YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE PAYMENTS.

 

  1. What is remortgaging?

 

Remortgaging is the term given to changing your mortgage deal. Whether this is switching from one lender to another or changing your mortgage product with the same lender.

 

  1. Is it a good idea to remortgage?

 

It is always a good idea to remortgage. If you don’t you are likely to be on your current Lenders Standard Variable Rate (SVR) which is usually more expensive than other deals available.

 

  1. How does it work when you remortgage?

 

When you remortgage your current situation will be reassessed and you will be able to choose from suitable products from the other lenders in the market, not just your current lender. This means your property will be revalued based on the current market and your current mortgage balance will be taken into account.

 

  1. What does it mean to remortgage?

 

Remortgaging means that you are changing your mortgage deal as your current mortgage product is about to finish. Like car insurance, when your current terms expire, you shop around to make sure you have the best possible terms from everyone in the market.

 

 

  1. When is the best time to remortgage?

 

Most mortgages have penalties if you leave early. i.e. A 2-year fixed rate will tie you in for 2 years. However, you can start searching for a new mortgage deal and can apply for it up to 6 months before the end of your current rate. The new mortgage will take effect from the day after your current mortgage expires. If you leave it too late, you could end up paying too much for your mortgage so it’s best to start looking as early as possible.

 

 

  1. How long does a remortgage take?

 

A remortgage is much quicker than arranging a mortgage for a purchase as there is much less legal work to go through. Typically we would expect a remortgage to a new lender to take 4-6 weeks to set up and be ready for completion. If you are remortgaging with the same lender, it can be done much quicker but isn’t always the best deal.

 

  1. How much does it cost to remortgage?

 

Remortgaging is typically much cheaper than purchasing a property as the cost for the legal work is usually covered by the lender or they offer cashback to help cover the cost of a solicitor of your choice. There may still be arrangement fees included with your new mortgage product but the upfront cost is much much lower than a purchase.

 

  1. Do I need a Solicitor to remortgage?

 

The is some basic legal work that needs to be completed with a remortgage. Often, the new lender will appoint their own ‘in-house’ solicitor to carry this out free of charge. However, some lenders prefer that you find your own solicitor and then the lender will offer ‘cashback’ on completion to help cover some of, if not all of, this cost. We can certainly help find the right solicitor here if needed.

 

  1. Can I remortgage to pay off debt?

 

When you remortgage you can reassess all aspects of your mortgage. If you wanted to increase your mortgage balance in order to release some money to clear debts, you can. We would need to discuss the positives and negatives of this of course, but it is possible.

 

  1. Does remortgaging affect my credit rating?

 

When you remortgage you will need to pass a credit check. Some lenders will carry out a ‘soft check’ that won’t impact you but some will carry out a ‘hard check’ that will impact your credit rating for a short period.

 

  1. How often should I remortgage?

 

You should always remortgage when your current rate is due to expire. You can start the process up to 6 months in advance of the end of your current deal to make sure that the new deal is set up, ready to start when your current mortgage expires. For example, if you are on a 5yr fixed rate, you should start conversations with a Broker 4 and a half years in.

 

12. What are the disadvantages of remortgaging?

 

There are very few disadvances to remortgage at the end of your fixed rate. If you don’t remortgage you will move to your lender’s Standard Variable Rate which is often one of the highest rates you can go on. If you are on a really low rate at the moment, when you remortgage your rate might be higher BUT a new rate secured by a remortgage will still most likely be lower than the Standard Variable Rate you’d be on if you didn’t remortgage at all.

 

  1. Can you be refused a remortgage?

 

When you remortgage you will be assessed fully by a new lender, if you don’t meet their criteria then you can be refused. Remortgaging with your existing lender is often easier and you are more likely to be accepted, but they don’t always have the best rates. It’s important to talk to a Broker who can make sure you are proceeding in the best way.

 

  1. How quickly can you get a remortgage?

Remortgaging to a new lender can take 4-6 weeks to be arranged. Remortgaging or completing a ‘product switch’ with your existing lender is usually much quicker but might not be the best rate available. You should always start the process as soon as possible with a Broker in order to give yourself enough time to get the best deal. You can start the process up to 6 months in advance of your current deal ending.

 

  1. How much can I borrow when I remortgage?

 

When you remortgage your income and outgoings will be assessed, much like when you took out your mortgage initially. The amount you can borrow will vary from lender to lender with some only offering as much as 4 times your income (minus any commitments) and others offering up to 5.5 times your income. Speaking with a Broker will mean you get the best advice on how much you can borrow and what rates are available.

 

16. Do you get money back when you remortgage?

 

When you remortgage you can reassess the terms of your mortgage, including the balance. If you wanted to release some funds for home improvements, debt consolidation or even just to buy a car or go on holiday you can.

 

  • If you were to debt consolidate when remortgaging it’s important to remember, Consolidating debt may reduce your outgoings now, but you may end up paying more overall. Your home may be repossessed if you do not keep up repayments on your mortgage.

 

 

17. Do you need a deposit when you remortgage?

 

A remortgage will be based on your mortgage balance and your property value. The difference between these two figures is the ‘equity’ you hold in the property. This equity will be used as your deposit and will determine the interest rates and products you can secure. If you give us a call, we can help you find the best deal for your current scenario and your preference moving forward.

 

18. Can I remortgage my house if I own it?

 

If you own a house with a mortgage, you will definitely want to remortgage when your current deal is coming to an end. You can start the process up to 6 months before your current mortgage finishes. If you own your house outright with no mortgage, you can still remortgage in order to take some money out of the property. This money can be used for any number of reasons such as home improvements, buying a car, funding a holiday, or clearing debt. Give us a call and we can talk you through all your options.

 

19. How does remortgaging free up money?

 

When you remortgage you can reassess the terms of your mortgage. Whether this be the overall length of the mortgage, the type of interest rate you want (fixed or variable) or to increase or decrease the outstanding balance. If you wanted to free up some money from your property you can do this subject to affordability criteria with the new lender. Give us a call and we can help you work out the best option moving forward.

 

20. Can I remortgage if I have bad credit?

If you have bad credit you can still remortgage, your options will just be more limited. It is still a good idea to remortgage if you have bad credit because if you don’t you will move to the lenders’ standard variable rate which is more often than not higher than other rates in the market. You should discuss your options with a Broker (us!) up to 6 months in advance of your current deal ending so we can find you the best solution moving forward to save you the maximum amount of money.

 

21. How does remortgaging work to buy another property?

 

When you remortgage you can reassess all the terms of your current mortgage. Therefore you could remortgage and increase your mortgage balance to release some money from your property. You can use the extra funds to put down a deposit on a new property if you wanted. As there a lot of moving parts with this it is definitely worth giving us a call so we can work out how much you can release from your property and how much you could borrow on the new property.

 

22. Can I remortgage my house to pay off debt?

 

You can remortgage to pay off your debts. This is definitely something you’ll need advice on as there are a lot of positives and negatives to it. Give us a call and we can talk you through the options.

 

  1. Can I remortgage to release equity?

 

When you remortgage you can reassess all the terms of your mortgage. Whether this be the length of your mortgage, the interest rate or the mortgage balance. If you meet the lenders criteria you could release equity from your property to use as you wish. You will need to speak to a broker to discuss this so give us a call and we can help with the process to make sure your goals are met.

 

 

24. I own my house outright can I remortgage?

 

If you own your house outright you can still remortgage and take some of the equity out. This money can be used for many reasons. Home improvements, debt consolidation, buying a car, funding a holiday, buying another property. There are many reasons and if you would like to explore this, please give us a call and we’ll talk you through the options.

 

 

25. Can I remortgage to buy a second home?

When you remortgage, if you meet the criteria, you can take money out in order to buy another property. You’ll need to give us a call to help with the figures as the lender will assess not only your commitments now but commitments for the future property too. i.e. if you’ll require a mortgage on the second property, this could impact the amount you can raise on your existing property. Give us a call and we’ll happily talk you through the figures.

 

26. Can I remortgage if I have debt?

You can remortgage if you have debt, whether you plan to keep the debt or you wish to consolidate it.The important thing is that your debt has been well managed and you haven’t missed any payments. We can have a discussion about the positives and negatives of consolidating the debt or leaving it as it is.

 

27. Why should I remortgage?

Remortgaging and searching the market for a new deal is essential in order to make sure you have the best rate possible and aren’t paying too much for your mortgage.

 

28. Why shouldn’t I remortgage?

If you are in the middle of an initial mortgage arrangement (i.e. halfway through a 5yr fixed rate) it is likely there will be a penalty to remortgage early. If there is, you need to speak to a Broker to see whether it’s worth remortgaging early or if it will cost you money.

 

  1. Can I remortgage when still in a fixed term?

You can remortgage if you are in the middle of a fixed rate but there is likely to be a penalty. It is important to speak to a Broker to understand the positives and negatives of remortgaging early.

 

  1. Should I remortgage when my fixed term ends?

You should always look to remortgage at the end of your fixed term. This is essential for making sure you have the best product for your current needs. If you don’t remortgage you’ll revert to the lender’s Standard Variable Rate which is usually a lot higher than other rates you could secure.

 

31. How soon after getting a mortgage can I remortgage?

You are usually tied into your mortgage for the duration of the initial period you chose. For example, there will be a penalty for 2 years if you take a 2 year fixed rate. A 3 yar penalty for a 3yr fixed rate, etc. You can remortgage at any time but you may incur these penalties if they are in place.

 

32. How does remortgaging work?

Remortgaging is much quicker than getting a mortgage for a house purchase. A Broker will help you find the best rate and new lender for your circumstances. We can then help you apply for the mortgage and get it ready to go for when your existing rate finishes. Typically a remortgage can take 4-6 weeks but we recommend starting the process as far in advance as 6 months.

 

33. What type of remortgage should I choose?

You should have a detailed discussion with a Broker about the different types of mortgages available at that time. They will run through your preferences and give you a formal recommendation that is best suited to your needs.

 

  1. Can I remortgage my flat to buy a house?

You can remortgage your current property, release some money and use those funds to buy another property. If you plan to rent out your existing property and move in to the new property, this is called a ‘Let to Buy’.

 

  1. Can I remortgage my “right to buy” property?

Yes. Once you have purchased your property under the Right to Buy scheme, you can remortgage when your initial product comes to an end.

 

  1. Is best to remortgage with the same lender?

It is always best to speak to a Broker and ask them to compare rates with your existing lender and rates with a new lender. This is the best way to find out whether it’s best to stay with your existing lender or move elsewhere.

 

  1. Can I remortgage with a new lender?

You should always choose the most suitable mortgage for you when remortgaging. This is often with a new lender should they have better rates at that time.

 

  1. Do I need a Mortgage Broker to remortgage?

You don’t necessarily need a Mortgage Broker but a Broker is the best way to quickly compare all the suitable rates and to make sure you know the best option.

 

  1. How can I calculate if I will save money remortgaging?

If you speak with a Broker they will be able to calculate if you will save money with a remortgage. There are many variables and a Broker will be able to advise correctly.

 

  1. Can I reduce my mortgage length when I remortgage?

When you remortgage you can reassess all the terms of your mortgage. You can increase or reduce your mortgage term. You can also increase or reduce your mortgage balance should you wish.

 

  1. Can I increase my mortgage length when I remortgage?

When you remortgage you can reassess all the terms of your mortgage. You can increase or reduce your mortgage term. You can also increase or reduce your mortgage balance should you wish.

 

  1. I am moving house, is it best to remortgage or port my mortgage?

It is always best to speak to a Mortgage Broker to discuss your options. We can find the best mortgage if you were to remortgage and compare the costs of that with porting your existing mortgage.

 

43. Do you pay stamp duty when remortgaging?

You do not pay Stamp Duty when remortgaging.

 

  1. Can I agree to remortgage ahead of time?

You can reserve a new mortgage product and arrange the remortgage up to 6 months before the end of your current deal. It is advisable to do it as soon as possible.

 

  1. I have agreed on a new mortgage ahead of time but the rates are better now. Can I

change my agreement?

In most circumstances, you can still change the mortgage rate you’ve reserved any time before that new rate takes effect. Therefore if rates have dropped, you can change.

 

  1. What is a mortgage product transfer?

A mortgage product transfer is a term given to switching to a new product with the same lender when your current deal ends.

 

  1. What is the difference between a ‘product transfer’ and a ‘remortgage’

A Product Transfer is a switch to a new product with the same lender, usually on a Like for Like basis. A remortgage typically is a move to a new lender, or the changing of your mortgage balance or terms.

 

  1. Why use a mortgage broker for a product transfer

A Mortgage Broker can take away a lot of the hassle. Even for a product transfer, we can compare the rates your lender is giving you to make sure you choose the best. At the same time we can compare these rates to other lenders to make sure you have the best option.

 

  1. What are a mortgage broker’s fees on a product transfer?

Most mortgage brokers will charge a reduced fee for product transfers. Documents still need to be checked and the market needs to be researched but usually, the administration is a little quicker. We charge £250 for a product transfer.

 

  1. Product transfer – why use a broker and not the bank?

A Mortgage Broker can take away a lot of the hassle. Even for a product transfer, we can compare the rates your lender is giving you to make sure you choose the best. At the same time, we can compare these rates to other lenders to make sure you have the best option.

 

 

  1. Can a broker help me with a product transfer?

Yes. A mortgage Broker can help with a product transfer to take away the hassle and make sure you have the best product in the market at the time of completion.

 

  1. Can a broker help me remortgage with the same bank?

Yes. A mortgage Broker can help you remortgage with the same bank. At the same time, they will compare all the rates in the market to make sure you end up with the best solution for you.

 

  1. Why use a broker to remortgage when staying with the same lender?

A mortgage Broker can save you a lot of time, even when remortgaging with the same lender. They will also compare options from other lenders to make sure staying with the same lender is the best option.

 

  1. Do I need a credit check for a product transfer remortgage?

For a like-for-like product transfer, most lenders don’t require a credit check. This is not always the case and if you are making changes to your mortgage (term or balance) they may insist on a new credit check.

 

  1. I am self-employed is a product transfer my best option?

No necessarily no. Being self-employed makes getting a mortgage a little more tricky but it doesn’t mean your existing lender is the best option. Speak with a Broker to make sure you have the best solution for you.

 

  1. When is the best time to start a product transfer?

As soon as possible. Lenders have different timescales for when you can start the process but you will want to start the process as soon as possible. Typically the maximum you can look at is 6 months.

 

  1. How long does a product transfer take?

A product transfer is often a lot quicker than a remortgage. A like-for-like product transfer can be sorted in less than a week in some cases.

 

  1. Can I cancel a mortgage product transfer once agreed upon?

Different lenders have different stances on cancelling a product transfer but as long as the new rate hasn’t taken effect, most will allow you to cancel.

 

  1. Can I change a mortgage product transfer?

Different lenders will allow different things. However, most will allow you to cancel a product transfer request and pick a new rate as long as it is done far enough in advance of the change.

 

  1. Do I pay any legal fees on a mortgage product transfer?

No. If you are staying with the same lender you won’t need to pay legal fees. If you are remortgaging, there may be a cost.

 

  1. Do I pay any solicitor fees on a mortgage product transfer?

It is unlikely you’ll need to pay for a solicitor for a like-for-like switch with the same lender. If you are changing to a new lender there will be some basic legal work needed and there may be a cost for this.

 

  1. Is the property revalued for a product transfer?

A physical valuation is unlikely to be needed. Usually, the lender will assume the value of the property based on average property price changes since their last valuation. If you remortgage to a new lender, they are likely to need to carry out their own valuation.

 

  1. Do I need to provide proof of earnings for a product transfer

Not normally. For a like-for-like product transfer, most lenders require very little documentation. If you are making changes, such as increasing your mortgage balance, they will require proof of earnings.

 

  1. Who cannot do product transfer on their mortgage?

This depends on the lender’s criteria. If your situation is the same as when you took out the mortgage, most lenders will allow a transfer. If your situation has changed, for example, you took a residential mortgage out but have since moved out and are renting the property out, you may not be allowed to do a product transfer.

 

  1. What is the difference between porting and product transfer?

Porting your mortgage means you keep the same mortgage terms, but are moving it to a new property if you are selling and buying elsewhere. A product transfer is a term given to switching to a new product on the same property when your current deal comes to an end.

 

The information contained within was correct at the time of publication but is subject to change

 

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE PAYMENTS.