Buying your first home is an exciting step but saving for a deposit can often feel like the biggest hurdle. With house prices continuing to
Buying your first home is an exciting step but saving for a deposit can often feel like the biggest hurdle. With house prices continuing to
As the market shifts, your mortgage may no longer be the best option for you. Our advisers can help secure a new deal that’s more suitable.
I want to
Remortgaging is where you switch your existing mortgage to a new deal, either with your existing lender or a different. You’re not moving house, and the new mortgage is still secured against the property.
A standard remortgage refers to the process of 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 the mortgage, or release equity from the property.
A product transfer is when you change your mortgage deal with your current lender than remortgaging and switching to a new lender. A typical product transfer doesn’t require a full valuation of your home which means they tend to complete a lot quicker.
Remortgaging doesn’t have to be this overhanging shadow every time the renewal letter drops through your inbox. 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’ll do all the heavy lifting for you.
We search the whole of market, looking and comparing 1000s of mortgage rates for you. We’ll review your eligibility across hundreds of lenders and make sure to find the most suitable deal for you!
You’ll be assigned a dedicated mortgage adviser and case manager from your first call with UKMC, providing you with a single point of contact throughout your remortgage, ensuring you won’t be passed around to different team members for each query.
With our easy access portal, you’ll be able to seamlessly access and download comprehensive reports on your property with just a few clicks.
Reports include:
Broadband speed
Energy efficiency rating
Property price trends in your postcode
Breakdowns of property types, tenure, professions, and crime in your area
Flood risk
Geology report
Infrastructure projects
Radon risk
Life happens, and let’s face it, when you work a 9-5 job, it’s often impossible to make appointments during standard business hours. That’s why we offer late-night appointments 5 days a week. We are committed to accommodating your schedule, ensuring you receive the support you need at a time that works best for you.
We need to make sure your income still supports the outstanding mortgage if you decide to move to new lender. Once we know an estimation of how much you could lend, we always suggest you check your credit file. This may have done with the original purchase, but it’s good practice to make sure that all your payments are up to date and you know what a potential new lender would see on your credit file.
We'll understand what your existing lender is offering you to stay as a customer of theirs, as well as research into the rest of the market to find what other competitive rates are available. It may work out more cost effective to stick with your existing lender and select a new rate. Most of which can be dealt with online and some lenders, allow you to switch your rate early to give you the opportunity to save money right away!
Its key here that you understand what deal you would prefer, and what would happen if the interest rates changed, or if you would prefer to guarantee you monthly repayments for a set period of time. It’s not always about the interest rate, we need to factor in any fees associated, such as product fees, valuation fees, any early repayment charges, application fee and any associated legal costs.
Similar to when you purchase a property, we need to apply for your remortgage offer. As a part of this process, your lender my request several supporting documents for your application such as payslips and bank statements. At this stage the lender will also request a valuation to be carried out on the property. Once that has been completed they will start underwriting your application.Â
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 and take the process through to completion by arranging for the funds to be transferred to your previous lender. If you are borrowing additional money, to consolidate other debt or carry out some home improvements for example, the extra will be paid to you.
Remortgaging can be a smart move for a few reasons.
If your current mortgage deal is ending soon, you could get stuck with a higher standard variable rate from your lender, which can be much pricier than current market rates.
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. It’s also worth considering if you’re worried about interest rates going up soon.
Remortgaging now could lock in a good rate and give you peace of mind. Plus, 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 in the long run.
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 – 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, receive a formal mortgage offer. If switching lenders, your solicitor will handle the final paperwork.
Completion: Experience 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 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. Evaluate the implications carefully.
The length of time for the remortgage to complete 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.
Typically, from Application to securing your mortgage offer, the process is around 3 to 6 weeks.
If you have 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 introductory deal comes to an end with your current lender.
Your new mortgage will continue and you will receive confirmation from both lenders that the remortgage has completed.
This process can be repeated each time until you have repaid your mortgage in full.
There can be costs associated with a remortgage which include but are not limited to:
Product Fees
Valuations Fees
Any Solicitor Fees
Early Repayment Charges
Admin or Deed Release Fees
Speak to your adviser about these costs that you may incur along the way.
In short, no you won’t. If you’re just borrowing more on your existing deal with your existing lender then there is no need for any legal changes, which means 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.
There are a couple of situations where you’ll need to appoint your own conveyancing solicitor:
Adding someone to the mortgage –
If you’re looking to add a partner when you remortgage, you’ll need to get a solicitor as you are changing the ownership of the property. This is also known as a ‘transfer of equity’. You will need solicitors to amend the deeds for you and help draw up paperwork specifying how you will own the property. You can get quotes from conveyancing solicitors that will do this for you here.
Removing someone from the mortgage as in the above point means that the ownership of the property is changing, so a solicitor will be needed to amend the deeds.
You can remortgage at any time, but 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.
Remortgaging to release equity can be a useful way of borrowing and reducing your mortgage costs. By switching to a new deal, you have the potential to save money during the process.
A majority of people choose to remortgage at the end of their fixed-rate term to keep their mortgage repayments low. If you have equity in your home, remortgaging allows you to take advantage of this by releasing equity. 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, so it’s crucial to ensure that you can afford to do so. This is because your outstanding mortgage balance is likely to increase. If you are unsure about the next steps to take, our advisors can provide further assistance and guidance.
In the UK, remortgaging stands out as a highly cost-effective method of raising capital to purchase a new property. However, it is crucial to ensure 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.
It is indeed possible and quite a prevalent reason for remortgaging in the UK. 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), there are no obstacles preventing you from remortgaging 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, your affordability, or the wide range of services we can provide here at UKMC, don’t hesitate to get in touch.
You can either book a call by using the link below, at your convenience or give our friendly first-time buyer mortgage broker team a call today on 01925 573328.
Request a call back at a more convenient date and time using our online contact form, or simply send us your enquiry via email to hello@ukmc.co.uk.
You can speak to a member of our friendly, expert team either online, by phone or book an appointment and visit us at our Warrington Town Centre office.
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UK Mortgage Centre Limited is an Appointed Representative of Refresh Mortgage Network Limited. Refresh Mortgage Network Limited is authorised and regulated by the Financial Conduct Authority. We are entered on the Financial Services Register under firm number 1019794.
As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments. The Financial Conduct Authority does not regulate some forms of buy-to-let mortgages.
The Financial Conduct Authority does not regulate will writing and taxation and trust advice.
You may be charged a fee for your advice. A typical fee is £495, which would be payable when you receive your mortgage offer. Your dedicated advisor will discuss this further on your free initial phone call.
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