Remortgages don’t have to be scary

Buying a house is one thing. Remortgaging your home? That’s a whole other daunting process. But it doesn’t have to be.

This is the kind of stuff they should have taught us in school, right? The thing is, would we have listened? At what point do we start to worry about buying houses and the subsequent remortgaging that happens after that? 

When you have to think about remortgaging, it can certainly feel like a terrifying prospect, but remortgages don’t have to be scary. In fact, they can actually be quite simple. Here’s why. 

What is remortgaging?

Remortgaging is the process many homeowners go through when they want to move from one lender to another. It is essentially like getting a new mortgage, which fully pays off your old one.

You may do this because you want to renew your term, find a better deal, or borrow money against your property. To simplify this even more, we put together a whole article covering the ins and outs of what remortgaging is, as well as what you should consider when you remortgage.

The entire process should only take around four to eight weeks after you apply and you can work with a mortgage adviser to help you through the journey. 

Can you remortgage early?

You may have found a better deal, but the problem is that your current mortgage term is not yet up. In this case, you may have to pay an early repayment fee. You may also need to pay an exit fee so it’s worth factoring these potential costs into your calculations. 

There are plenty of reasons people remortgage early, and there can be benefits to it, you just need to consider every angle when looking into it.

Why remortgaging is not as scary as it seems 

Remortgaging is usually a straightforward process. The trick is to plan and prepare as early as possible. For example, you can remortgage up to 6 months before your deal is set to expire, so it’s worth getting started as soon as possible. You can either ask your current lender if they’re offering new deals, or speak to your adviser to keep you informed.

While it is often easier to remortgage with your existing lender, it could pay to explore all your options. At least by consulting your lender first you’ll have a benchmark to compare other mortgage products against.

If you go with a new lender, you’ll need to go through a similar process as your original mortgage application, but that just means you’ve done it before. If you’re approved, then your new lender will liaise with your solicitor to sort out the paperwork. Your solicitor should also make the arrangements for your old mortgage to get paid off by the new mortgage.

Working with an expert adviser

It’s worth considering if now is the best time for you to remortgage and what that may mean for your finances. Our expert mortgage advisers are always happy to help, so get in touch today to talk through your options.

Because we play by the book we want to tell you that…

Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.

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