Remortgage Broker
What you need to know
When you remortgage, what you are doing is replacing your mortgage from one lender to another as they may have a better rate or cheaper deal.
You should start to look around for new deals up to 6 months before your current deal finishes.
Remortgaging your home takes around two to three months depending on your circumstances but you need to actually start to apply for the mortgage anywhere from three to six months before to ensure the new rate starts the day after your current rate ends.
What is remortgaging?
Reasons to remortgage include:
- Current deal is about to end
- Capital raising,
- Debt consolidation,
- Home Improvements,
- Get a cheaper rate,
- More flexible mortgage.
To remortgage means you change mortgage lender. If you wish to stay with the same lender you will just switch your interest rate. This is called a “product transfer” or “rate switch.”
Remortgaging your home takes around two to three months depending on your circumstances but you need to actually start to apply for the mortgage anywhere from three to six months before to ensure the new rate starts the day after your current rate ends.
When you remortgage, what you are doing is replacing your mortgage from one lender to another as they may have a better rate or cheaper deal.
You should start to look around for new deals up to 6 months before your current deal finishes.
It's worth having a chat!
We know it gets confusing!
That is exactly why we’re here to explain your options and how to make it work for you!
....so, in a nutshell...
How remortgaging works
Step 1: Research
When doing your research, you will need to find the cheapest deals in the marketplace.
There are well over 100 mortgage lenders in the UK. Once you have found the rate, you will need to check the lenders criteria to see if you would be eligible to obtain a mortgage from them.
A lenders criteria states who they will lend to, types of income they are happy with, types of property they are happy to lend on, if you have varying income, if you are zero hours contract or on a fixed term contract etc.
Each lender has well over 75 points of criteria which need to be acceptable. You will also need to consider the costs of the interest rate you choose i.e. some rates are higher than others.
Rates and fees differ from lender to lender so a low rate and a high fee may not be the cheapest deal for you. We have all of these lenders at our fingertips and we know their criteria back to front so get in touch and we will tell you what you need to know.
Step 2: Get your documents ready.
There are many documents you will need when applying for your mortgage, which include, Identification, proof of income, bank statements etc.
Each lender has their own views on what documents you will need to provide them, however, our extensive knowledge of the marketplace, lenders and their criteria means we know which lenders want which documents so we can place your mortgage and get you a much higher probability of being accepted.
It is literally why we are here.
Step 3: Get an Agreement In Principle (AIP)
You will now need to get an Agreement In Principle which involves you going through your income documents to ensure you have declared the correct income to the lender and read through your bank statements to declare all of your outgoings such as child care costs, car finance, loans, credit cards, pension payments from payslips, electric, gas, water and any other regular outgoings the lender may take into consideration as a debt and then submit an AIP.
Step 4: Submit your mortgage application
Once your AIP has been accepted you will then need to submit your mortgage application. Once you have submitted your application you will need to send the lender all of the documents the lender has requested in the AIP to support your application.
These could be documents for proof of income such as payslips etc.
As you can see the mortgage application process is very compex so why not get in touch as we would love to help you.
Our role is to help you make an informed decision
There are many aspects to all types of mortgage and we understand that you need to make the best decision.
You will undoubtedly have many more questions, so please feel comfortable enough to arrange no-obligation chat with one of our fee free mortgage brokers.
Frequently Asked Questions
Here are a few of the questions we regularly answer for those who are wondering if this is the correct choice.
Just remember, we’re ready to chat and answer many more!
Here are a few of the questions we regularly answer for those who are wondering if this is the correct choice.
If you are looking to get a mortgage whether its residential or Buy To Let, all lenders have different criteria and age lending limits so we can help with this so why not get in touch and find out.
The Loan to Value (LTV) dictates the interest rate you pay, the lower the LTV the lower the interest rate. Loan to Value is calculated as the loan as a percentage of the property value so a property value of £100,000 with a mortgage of £90,000 means the Loan to Value is 90%
If you have had bad credit in the past, then there are several lenders out there who would potentially consider you for a remortgage, but it depends on what bad credit you have had, i.e. defaults, IVAs, CCJs or bankruptcies. With these mortgages, you will need to speak with a mortgage adviser to arrange this.
For more information on bad credit mortgages Get in Touch with one of our experts who would will be happy to help.
Yes. You can. You can remortgage while you are currently in a fixed rate mortgage.
If you do you may be subject to Early Repayment Charges from your current mortgage lender which can be tens of thousands of pounds so please ensure you check these with your current lender before remortgaging.
Remortgage rates are not normally higher than home mover or purchaser rates. They are comparable. Some lenders even offer a free valuation and free legal costs to entice you to remortgage to them. This is not always the case with every rate the lenders have so please check before you apply.
If you are looking to get a mortgage whether its residential or Buy To Let, all lenders have different criteria and age lending limits so we can help with this so why not get in touch and find out.
The Loan to Value (LTV) dictates the interest rate you pay, the lower the LTV the lower the interest rate. Loan to Value is calculated as the loan as a percentage of the property value so a property value of £100,000 with a mortgage of £90,000 means the Loan to Value is 90%
If you have had bad credit in the past, then there are several lenders out there who would potentially consider you for a remortgage, but it depends on what bad credit you have had, i.e. defaults, IVAs, CCJs or bankruptcies. With these mortgages, you will need to speak with a mortgage adviser to arrange this.
For more information on bad credit mortgages Get in Touch with one of our experts who would will be happy to help.
Yes. You can. You can remortgage while you are currently in a fixed rate mortgage.
If you do you may be subject to Early Repayment Charges from your current mortgage lender which can be tens of thousands of pounds so please ensure you check these with your current lender before remortgaging.
Remortgage rates are not normally higher than home mover or purchaser rates. They are comparable. Some lenders even offer a free valuation and free legal costs to entice you to remortgage to them. This is not always the case with every rate the lenders have so please check before you apply.
What does remortgaging mean?
Remortgaging is where you move lenders to continue paying for your house. You might choose to do this when your current rate ends although some do it before that time comes. Just be aware, leaving a mortgage deal early could result in costly fees! Most people only move lenders when their current rate is due to end and tie it in with that end date of their existing rate so no charges are paid
Can I stay with the same lender when I remortgage?
If your current lender has a more favourable deal for you to move to, you can certainly move but this is known as a product transfer. A remortgage is when you change lender.
Is remortgaging fast?
Remortgaging can take up around two months, but it is advised you always begin the application process around six months before the expiry of your current deal. This will ensure your new deal will start as soon as the current one ends.
Can I still remortgage with bad credit?
Remortgaging can take up around two months, but it is advised you always begin the application process around six months before the expiry of your current deal. This will ensure your new deal will start as soon as the current one ends.
When should you remortgage?
Look into remortgaging if interest rates are falling, your financial situation has changed, or your current deal is expiring. You may also want to look into equity release.
Can I remortgage to release equity from my home?
Yes. Remortgaging allows you to release equity in your home. You could then use this equity release to further upgrade your home, clear some debt or support other family members financially.
How much does remortgaging cost?
There are various costs to factor in when remortgaging such as arrangement fees, legal fees and any early repayment charges that might be applicable. Many lenders offer to cover some of your costs as a way to incentivize you to choose their product. We can help you find the most affordable option for your remortgaging.
Do I pay an early repayment charge when I remortgage?
Sometimes. If you choose to remortgage before your current deal ends, you will likely have an early repayment charge to pay. These can vary in value depending on how long is left on the current deal and they can run into the tens of thousands of pounds. As a result, many look at remortgaging when their deal is ending.
How does the LTV affect my remortgaging?
LTV, or Loan to Value is the percentage of the property’s value that you are borrowing. The lower the LTV, the lower the interest rates and the more favourable the mortgage. The higher the LTV, the higher the interest. This is because the level of risk for the lender is significantly bigger. Speak to us about the best remortgaging options for you.
Does remortgaging shorten the length of my mortgage?
No. If you remortgage you can set up the term of the mortgage to what youcurenttly have with your existing mortgage lender, however, you may be able to shorten or lengthen the term of your mortgage. The shorter the term the higher the monthly payment but the less interest you will pay overall and the cheaper the mortgage will be overall because you pay t off quicker. We can source the best remortgaging options for your budget so why not reach out today?
Can Mortgage Saving Experts help me with other mortgage products?
Yes. Our many years of experience put us in prime position to help you with first time buyer mortgages, equity release, buy-to-let mortgages and the complex mortgages that you may not be able to find with your typical lenders.
Is Mortgage Saving Experts fully regulated?
Yes. We are fully authorised and regulated by the FCA. Our FCA number is 779662.
