Securing a mortgage offer is a critical milestone on your journey to buying a home. If you’re searching for how to get a mortgage offer,
Securing a mortgage offer is a critical milestone on your journey to buying a home. If you’re searching for how to get a mortgage offer,
As the market shifts, your mortgage may no longer be the best option for you.
Our experienced remortgage advisors can help you to secure a new deal that’s more suitable.
I want to
Remortgaging involves switching your current mortgage to a new deal, either with your existing lender or a different one.
You’re not moving house; the new mortgage deal simply replaces the old one, and is still secured against the property.
Speaking to a mortgage broker for remortgage purposes can be crucial to identifying the most suitable deals – saving you time, money, and hassle.
They can also offer ongoing support, ensuring you’re taken care of at every stage of the remortgaging process
A standard remortgage involves switching your current mortgage deal to a new one, typically with a different lender. This is often done to secure a better interest rate, extend (or reduce) the term of a mortgage, or release equity from the property.
A product transfer is when you change your mortgage deal with your current lender rather than switching to a new provider. A typical product transfer doesn’t require a full valuation of your home, which means this process is often quicker.
We’re committed to making your remortgage process seamless, tapping into our years of experience with lenders, products, and options to simplify the experience. We do the heavy lifting for you.
Our team of remortgage advisors is dedicated to reviewing hundreds of lenders and thousands of mortgage products on your behalf. With the whole of the market at our fingertips, you can rest assured you’ll be presented with only the most suitable remortgaging options.
Tired of being passed from person to person when trying to remortgage your home? With UKMC, you’ll be assigned a dedicated mortgage advisor from the start, providing you with a single point of contact throughout your entire journey with us.
Thanks to our online portal, you’ll have convenient access to a range of free property reports that can also be downloaded with ease.
Our reports cover:
Fed up with taking time away from work to speak to a remortgaging broker?
At UKMC, we offer late-night appointments outside of the standard 9-5 hours, so you can speak your dedicated case manager when you need to.
If you choose to switch to a new lender, affordability assessments are essential for ensuring your income can still support your existing mortgage. It's also good practice to review your credit file to make sure all payments are up to date and to understand how your credit profile may appear to potential lenders.
To help you understand your remortgaging options, we'll weigh up the benefits of sticking with your existing lender against other available rates from the rest of the market. Sometimes, staying with your existing lender could be a more cost-effective option.
Remortgaging fees, interest rates, and the amount of equity built up in your property can all play an important role in determining which deal is most suitable for you. As an expert remortgaging broker, we’ll take the time to understand your specific needs and highlight the most appropriate arrangements.
Similar to when you purchase a property, you’ll also need to apply for your remortgage offer – a process UKMC can help with. If you’re switching lenders, they may request a property valuation and supporting documents, such as payslips and bank statements, before underwriting your application.
After carrying out all their checks, the lender will then provide you with a mortgage offer. Your conveyancer will undertake all the necessary legal work through to completion by arranging for the funds to be transferred to your previous lender. If you’re borrowing additional money, the extra will be paid to you.
Remortgaging can be a smart move for a few reasons.
Your current deal is ending
By remortgaging, you can shop around for better deals and possibly lower your monthly payments. If your home’s value has gone up since you got your mortgage, you might qualify for lower interest rates, too.
You want a new deal that meets your needs
Financial and personal circumstances are always changing – perhaps you’ve had a pay rise, or are concerned about mounting debt – so you may want to switch deals to ensure the arrangement still meets your needs.
For example, if you want to pay off your mortgage faster but your current lender won’t let you, remortgaging could offer more flexibility.
Just watch out for any fees involved to make sure it makes financial sense for you.
You want to release equity
Remortgaging to release equity (the value built up in your home) can be vital if you want to make some home improvements or consolidate debt.
While the additional borrowed money will be added to your outstanding balance and will need to paid over the full term of the mortgage, this remortgaging arrangement frees up money that would otherwise be stuck in your home.
Remortgaging simply replaces your current mortgage with a new one. This is because your new deal pays off the remaining balance on your old arrangement.
Determine affordability: Start by assessing your affordability to avoid getting carried away with home renovation dreams. It might be necessary to remortgage with another lender for a better deal.
Research mortgage options: Explore offerings from your current lender and the wider market. Consider a Product Transfer for potential cost savings and convenient online processes.
Choose the right deal: Tailor your choice based on your needs – such as fixed terms, future moves, and stability of repayments.
Initiate mortgage application: Apply online with lenders adopting digital processes. Some may automatically conduct property valuations through desktop surveys.
Navigate application process: The lender will evaluate your financial details, possibly requesting additional documentation.
Secure mortgage offer: Upon approval, you’ll receive a formal mortgage offer. If switching lenders, your solicitor will handle the final paperwork.
Completion: The final transition of property charges and direct debit payments to the new lender. Additional fund requests, if any, will follow shortly.
Small mortgage debt consideration
If your mortgage debt is below a certain threshold, around £50,000, switching lenders might not be cost-effective due to potentially high fees. Some lenders won’t even entertain mortgages below £25,000.
Early Repayment Charges (ERC) awareness
When considering early remortgaging, be cautious of Early Repayment Charges. If breaking free from your current deal is costly, explore options like negotiating with your current lender for a product transfer.
This may involve a reduced early repayment charge, making it worthwhile if the new deal significantly improves terms without a lengthy lock-in.
Home value decline impact
If the value of your home has decreased, impacting your equity, it’s crucial to reassess. Even if you initially had a 10% deposit, a drop in house prices could leave you with a higher proportion of debt.
This situation, known as evaporating equity, may lead to negative equity, where your debt exceeds the property’s value. A professional remortgaging broker can help you to carefully evaluate the implications.
The length of time for it takes to remortgage is typically quicker than if you were to buy a new home. After all, you are staying in the home and moving from one lender to another.
If you’ve remortgaged with plenty of time to spare, the acting solicitor will arrange for your mortgage to complete on a specific date. This usually falls on the day that your existing deal comes to an end with your current lender.
This process can be repeated until you have repaid your mortgage in full.
Yes, there can be costs associated with a remortgage which include but are not limited to:
For tailored guidance, speak to a remortgaging broker about any costs that you may incur along the way.
In short, no you don’t need a solicitor to remortgage. If you’re just borrowing more on your existing deal with your existing lender then there is no need for any legal changes, meaning no legal services are required.
Most lenders will also include free legals in their remortgage deals which means their chosen conveyancing form will cover all the legal requirements.
However, there are a couple of situations where you’ll need to appoint your own conveyancing solicitor:
If you’re looking to add a partner when you remortgage, you’ll need to get a solicitor to change the ownership of the property, a process known as a ‘transfer of equity’. The solicitor will amend the deeds and draw up paperwork specifying how the property will be owned.
Just like adding someone to the mortgage, removing someone also requires solicitor support because the ownership of the property is still changing. As a result, the property deeds will need to be amended, and the relevant paperwork drawn up to clarify share of ownership.
Yes, you can remortgage at any time. However, it only really makes sense to do so when it works to your advantage.
While most people remortgage when they reach the end of a mortgage deal, it could be advantageous to remortgage earlier if you could secure a lower interest rate or if you’ve built up a certain amount of equity in your home.
Yes, you can remortgage at any time. However, it only really makes sense to do so when it works to your advantage.
While most people remortgage when they reach the end of a mortgage deal, it could be advantageous to remortgage earlier if you could secure a lower interest rate or if you’ve built up a certain amount of equity in your home.
The decision of when to remortgage comes down to a consideration of costs and benefits. For example, if you want to remortgage before a fixed-rate deal comes to an end, you’ll probably have to pay early repayment charges or fees. These costs would often outweigh the potential benefits of remortgaging.
If you’ve built up enough equity in your home, remortgaging allows you to take advantage of this by releasing equity and reducing your mortgage costs.
This can be particularly beneficial during times of inflation-induced price rises, as it enables you to access capital from your home, easing increased living costs and potentially benefiting from a rise in house prices.
It’s important to note that releasing equity from your home involves some risk because your outstanding mortgage balance is likely to increase, so it’s crucial to ensure that you can afford to do so.
If you’re unsure about the next steps to take, our expert remortgage advisors can provide further assistance and guidance.
Yes, you can remortgage to purchase a new property. However, it’s crucial that your current property holds sufficient equity to make the process worthwhile.
If you have not been paying off your mortgage for an extended period, there might not be enough accumulated value to support your next property purchase, or the associated costs may not be justifiable when compared to the amounts required.
Yes, if you possess sufficient equity in your property and meet the eligibility criteria set by your preferred lender (which can be either your current lender or a different one), you can remortgage your home to consolidate all your debts.
Interestingly, approximately 90% of lenders in the UK offer this option to borrowers.
Regardless of whether you’d like to find out more about your remortgage options, affordability, or the wide range of services we can provide here at UKMC, don’t hesitate to get in touch.
Arrange a call with our experienced team of remortgage advisors at a time that suits you best, either through our easy-to-use online booking feature or by simply dialing 01925 573328.
If now isn’t the right time for you, don’t worry, you can always submit your enquiry at your convenience using our simple online contact form, or by sending an email to hello@ukmc.co.uk.
Prefer to discuss your remortgaging requirements face to face? You’ll be warmly welcomed at our office business in Warrington, so please feel free to pay us a visit!
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