If you’re looking to remortgage, then using an expert broker like Mortgage360 is the best way forward to ensure your new remortgage deal gets you the most competitive rate, combined with expert advice on every aspect of the remortgage process.
We work from a comprehensive panel which is representative of the whole of the market. This means we’re able to provide you with honest and impartial advice, searching the mortgage market to find the product that’s right for you, tailored to meet your precise needs.
Alongside your remortgaging requirements, we can help you to assess your complete family protection packages, providing advice on associated products such as life insurance, critical illness insurance and income protection to safeguard your financial position.
What is remortgaging?
It’s s simple and straightforward concept – a remortgage is when you pay off an existing mortgage by securing a new one.
You’re refinancing the mortgage on your existing property by replacing it with another, via a new lender.
The decision to remortgage can be prompted by a range of different circumstances. You may be approaching the end of your current deal, you may feel you can secure a better deal than your current lender is offering, or you may be planning home improvements or other life changes and want to borrow more money against your existing property.
Do I need a deposit to remortgage?
Not usually. The equity you already have in your existing home will serve as your deposit. (Equity is the difference between the current value of your home and the mortgage you have secured against it.)
In addition, the remortgage process is usually more straightforwards than applying for a new mortgage deal on a new property
How long does it take?
This will vary dependent on your circumstances, but a general rule of thumb is between four and eight weeks.
If you’re remortgaging with your existing lender, then they will already have most of the relevant information, so it can be significantly quicker. Changing to a new lender will take a little longer.
At Mortgage360, we’ll provide you with all the information you need to speed up the remortgage process, including handling the paperwork and advising you on exactly what you need to ensure the remortgage is quick and seamless.
Good reasons for remortgaging?
So why should you consider remortgaging? Here are a few key benefits to consider:
– Avoid moving home
You may need more living space or space for an elderly relative. Moving home is a costly business when you factor in stamp duty, legal costs, estate agency fees, removals and upheaval. Remortgaging to release equity to extend your existing home could be a better decision.
– Save money
Your financial situation may have changed. Remortgaging with a new mortgage lender or even your current provider can enable you to secure a better deal and reduce your monthly repayments, with the potential to make significant savings over time.
– Consolidate your financial position
Some debts charge much higher levels of interest than your mortgage, including most credit cards. At Mortgage360, we’ll work closely with you to assess your existing debts and work out whether a remortgage will be financially beneficial for you, potentially repaying less over time.
– Shorten your mortgage term
Be mortgage free sooner – when interest rates are high it makes sense to repay your mortgage sooner, often saving thousands of pounds over the entire mortgage term.
Whether you have had your existing mortgage for many years, or are just approaching the end of your redemption period, it’s worth assessing your position and looking at how your home can play an integral role in your finances.
Do you actually need a mortgage broker to remortgage?
Not technically, no, but an impartial mortgage adviser will almost certainly be able to secure the most competitive deals tailored to you, as well as help you with all the paperwork and reduce stress levels! Most experts recommend commissioning the skills and knowledge of a mortgage adviser to broker the right deal.
At Mortgage360, we look at your current deal, and your personal and financial circumstances and assess your attitude to risk. We’ll then scour the market to find the right mortgage deal to match your requirements. We’ll save you effort, time and money.
What are the benefits of remortgaging?
Key to remortgaging is the potential to secure a better deal and reduce your monthly repayments, thereby saving money. This is dependent upon the state of the market; when interest rates are rising, you may need to mitigate the effects of this.
– Reduce the cost of your mortgage
Special introductory rates may have pegged your mortgage lower for a period of time, and you may now be facing increased repayments. We can help by searching the market for preferential products to match your requirements and financial circumstances.
– Free up capital
Dependent upon the equity in your home, you may be able to release cash to pay for anything from home improvements to lifestyle changes and debt consolidation.
– Flexibility for evolving circumstances
You may require more flexibility from your mortgage if your income has either increased or decreased since you secured your existing mortgage. Remortgaging and implementing structural changes such as changing the loan term can help with this.
When can I remortgage?
It’s best to start looking at least 6 months before your current mortgage deal expires, to avoid automatic transfer to your lender’s standard variable rate (SVR).
Despite recent surges in interest rates, they are now levelling out, but always with the possibility of future increases. We can help you to lock in a mortgage deal that suits you so you don’t get caught up in a more expensive default rate.
How do I remortgage?
Call Mortgage360 for a no-obligation consultation and we’ll get the ball rolling.
Staying with the same lender
We’ll look closely at the benefits of staying with your existing lender for a product transfer and/or further advance, or moving to a new lender.
Your current mortgage provider has all your details on file, so the process will be quicker and will incur fewer additional fees. Remember that if you’re wanting to borrow more money, additional checks will be required.
It might be easier too, because your existing lender is aware of your ability to repay a loan over time, making the application quicker and simpler, often without the need for extensive credit checks.
Moving to a new lender
This will require a solicitor and may include other additional fees. However, it could prove to be the better decision over time.
We could secure a better mortgage rate for you, and there are often additional benefits such as free legal fees or even cashback incentives.
If your financial circumstances have changed for the better since you made your original mortgage application, many more options may now be on the table for you.
How to work out the LTV when remortgaging?
Your Loan to Value (LTV) is the ratio of what you’re borrowing compared to the value of your property. It will change over time, as you repay the loan, your mortgage balance decreases and your property generally increases in value.
In principle, the better your LTV, the better interest rates you will qualify for. Although most lenders require an LTV of less than 80%, there are providers who make exceptions, and it is possible to secure a mortgage with an LTV of 95%.
When remortgaging, lenders usually require a remortgage valuation on your home to assess its current worth in relation to what you’re wanting to borrow on it.
Note: Remortgage and Additional Borrowing (Further Advance) lending is usually restricted to 90% LTV. Self-employed applications may have a maximum LTV of 85%.
What are the potential costs involved?
When remortgaging, you will incur similar fees to a standard home mover mortgage, including arrangement and legal fees and broker fees. In addition, dependent upon the terms of your original mortgage, you may have to pay exit fees (Early Repayment Charges).
These fees depend upon your current mortgage and your new deal. Although they are usually minimal, in some cases they can be quite considerable. Your mortgage adviser will help you to mitigate this risk and assess the benefits and disadvantages in financial terms.
What can I do to lower fees and improve the offers I receive?
It’s always worth looking closely at your current financial circumstances. Check your credit history and bank statements and take steps to repair them as required.
A few easy steps that will help here:-
- Make sure you check your credit score before you start the process and take steps if required
- Don’t apply for any form of new credit just before you apply for your mortgage
- Be realistic about the value of your property
- Start the process early to give you time to optimise
- Consult a mortgage broker to assess your options and opportunities
Why choose Mortgage360 for your remortgage?
At Mortgage360, we’ll help you figure out what’s right for you. We’ll identify the risks and possible outcomes of the remortgage process and advise you accordingly.
We have access to lenders’ credit and affordability ratings and can match you to the right deal across the market. In addition, we have the established expertise to provide you with a comprehensive range of mortgages and insurance tailored to meet your precise needs.
We constantly monitor and assess the marketplace for the most competitive mortgage deal, then fine-tune a financial package that will help your remortgage.
Complete our short form to organise a no obligation chat to start your remortgaging process.