Looking for a remortgage?
There are many reasons why people remortgage but there are even more choices of remortgage options.
So which option is right for you?
As independent mortgage advisors we can help you find the best deals, saving you both time and money with the remortgage process. We are also specialist brokers for day one remortgages, where you have only recently acquired a property.
Switch to a better mortgage deal
Transferring your mortgage to a new mortgage lender is a relatively simple process compared to buying your home and our remortgage advice service will help you with the research.
What is a remortgage?
When you remortgage you change your existing mortgage deal to one with a new lender without moving home.
- Switch to a lower interest rate – It’s likely that you will want to change your mortgage when your current interest rate deal ends and you move to the lenders Standard Variable Rate (SVR). By seeking out a lower interest rate you can save money by reducing your monthly mortgage payments and also the overall cost of your mortgage.
- Choose a fixed rate – If your mortgage is currently on a variable interest rate this may be a good opportunity to switch to a fixed interest rate. This is really helpful for monthly budgeting as your payments won’t change during the fixed rate period
- Change mortgage term – Now you don’t normally need to remortgage to make changes to your mortgage term. But it may suit you to do this if you want to lower your monthly payments or borrow more without extra monthly costs.
- Consolidate debts – Choosing to consolidate existing debts such as loans and credit cards can often make your overall monthly finance payments lower. However, seek advice first as there may be several options to consider.
- To buy out a previous partner – When you purchase a property with someone else the mortgage is a joint long term commitment. If that relationship has ended you may need funds to ‘buy out’ a former partner so that you can remain in the property. This is called a transfer of equity remortgage.
Remortgaging your home can be a great way to save money on interest payments, as well as providing you with access to additional features.
The first stage will be to check whether you can remortgage, this requires looking at your own personal circumstances and also the mortgage you have now to check for any charges or restrictions. Then you are ready to choose an new mortgage deal and complete an application.
Our experienced mortgage brokers can do all of this for you. As we are independent of all lenders you get access to hundreds of deals and we will help with all of the paperwork and chasing.
When remortgaging you will apply for a new mortgage that will be used to ‘repay’ your existing mortgage. This all happens on the same day and a Solicitor is needed to co-ordinate the movement of money.
If you applied to borrow more money than you owe now the Solicitor will send this extra money to your bank account after the mortgage has been transferred.
Once you have applied for your new mortgage the process normally takes 4 to 8 weeks.
It is difficult to provide an exact answer to this question as there are so many variables.
For your current mortgage it is important to check whether there are any early repayment charges as these can be significant. In addition your lender will charge to release your mortgage, expect this to be between £100-£300.
For the new loan many lenders do offer a free legal service and a free valuation of your property. But there will likely be arrangement fees and broker fees to pay as well so check before you apply.
Our mortgage advisors can explain all of these costs to you before you apply.
That being said it is possible to remortgage at any point during the mortgage term, but it is more likely that ERC exit fees will need to be paid which could be substantial.
It is very easy to remortgage and the process is largely managed by the lenders and the Solicitor.
As you are not moving home there’s no chain, no removal people and no need to get everyone to agree on a moving day.
A Solicitor or Conveyancer is needed to make the switch legal and to correctly enter the lenders charge at the Land Registry. However, many mortgage companies will offer to use one of their approved Solicitors at a reduced cost or free of charge.
When applying for a remortgage it is an ideal opportunity to release some equity and borrow more money as this will also attract the new interest rate deal you have found.
After the remortgage has completed you will still have just one mortgage with the new lender.
The Solicitors will transfer the extra money to your bank account once the transfer is completed.
Qualifying for a remortgage is virtually the same as qualifying for a house purchase mortgage.
So the lenders needs to be happy with:
- Your credit status
- Your income and outgoings
- The type and value of your home
- The amount of equity in your home
We don’t think so but some people do inter-change the descriptions. We would explain them as follows:
PRODUCT TRANSFER – This is when you change the interest rate product you have for a new one but stay with the same lender. Generally, nothing else relating to the mortgage is changed.
REMORTGAGE – This is when you move your whole mortgage over to a new lender and at the same time choose a new interest rate product. You can also change the mortgage term, repayment type and mortgage amount with the new lenders agreement.
If you think that a product transfer is what you need we can help with that as well.
MORTGAGE HELP FOR PRODUCT TRANSFERS
You don’t need a cash deposit to remortgage. The lender will not give you a 100% mortgage but will utilise your built up equity.
Yes you can.
A property without a mortgage is known as unencumbered. A remortgage is perfectly possible and could sometimes be called an unencumbered mortgage.
Remortgaging can be difficult if you have bad credit. Just like the process of securing a mortgage for the first time, there are plenty of things to take into account, and this can become increasingly complicated if your credit history isn’t great.
The Council of Mortgage Lenders (CML) has provided guidance to UK lenders that they should not lend on a property until it has been owned for at least six months.
This can pose problems when a remortgage is needed shortly after acquiring a property. We can help clients who find themselves in this situation.
Read more about this – What is the 6 month mortgage rule?
Call 020 8301 7930 to speak to our mortgage brokers
you can REMORTGAGE TO:
make home improvements
If your home improvements include making your property larger with an extension or loft conversion it’s possible you will need to borrow money to do this.
A mortgage is usually the cheapest form of borrowing for larger amounts so you could look to increase your current mortgage with a home improvement further advance or maybe remortgage to a new lender and raise money at the same time.
The choice will be affected by who offers the best rates, who will grant the total loan you need and whether your current mortgage has any exit penalties to pay.
Our brokers can look at all of these aspects to see which is the best route for you.
buy someone out
With a transfer of equity remortgage you will change who owns the property and who is part of the mortgage.
This is commonly used to buy someone out of a mortgage. The remortgage will allow transfer of property ownership from joint to single.
If there is equity in the property the new remortgage can be used to raise these extra funds which will be given to the person leaving the property as part of their equity share.
A Transfer of Equity mortgage is relatively straightforward and a solicitor will be needed to change the property ownership. It should be fine to use the lenders panel solicitor for this provided you have agreed the ‘buy out’ payment.
Need a second property remortgage?
Our remortgage service also includes investment properties, holiday homes and holiday lets.
Why use a mortgage broker?
There are a lot of different options now when searching for a remortgage deal. But do you really want to spend all of your time searching online and trying to work out which deal is best? With so many lenders and deals it can be tricky knowing where to start.
Let Drake Mortgages help you
Our senior mortgage brokers each have over 20 years of experience in helping clients with their mortgage arrangements.
You are our client and we work for YOU, not the lender. We aim to problem solve, search for the best deal and provide a great service.
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Speak to an expert about REMORTGAGING
The right advice is crucial when looking to remortgage. With over 20 years advising on mortgages our brokers can save you time by searching the whole market to find you a great deal.
Call 020 8301 7930 to start your journey with us.
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