Remortgaging - The Steps

If you are remortgaging for the first time we hope our guide will help

 

Remortgaging - 
The Steps

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How do I remortgage my home?

People choose to remortgage their home for a number of reasons.

Some want to reduce their monthly repayments or reduce other debts. Others want to change the terms of their mortgage to make it more flexible and suit their current needs. Others may want to release equity built up in their home. Most have simply come to the end their existing mortgage deal and wish to secure another one.

There are many factors involved in getting a new mortgage, and the process may seem complex and time consuming, but don't worry, we are here to help. Simply give us a call and we can guide you through your remortgage from start to finish.

Still, it's a good idea to know what may be involved. Read on to find out more about remortgaging, and how to ensure you'll find a new mortgage that is right for you and your circumstances.

Working out how much you can afford to pay

The first step in getting a remortgage is working out how much you can afford to pay. This involves getting all the relevant remortgaging paperwork together.

 

You'll need to find your recent mortgage and bank statements to see what your current interest rate is and how much you are paying each month. This is also a good time to consider what you could afford if your monthly repayments increased.

Although many people change lenders to reduce their monthly repayments, others want to make their mortgage more suitable to them – perhaps switching from a variable rate to a fixed rate. In some cases, your monthly outgoings could increase when you choose a new lender, so it's important to know what you could afford.

You should also factor in how much you can afford to spend on additional fees, which we will come to next.

Investigating what costs are involved in remortgaging

There are usually some costs involved when switching your mortgage to a new lender. These include an arrangement fee paid to your new lender for setting up the mortgage, as well as potential valuation and legal fees. You may have to pay an exit fee for leaving your current lender.

 

Certain fees can be added to your mortgage balance, but remember that you'll be paying interest on them if you do. If paying them up front, make sure you budget for them.

Fortunately, many remortgage deals will have low or sometimes even no set up costs – as part of our advice, we always check that any new deal is worthwhile based on both the interest rate and any fees involved.

Checking if your current mortgage has restrictions. Don't assume that you're free to leave your current deal whenever you want. You may be tied in with Early Repayment Charges (ERCs) and these can be costly. Check with your current lender whether you have ERCs, how much they are and when they end. Also ask for a redemption statement. This will give you an up to date balance and will include any fees that you may be charged for leaving your exisitng lender.

Looking around for a new mortgage

When looking for the right mortgage deals to suit you, you're likely to find a lot to choose from and selecting the right one may seem daunting. This is where using an independent mortgage broker may be the right option as we'll do all the research for you.

 

If you approach your current bank for advice on good mortgage deals, they're likely to only suggest their own rates.

A broker, however, will compare options from across the market – helping you find the right mortgage deal for you.

Checking what your current lender is able to offer

Before you commit to a new mortgage agreement, we'd advise you to check what your current provider can offer you – they may have some good deals available for existing customers.

You can then compare what they offer with what you can get by switching to a new lender.

 

Once we've researched everything for you, found a good deal and you've decided that a new mortgage is right for you, it's then time to submit your application.

Getting your mortgage offer

Once your application has been submitted, we'll help you get your new mortgage up and running as soon as possible.. Your new lender will be assessing both you and the property (by way of a valuation) before issuing a mortgage offer and we can liaise with them on your behalf to make the process as smooth as possible.

 

There's also the legal work to be done – lenders will often appoint their own solicitors or conveyancers for a remortgage, but if you need to appoint one, we can recommend one for you.

Once your mortgage offer has been issued, we will run through it with you and to ensure that everything is correct. If you're unsure of anything during the process, we are available to help.

We hope this guide has helped you understand how to remortgage your home. I know this may see an extensive list, but don't be alarmed, we will do all this for you. If you'd like some further advice or perhaps you've already decided that it's time for you to find a new lender and you'd like to get started, get in touch with us.

Remortgaging -
The steps
How do I remortgage my home?
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Working out how much you can
afford to pay
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Investigating the costs
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Looking around for a new mortgage
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Checking what your current lender
can offer
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Getting your mortgage offer
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Buying a property -
The costs
Major upfront costs
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Stamp duty
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Deposit
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Valuation fee
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Surveyor's fee
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Legal fees
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Electronic transfer
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Removal costs
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Mortgage fees
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Insurance
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Council tax
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Leaseholder's costs
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Mortgage broker fees
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Mortgages -
A Beginners Guide
What is a mortgage
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Working out what you can afford
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Applying for a mortgage
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Your deposit - Size matters
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How does a mortgage work
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Repayment mortgage
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Interest only mortgage
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Different types of mortgage
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