to raise money or get a better deal, you will have to take into account any fees applied by your current lender e.g. early repayment fees or exit fees, as well as incurring costs from your new lender. It’s really important to do the maths beforehand and weigh up the pros and cons of your outgoings compared to how much you will save on your monthly payments, or how much you will be able to receive as a payout. If you would like a second opinion on whether remortgaging is the right direction for you, give us a call today and see how we could help you.
Get your Remortgage
Speak to one of our advisers today and see how we can help you with a stress-free mortgage.
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