So you’re looking at remortgaging your property, possibly for the first time, and you don’t know where to start.
Let’s break the process down…
Step 1 – Finding out what you can afford.
When assessing how much you can afford, it’s important to know all your annual incomings such as, salary and car allowances. It’s also key to know if you have any pre or post tax deductions like; share save schemes, season tickets or student loans.
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.
Step 2 – Researching your next mortgage!
Most lenders offer a 3 to 6-month window for securing a new mortgage, aligning with the expiration of your current one.
We’ll explore your current lender’s offers and research competitive rates in the market.
Staying with your current lender and selecting a new rate may be cost-effective, often with the option to switch online for immediate savings.
This is known as a Product Transfer.
Step 3 – Deciding the right deal for you.
This is a crucial step. Understanding the right deal for you is key. Be sure to grasp the implications of rate changes. Remember, a good deal isn’t solely about interest rates; factor in fees like product transfers and valuations. Lenders may provide incentives to offset these costs, so discuss all options with them.
Step 4 – Applying for your mortgage.
Once you’ve chosen the best deal for you, it’s time to put in your application. Similar to purchasing your property, the lender will request a number of details from yourselves.
At this stage the lender will also request a survey to be carried out on the property. More and more lenders are adopting a digital process when remortgaging, so the valuation survey may in fact be carried out automatically, or via a desktop survey, providing that there is sufficient property data available.
Step 5 – Application Assessment
The lender will assess your income, commitments and outgoings to make sure that the mortgage you take out is affordable. It’s not uncommon at this stage for a lender to request additional documentation from you.
Step 6 -Your Offer and Completion
After carrying out all of their checks, the lender will then provide you with a mortgage offer. Your conveyancer will undertake all of 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.
To learn more about the remortgage services available at our family-run business and how we can help you get the keys to your very first home, feel free to book your appointment with one of the experienced mortgage advisors at UKMC today.
If you’d like to discuss your first-time buyer mortgage requirements with a member of our team before booking your appointment, simply request a call back at a more convenient time. For those who prefer to have a face-to-face conversation and live in the Cheshire area, we welcome visits to our Warrington office!
UK Mortgage Centre is a trading style of Refresh Mortgage Network Limited. Refresh Mortgage Network Limited is authorised and regulated by the Financial Conduct Authority. FRN – 826982. Registered in England & Wales: 11614569. 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.
