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8 tips for remortgaging your property

If you already have a mortgage, you will most likely hear about remortgaging when your current mortgage product is coming to an end. However, remortgaging can also be used as a way to help you save money, pay off existing debts, or fund an expensive purchase or project, like a home renovation. 

Simply put, a remortgage is where you switch from one mortgage lender to another while remaining in the same property. Alternatively, you could own your home and want to remortgage in order to get some equity back from your property. 

Whether it’s your first time remortgaging, or you’ve been through the process before, we’ve put together our top tips on how to remortgage a property to make it as easy as possible for you. 

Here are our 8 remortgaging tips:  

1. Be clear on the reasons why you’re wanting to remortgage 

There are many different reasons as to why you’d want to remortgage, so it’s important to be certain on your requirements from the start. This will enable you to weigh up your best options, which will vary depending on what you’d like your outcome to be. 

If you’re remortgaging to get a better deal, or if your current product is almost expired, you can choose to: 

  • Switch your product to another lender 

  • Stick with your current lender by swapping the mortgage you already have for another one 

On the other hand, you may be looking to remortgage if the below applies to you:  

  • You want to borrow more money in order to take equity out of your home 

  • You’d like to consolidate your debts (clear credit cards and loans etc.) 

  • You now own more of your property, so have a lower loan-to-value (LTV) 

  • The deal you currently have doesn’t fit your needs anymore. This may mean that you want more flexibility or can get a cheaper mortgage deal elsewhere 

  • You want to beat a rate hike due to your monthly repayments being affected by the increase in interest rates 

Once you’re clear on why you’re wanting to remortgage your house, it will make things easier when you get in touch with a mortgage broker. 

2. Research the best deals with the help of a mortgage broker 

Although you can research deals on the market yourself, an expert mortgage broker can help to make this process stress-free.  

They'll have access to a wider range of deals, preferential rates, as well as direct contact with lenders should your remortgage requirements not be as straightforward. For instance, if you have bad credit or recently became self-employed. 

Not only can a mortgage broker help with searching for the best deals, they will also handle the application process for you. 

At Fidelius Mortgages, we follow these simple steps when a client is looking to remortgage:  

  • We ask you to contact your current lender for a redemption statement, this way we know how much is outstanding on your mortgage 

  • Your assigned mortgage advisor will search the market for the best deals based on your remortgage needs 

  • If you’d like to proceed, we’ll then apply for an Agreement in Principle (AIP), which will be sent to your lender 

  • Presuming that your AIP is agreed, your mortgage advisor will begin your application and submit your mortgage 

  • After your lender has carried out a valuation and a mortgage offer letter has been accepted, the legal work is then carried out by an appointed solicitor up to completion of the mortgage 

Choosing a mortgage broker, like Fidelius Mortgages, can help you to save both time and money.  

3. Don’t always stick with your current lender 

Always research the market before deciding to stick with your current mortgage provider.  

Although it may feel like you’re saving yourself time by sticking with the same lender, you could still find a more suitable deal elsewhere, helping to save money. 

In addition to this, while it could speed up the process in some cases, you’ll still be required to make an application for credit. This means you’ll have to provide evidence of your finances, especially if your circumstances have changed.  

As the mortgage market is highly competitive, it’s likely that there is a better offer, which your mortgage broker should be able to help you find. 

4. Make sure you’re aware of the potential fees 

It’s important to be aware of the added fees that could be involved with your house remortgage, so be sure to budget it into the overall cost of your mortgage. 

Additional fees to expect could include:  

  • Exit fees – these are the admin costs for when you’ve paid your mortgage in full 

  • Early repayment charge – if you decide to leave your existing mortgage early, there could be costs involved to break your contract 

  • Arrangement fees – some mortgages come with product or arrangement fees, so always check if there are any add-ons involved 

  • Legal fees – this is where you pay your solicitor or conveyancer to cover their work involved in the mortgage application process 

  • Valuation fees – sometimes a lender will charge you a fee for them to carry out a valuation on your property 

  • Broker fees – you may be required to pay a mortgage broker for their services 

If you’re unsure on any of the potential fees, your mortgage broker will be able to discuss this further with you. 

5. Don’t leave it too late to start the process 

The process of remortgaging a house can take approximately four to six weeks to complete, depending on your circumstances. That’s why it’s recommended you start considering your options roughly 3-6 months before your mortgage product comes to an end. 

If your remortgage offer isn’t completed beforehand, you could be moved onto a more costly rate which would increase your monthly payments, leaving you out of pocket. 

For those of you that previously used a mortgage broker to secure your mortgage, they should get in touch with you to remind you that it’s time to start looking for deals. This is another reason why it’s a good idea to go through a mortgage broker, rather than remortgaging yourself. 

6. Pick your date carefully to avoid additional fees 

Along with not leaving it too late to remortgage, you also need to be careful if you’re planning on remortgaging early. 

Some mortgages have an early repayment change if you want to remortgage during the initial incentive period. This could cost you thousands of pounds (up to 5% of the outstanding mortgage balance).  

Make sure that you check if your mortgage has a charge, and how much it is. This way you can evaluate whether it’s still a financially viable option. 

7. Review any of your financial or lifestyle changes 

Since you last took out your mortgage, your personal circumstances may have changed. This will need to be taken into consideration before you apply for a new mortgage, as it could affect whether you’re able to keep up with payments. 

Ways to help you prepare for a remortgage, include: 

  • Assess your current incomings and outgoings  

  • Check your credit report to see what your score is. See if any improvements can be made and that it’s accurate 

  • Don’t apply for any credit right before beginning your application 

  • Use a mortgage calculator to get an indication of how much you could potentially borrow and what the monthly costs may be 

  • Register to vote as a way to prove your identity 

  • Keep on top of your monthly bills to prove you can keep up to date with payments 

  • Avoid any erratic or unnecessary spending 

If your financial situation has changed, a good mortgage broker should be able to help you find a lender that’s sympathetic to your needs. 

Please note that if you fail to keep up with the mortgage repayments, your home may be repossessed. 

8. Collect all the required information and paperwork ahead of time 

You can help speed up the remortgage process by getting all your paperwork together in advance.  

At Fidelius Mortgages, we usually require:  

  • Proof of identity (colour copy of your passport or identity card)  

  • Proof of address (such as bank statements, council tax letter or gas and electric bills) 

  • Proof of income (from your employer OR 3 months of payslips)  

  • Your latest P60 tax form 

  • Financial history (3 months of bank statements)  

Please note that some lenders may have the right to ask for additional information not listed above. 

Remortgaging a house if you’re an expat 

If you’re a UK expat thinking of remortgaging your UK property, the process will be slightly different.  

Some mortgage providers won’t lend to expats due to the potential risks. You may find that because of these risks, your existing lender won’t be willing to switch your product or release equity, depending on your reason for remortgaging. 

Due to this, it’s recommended that expats liaise with a broker who specialises in expat mortgages, like Fidelius Mortgages. 

Get in touch with a mortgage expert 

If you’re interested in finding out your remortgaging options, get in touch with one of our friendly mortgage brokers. 

At Fidelius Mortgages, our specialist advisors will be there every step of the way to help you secure the best deals on the market, while supporting you with the application process. 

We pride ourselves on having the correct work ethos and culture needed to provide excellent customer experience. 

Your home may be repossessed if you do not keep up on your mortgage repayments.   

Posted on October 14th 2022

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