Remortgages

Time to starting thinking about your remortgage?

Get remortgage ready with our support. Explore what you need to consider and take a look at rates here.

What is a remortgage?

Remortgages (or remortgaging) is the process of renewing, changing or taking out a new mortgage to replace your current one. Most people will need to consider remortgaging as they approach the end of their current deal. For example, if you’re 6 months away from your fixed rate ending, it may be time to start exploring options. There are other reasons why you may consider remortgaging, take a look below at the reasons you may want to consider a remortgage.

Why remortgage?

Your current deal is ending

When your fixed rate ends, if you don’t remortgage, your interest rate will typically change to the lenders Standard Variable Rate (SVR). This tends to be higher than fixed deals and can mean you end up paying a lot more interest if you don’t take action. We advise having a chat with an expert 6 months before your deal ends to ensure your plans can be put in place.

Home Improvements

Getting bored of the same kitchen or bathroom? Maybe you want to increase the size of your home with an extension instead of moving home. So long as you have the available equity in the property, we can help release this to fund home improvements. This is usually a more suitable option than alternative finance.

Changes in circumstances

Perhaps you have welcomed a new addition to the family since you took out your mortgage, or you could have had a change in your income/ outgoings. Remortgaging gives an opportunity to re-assess your budget and make any changes. This could be making your mortgage shorter, longer or moving to a cheaper lender if your credit has improved.

You want to borrow more

There are other reasons you may wish to explore borrowing more through your mortgage. Most lenders have a set list of acceptable reasons to borrow more and sometimes they can ask for proof. If you’re thinking of accessing an amount for another reason, have a chat with an expert to see if it is suitable to do so from your mortgage.

Your current deal is ending

When your fixed rate ends, if you don’t remortgage, your interest rate will typically change to the lenders Standard Variable Rate (SVR). This tends to be higher than fixed deals and can mean you end up paying a lot more interest if you don’t take action. We advise having a chat with an expert 6 months before your deal ends to ensure your plans can be put in place.

Home Improvements

Getting bored of the same kitchen or bathroom? Maybe you want to increase the size of your home with an extension instead of moving home. So long as you have the available equity in the property, we can help release this to fund home improvements. This is usually a more suitable option than alternative finance.

Changes in circumstances

Perhaps you have welcomed a new addition to the family since you took out your mortgage, or you could have had a change in your income/ outgoings. Remortgaging gives an opportunity to re-assess your budget and make any changes. This could be making your mortgage shorter, longer or moving to a cheaper lender if your credit has improved.

You want to borrow more

There are other reasons you may wish to explore borrowing more through your mortgage. Most lenders have a set list of acceptable reasons to borrow more and sometimes they can ask for proof. If you’re thinking of accessing an amount for another reason, have a chat with an expert to see if it is suitable to do so from your mortgage.

How to remortgage.

We’ve broken down the remortgage process into 5 easy steps.

1. Timing

Start speaking to an adviser 6 months ahead. Mortgage offers are typically valid for 6 months whilst existing customer deals (product transfers) can be locked in around 3 months before your current deal ends.

2. Explore

Look over your options with an adviser and discuss your aims for the remortgage. This is where you can start to see what new payments will look like and understand how you can achieve your goal.

3. Apply

Submit your remortgage application. If you are moving to a new lender, they will need to carry out a valuation and review your application, this can take a few weeks. If not, the process is much quicker.

4. Legal work

If you have moved to a new lender, they will need to carry out legal work to remove the old lender in place of your new one. Most lenders offer this for free, or they could be cashback if you appoint your own.

5. Completion

Once all the paper work is taken care of, your adviser will instruct the solicitor to complete the new deal when the time is right. This is usually at the same time as your current deal ending.

Ready to explore?

Not ready for a full consultation but want to get an idea of your options? Take a look at our remortgage calculator to see what deals are available. Click to see if your eligible.