What is remortgaging?
Remortgaging is when you switch from your current mortgage deal to another, with a different provider. It gives you the option to shop around and choose a different deal that is better than the one you are currently on.
The outstanding mortgage amount is transferred to another mortgage product, which will most likely have a different interest rate and different monthly payments.
Why do people bother remortgaging?
This is a question that we hear a lot. There are many reasons why it can sometimes be a good idea to remortgage to a better deal.
Once your current mortgage deal, which could be a fixed or variable rate, comes to an end, you normally revert onto the lenders variable rate mortgage or SVR. This could be a higher rate than your current fixed or variable rate, therefore, your monthly payments could increase. If you chose to remortgage at the end of your current product, then you’ll hopefully be able to reduce your monthly payments with a mortgage offering you a better rate.
A lender’s variable rate mortgage can change at any time, forcing your monthly payment to increase or decrease with very little warning, which is another reason why people choose to remortgage onto another fixed rate deal.
How does remortgaging work?
The remortgaging process can appear complicated, which is where we come in. We’ll make the whole process as easy as possible, taking most of the stress away from you. Your dedicated mortgage adviser will be on hand to guide you through these steps along the way:
- We will work out exactly how much you can afford by checking your finances, working out your monthly incomings and outgoings.
- We will search the whole of the market for the best deal available to you.
- We will make sure that it’s the right time for you to remortgage in order to avoid any early redemption penalties.
- Finally, we will help you apply for your remortgage.
How long does a remortgage take?
It’s pretty difficult to give an exact timeline on how long it takes. However, a remortgage can take between 4-8 weeks depending on the lender and any specific requirements you might have.
Are there any fees associated when remortgaging?
You can plan to move your mortgage before the end of your current product end date, but we’d normally advise you to wait until the right date in order to avoid any early repayment charges.
Many lenders offer incentives when you remortgage and as brokers, we often get access to deals with no product fee, no valuation and no legal fees.
Here at Mortgagez, our team of fully qualified mortgage advisers will always be on hand to help you every step of the way in obtaining a new mortgage. Best of all, our service won’t cost you a penny when you go via our online portal. Visit our website today and obtain a quick quote to see how much you could save on your next mortgage.
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PLEASE NOTE: Article written 2nd December 2021. Information contained within this article is likely to change and therefore should not be relied upon or form part of any form of decision making without seeking professional advice. *
YOUR HOME MAY BE REPOSSESSED IF YOU DON’T KEEP UP REPAYMENTS ON YOUR MORTGAGE
Any guidance and/or advice contained within this document is subject to the UK regulatory regime and is therefore restricted to consumers based in the UK. Any technical or regulatory information contained within this document was correct at the time of producing it but as it may be subject to change it should not be exclusively relied upon when making a financial decision. The Financial Conduct Authority does not regulate advice on Buy to Let mortgages.
Article written: December 2021 060121 MZ000235
