What is remortgaging?
You may have heard people talk about the benefits of remortgaging but if you’re asking what is remortgaging, you’ve come to the right place. We’ve put this article together to explain what is remortgaging, the benefits of remortgaging and how the remortgaging process works.
Whatever your reason for wanting to remortgage, whether you want to release equity from your home to fund home improvements or you want to save money on your mortgage payments each month, read on to find out everything you need to know.
So, what is remortgaging?
Put simply remortgaging is when you apply for a new mortgage with a different lender but stay in your current home.
What are the benefits of remortgaging?
There are many reasons why people remortgage, these include:
- Wanting to save money each month on your mortgage payments by switching onto a cheaper deal;
- Your current deal is due to end soon and you want to move to a new deal to avoid being rolled onto your lender’s Standard Variable Rate which could be much more expensive;
- You’ve decided to release equity to fund home improvements;
- Or you’ve chosen to release equity to pay off debts;
- Another reason is so that you’re able to make more overpayments on your mortgage than your current mortgage deal allows you to.
How does remortgaging work?
Don’t be put off by the idea that it all sounds a bit complicated because not only is it usually a simple process it’s also something we can help you with too.
So if you’re asking how does remortgaging work, here are the steps you need to take….
1. Start shopping around
So where do you begin? Your first step is to start shopping around for the right mortgage for you. When it comes to remortgaging you’ll find there’s a huge amount of options out there so it might seem a bit daunting navigating this by yourself. However this is where our team of expert mortgage advisers can help you. They’ll find out from you what you want to achieve: do you want to release equity from your home to pay for home improvements or are you just looking to save cash each month by moving onto a cheaper deal? Your mortgage adviser will then explain your mortgage options and help you choose the right one for you.
2. Find out if you need to pay any fees
If you want to leave your current mortgage deal before it ends then you may have to pay a charge to your lender, which is known as an early repayment charge. It’s vital that you find out if you’ll need to pay this because it can be a significant amount. This is another area our expert mortgage advisers can help you with. They’ll be able to explain any fees you’ll need to pay if you remortgage. However it could be the case you’ll still end up saving financially even if you do need to pay an early repayment charge. The key is to get advice so you know what your options are.
3. Making your application
So you’ve picked the right mortgage and you want to go ahead? The next step is to make your mortgage application. But don’t worry, this is something else our expert advisers can assist you with. As when you apply for a mortgage, when you remortgage the lender will want you to show you’re a low-risk borrower. As part of the process you’ll need to provide paperwork like bank statements. Plus the lender will check your credit report too.
How long does it take to remortgage?
This varies but it generally takes 4 to 8 weeks to remortgage. However it can take longer so it’s a good idea to give yourself a bit more time if you can.
Can you help me?
Absolutely. We know there’s a lot to think about when it comes to remortgaging so that’s why our team of mortgage advisers are here ready to help you. So if you’d like to find out more about your remortgage options speak to one of our expert mortgage advisers for a no-obligation chat on 07808 645108 or click here to arrange a call back
