Chesterton Road - Cambridge
Remortgaging 101: What is Remortgaging?
There are lots of reasons why you may want to consider remortgaging, from wanting to save money on your monthly mortgage payments to releasing equity to fund home renovations.
But if you’re asking ‘what is remortgaging’ because you haven’t done it before it may seem daunting. However with the right help, you’ll find it’s a simple process. And the savings and benefits to you could be huge. So here’s everything you need to know.
What is remortgaging?
Remortgaging is when you move your mortgage on your current home from one lender to another. It involves shopping around to find the right mortgage for your circumstances. The deals available can change fairly regularly so even if you’re happy with your current mortgage, it might still be worth looking to see if there are any mortgages available that suit you better. And the good news is you can look into your remortgaging options to find out what’s available with no obligation to go ahead unless you want to.
Remortgaging: How could it help me?
There are many reasons why people choose to remortgage. The main ones are:
- Saving money
One of the biggest reasons why people remortgage is to save money on their monthly mortgage payments by switching to a better deal. And if you’re currently on your lender’s Standard Variable Rate (SVR), you may be able to save a significant amount of money each month by remortgaging. If you’re currently tied into a fixed deal there may be fees to pay if you remortgage such as an early repayment charge. But depending on your circumstances it may still be possible to save money by remortgaging. It’s a good idea to speak to an expert mortgage adviser who can crunch the numbers for you to see what the potential savings are.
- Remortgaging for home improvements:
Another key reason why people remortgage is to release equity from their home to fund an extension or home renovations.
- Making overpayments:
If you want to overpay on your mortgage by more than the amount your current lender allows you may want to remortgage too.
How do I start the remortgaging process?
If you feel overwhelmed by the range of remortgaging options, don’t worry. We have a team of expert mortgage advisers on hand to help. They’ll explain what mortgage deals are available so you can see how much you could potentially save on your monthly repayments. And if you’re seeking to release equity from your property, they’ll be able to talk you through your options too.
Then if you want to go ahead, you’ll find the process is similar to when you first applied for a mortgage. So you’ll need to provide information such as proof of your earnings and the lender will check your credit history as well.
Can you help me with remortgaging?
You may have to pay an early repayment charge to your existing lender if you remortgage.
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 of the amount borrowed.