Remortgage Advice
Paying too much for your mortgage? Need more flexibility?
There are many reason why you may want to remortgage your home. Here are a few-
- Looking for the best deal when your existing mortgage rate comes to an end.
- You wish to change the term to increase or reduce your monthly repayments.
- Your home has increased in value so that you are eligible to a lower rate.
- Need to release some of the value built up in your home for property improvements.
- You are looking for a more flexible mortgage that fits with your lifestyle.
Remember, a mortgage is a long-term financial commitment. Making the wrong choice can affect your long-term financial security. Our expert team of mortgage advisers will help you make the right choice and ensure that the remortgaging process runs as smoothly as possible.
We would recommend that you start you search 4 months before you wish to remortgage. If it sounds like remortgaging could help you, then why not check out the current rates below then contact us today.
It is always a good idea to understand what’s happening, so read on to find out more about what is involved in remortgaging and how help to ensure you’ll find a mortgage that is right for you.
1. Why should I remortgage?
Many borrowers choose to remortgage (switch their current mortgage for a new deal, either with their existing lender or a new lender) every few years in order to take advantage of new rates, mortgage offers or to fit a change in circumstances. The market is very competitive.
Remortgaging can help you…
Remortgaging may not be the right choice if…
2. How much will it cost?
The main costs you might face when remortgaging are:
Early repayment charges
Early Repayment Charges (ERCs) are a penalty for leaving a mortgage before it comes to the end of your existing deal. Your existing lender will be able to advise you on any ERCs that apply. Your mortgage adviser will take this cost into account when making designing a solution.
Average cost 1% to 5% of mortgage.
Lender’s arrangement fee
The costs of organising your mortgage. This could be a flat fee or a percentage. Your lender will be able to advise you of the fees that apply to your mortgage.
Average cost: £0 – £2,000+
Higher lender charge
If the mortgage you are taking out is a sizeable percentage of the property’s value, usually over 90%, the lenders may add a charge to insure themselves in case you default.
Average cost: 1.5% of the mortgage.
Valuation fees
The cost of hiring a surveyor to assess the property’s condition and value. Sometimes the lender will undertake a desk-top valuation using statistical information.
Average cost: £150 – £1,500 depending on the value of the property
Legal fees
The cost of instructing a solicitor or conveyancer for preparing the deeds, searches and carrying out the conveyancing process.
Average cost: £500 to £1,500 plus VAT
Booking fees
A one-off application fee for the mortgage, “booking” or reserving the capital while processing your request
Average cost: £99 – £250
The above is a guide only. Always obtain a written quote.
3. What is the process?
a) Choose a new mortgage
Make sure you consider all the costs involved to see if a remortgage deal is worth your while. Our expert mortgage advisers will help you pick a suitable mortgage for your needs.
b) Application
This is the same application process as buying a new property. The application has to be underwritten by the lender, who will require evidence of your financial situation to ensure that you can afford to repay the mortgage.
c) Valuation
A surveyor must be hired to assess your property for any changes in condition or area value, upon which an offer will be made. Next, a solicitor will conduct local searches and send a report and title to the lender.
d) Enjoy the benefits
Finally, the solicitor will ensure your previous lender is repaid when the new lender releases the new mortgage funds. If you’re borrowing additional funds, the solicitor will release these to you on, or shortly after, completion.
AS A MORTGAGE IS SECURED AGAINST YOUR HOME, IT COULD BE REPOSSESSED IF YOU DO NOT KEEP UP THE MORTGAGE REPAYMENTS.
For mortgages we can be paid by commission, a fee or a combination of both. Our typical fee is £395. However, we will discuss your payment options with you and confirm the actual amount payable before we begin to provide our services.
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