You may have heard about the benefits of remortgaging, such as being able to reduce your monthly mortgage payments by switching to a better deal or being able to release equity from your property to fund home renovations. But how does remortgaging work?
This article explains everything you need to know from what remortaging is, the main reasons why people remortgage and how the process works.
What is remortgaging?
In a nutshell, when you remortgage you switch your mortgage on your current home from one lender to another. And your new mortgage will replace your old one.
Why remortgage?
There are lots of reasons why many people choose to remortgage. Some of the main reasons are:
- Saving money on your monthly mortgage payments by remortgaging onto a cheaper deal.
- Your current deal is up for renewal.
- Releasing equity to pay for home improvements
- Being able to make more overpayments on your mortgage than your current deal allows
How does remortgaging work?
So how does remortgaging work? The good news is it’s usually a simple process.
Shop around
The first step is to find the right mortgage for your needs. There’s an enormous range of options out there when it comes to remortgaging so it can feel a bit overwhelming if you try to do all the research yourself.
That’s one reason why it’s a good idea to speak to an expert mortgage adviser. They’ll have a chat with you to find out what you want to achieve, for example if you’re looking to release equity from your property to fund home improvements or whether you simply want to save money by switching to a better deal.
Then they’ll use their expert knowledge to talk you through your options and help select the right mortgage for you.
Check any fees
When you remortgage, it’s important to note your current lender may charge fees such as an early repayment charge if you end your mortgage term early.
Again, this is where expert advice from a mortgage adviser can really help you. They’ll crunch the numbers for you – and you may find out you’ll still save financially by remortgaging even if you have fees to pay.
Make your application
Once you’ve chosen the right mortgage for you and want to proceed, you’ll need to make your mortgage application – again, this is something our mortgage advisers can help you with.
And just like when you apply for a mortgage, when you want to remortgage, lenders will want you to demonstrate that you’re a low-risk borrower.
You’ll need to give paperwork such as bank statements and the lender will check your credit report too.
How long to remortgage?
It varies but it typically takes 4 to 8 weeks to remortgage.
Where can I find out more?
When it comes to remortgaging, it might seem like there’s a lot to consider. But that’s where our experts come in. They’ll explain everything you need to know and help you throughout the process.
And you’ll probably find that remortgaging is usually quite a simple process! So if you’re interested in finding out more about remortgaging, speak to one of our expert mortgage advisers for a no-obligation chat on 01363 773860 or click here to arrange a call back.
You may have to pay an early repayment charge to your existing lender if you remortgage.