What is remortgaging?

What is remortgaging?

Remortgaging is a simple process of replacing your current mortgage with a new one, either with your existing lender or a new provider. It's a clever way to take control of your mortgage, whether you're looking to save money or adjust your term. With the right advice, remortgaging can help you get the most out of your home and your finances. 

Already have a mortgage with us? We're here to help you find the best deal for your situation. Find out what options are available to you.

How does remortgaging work?

If you remortgage, your new mortgage will replace your old one, and the remaining balance of your mortgage will be taken over by your new lender. Finding and applying for a new mortgage deal can be quick and easy, you can either stay with your current lender or explore offers from other mortgage providers. Make sure to shop around, compare interest rates, terms, and any fees that might apply to ensure you're getting the best deal for your circumstances. 

Benefits of remortgaging your home

Remortgaging your home can offer several key benefits. It can lower your monthly payments, save you money over time, and help you release equity for things like home improvements or debt consolidation. Your equity in your home is an investment and can be used to finance other important things. It can also protect you from rising rates by locking in a more favourable deal. 

When should I start remortgaging?

You can remortgage at any time, but If you like to plan ahead, you should start considering remortgaging around 3 to 6 months before your current mortgage deal ends. This gives you time to shop around for the best rates and avoid slipping onto a standard variable rate (SVR), which can be often higher. 

How much does it cost to remortgage?

The cost of remortgaging can vary depending on several factors, but typical expenses may include:

• Arrangement Fees: Some lenders charge an upfront fee for setting up the remortgage.
• Valuations Fees: You may need to pay for a property valuation.
• Legal Fees: While some remortgages deals include free legal services, others may require you to pay for the legal costs.
• Early Repayment Charges: If you're remortgaging before your current deal ends, you might face early repayment fees (ERCs), which could be a percentage of the loan or a fixed fee.
• Broker Fees: If you use a mortgage broker, they may charge a fee.

The total cost of your remortgaging could range from a few hundred to a few thousand, depending on the specifics of your situation. However, the savings from securing a better deal on your mortgage can often outweigh these costs.

How long does it take to remortgage?

Remortgaging typically takes around 4 to 8 weeks, though it can sometimes be quicker or take longer, depending on the factors of your situation and the lenders processing times. The process generally involves submitting an application, having your property valued, and going through legal checks.

What if I want to stay with my current mortgage provider?

If you want to keep your mortgage with the same provider but you want to switch to a better deal, perhaps because your current mortgage deal has ended, then a product switch might be the right option for you. Typically, this doesn’t take as long as a remortgage because you are staying with the same provider and often there are less fees involved. You may also be able to borrow more money against your property.  Whether you are looking to make repairs or improvements to your home, or to consolidate existing debt, there are a range of options that may be available to you.

Where can I get remortgaging advice?

Still feeling lost about remortgaging or wondering whether a product switch is the right option for you? You can always reach out to us directly, whether you prefer to speak to us in branch or over the phone. We're here to answer your questions and make the process as easy as possible. 

Contact us here.