Getting ready to remortgage is all about good preparation. Whether you’ve seen a great rate that you want to switch to in order to save money, or perhaps your fixed deal is coming to an end, it’s important to get yourself clued up about what to expect and what you need to do to supercharge your remortgaging journey.
And when you’re ready, we’ll be here to offer expert advice and guidance along the way. Here are a few key questions you need to ask yourself (and some things to consider).
How much do you owe on your current mortgage?
You need to find out how much is left to pay on your current mortgage. If you’re unsure, your mortgage adviser or lender will be able to tell you the exact figure. Once you know the amount, you will know exactly how much you need to remortgage for and can work out what your repayments could be.
How soon can you remortgage?
The common question we get asked is: ‘how soon can I remortgage?’ There is no set answer to this question. Technically, you can switch mortgage products any time you wish, however switching before your current deal has ended could mean you have to pay an early repayment charge.
Before you decide to remortgage, it’s important you find out if there is a charge on your mortgage, how much it would be, and what date it applies until. This is something your mortgage adviser will be able to tell you, plus they can help with whether it would be worth switching deals and paying the charge, or waiting until you’re out of the initial discount period of your mortgage.
Realistically, if you’re happy with your current mortgage and only need to remortgage because your offer period is coming to an end, then you’d probably want to start looking around six months before your end date.
How can you prepare your finances for a remortgage?
There are a few things you can do to get your finances in good shape if you’re getting ready to remortgage.
- Check your credit score - here’s how
- Don’t apply for any new credit
- Take steps to improve your credit if necessary
- Avoid spending large amounts of money
- Don’t go into your overdraft anymore than you already are (if you are)
- Collect all your important documents
Lenders want to see that you’re good at handling your finances and can still afford to make your repayments each month, which is why the above points will go against your favour just before you remortgage. In a lot of ways, a remortgage is like applying for a new mortgage altogether, so your affordability matters.
Getting ready to remortgage with an expert adviser
Understanding how remortgaging works will help prepare you for when the time comes. There’s a lot you can do on your own but when the time comes, nothing is quite as good as the professional touch.
Don’t hesitate to get in touch with us if you have any questions about your remortgage. We’re here to help at every stage of the process and can help you secure a deal that is going to suit your unique needs.
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 on your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.
You may have to pay an early repayment charge to your existing lender if you remortgage.