What Is A Remortgage?
A remortgage is where you look to take a new mortgage on a property which you already own. Normally this will be to replace an existing mortgage you already have in place against the property.
Generally people will look to remortgage when they are coming towards the end of their deal with their current mortgage lender.
What Is The Remortgage Process?
Remortgaging is a term for changing your mortgage from lender to another when your current deal comes to an end. If you choose to take a new mortgage deal with the same lender this is known as a Product Transfer.
To get the best remortgage deal timing is vitally important.
My Mortgage Deal Is Coming To An End When Should I start Looking At My Remortgage Options?
If your deal is coming to an end you can start to look at remortgage deals roughly six months prior to the expiry of your current deal. If you don’t remortgage your current mortgage deal will move over to your current lenders Standard Variable Rate of interest which could be more expensive.
What Documents Will I Need To Provide When I Remortgage?
The documents required for the remortgage application are generally the same as the documents you need to provide when you initially purchase a property. Most lenders will require proof of income via your payslips if you are employed or tax returns if you are self-employed. Potentially you may also be required to provide bank statements so your expenditure can be assessed and proof of ID. Your mortgage adviser will confirm to you which documents are required prior to making a mortgage application.
I Am Worried About Rising Interest Rates Can I Remortgage Early?
Potentially you may be able to remortgage early but it is important to ensure that this is the most cost effective and best thing for you to do. If you have a variable or tracker rate mortgage you may be able to remortgage with no early repayment charges being payable. By potentially remortgaging to a fixed rate mortgage you will be able to manage your budget on a monthly basis.
However, if you have a current fixed rate mortgage and wish to remortgage you may find that there is a high early repayment charge payable. With this in mind it may not be cost effective for you to remortgage at this time. Speaking to a mortgage adviser will help you to decide what the best course of action is based on your personal circumstances.
What If I Don’t Remortgage When My Current Deal Ends?
You do not have to complete a remortgage when your current deal expires. If you choose not to remortgage you will transfer to your lenders Standard Variable Rate. These Standard Variable Rates tend to be higher than other mortgage deals so your payments may increase.
I Am Currently On My Lenders Standard Variable Rate Should I Look To Remortgage?
As a rule it is better to remortgage than to remain on your lenders Standard Variable Rate(SVR) as the SVR rate will often be higher than the interest rate on a fixed rate mortgage. If you are on your lenders SVR you could potentially save hundreds of pounds a month. Speaking to a mortgage broker before your deal ends with your current lender will normally mean significant savings for you.
Can I Borrow Additional Money When I Remortgage?
Some customers will look to borrow additional funds when they remortgage their property. This could be for a number of reasons such as home improvements or to consolidate debts. This may not always be the best option for you so you should talk to your mortgage adviser to see if adding additional borrowing when you remortgage is the right thing to do.
Is Raising Additional Funds When Remortgaging A Sensible Thing To Do?
People may wish to raise additional funds for a number of reasons and whether you should add additional funds to your mortgage will be dependent on a number of factors. If you wish to raise additional funds for example to consolidate your debts it will need to be proved that doing this is justifiable and affordable.
When raising additional funds via your mortgage it is very important to get advice because additional secured borrowing against your home may result in you paying more interest over the long term. By speaking to a mortgage adviser you can be sure that raising additional funds is the right thing for you to do based on your personal circumstances.
What Factors Will Be Taken Into Consideration When Remortgaging To Raise Additional Funds?
Affordability is the key factor when remortgaging to raise additional funds. Your mortgage adviser will confirm the maximum amount you will be able to raise as any remortgage must remain affordable from the lenders point of view. Any new lender will make a full assessment of your income, expenditure and credit report.
Other factors such as the current value of the property, it’s location and condition will dictate how much extra you can borrow when remortgaging.
How Much Extra Can You Borrow When You Remortgage To Raise Additional Funds?
This will depend on your personal circumstances. However, the maximum amount you could borrow when remortgaging would be up to 95% of the current value of your property.
I have early repayment charges payable should I remortgage?
In most circumstance the answer to this questions is no. However, it will be dependent on your personal circumstances and how high any early repayment charges are. If you are looking to move mortgage lenders for a cheaper interest rate you will need to ensure that the cheaper rate saves you enough money to make it worth paying the early repayment charges.
Can I Remortgage If I Have Had Credit Issues?
This will depend on the level of credit issues you have had and how recent they have been. Here at PAB Wealth management our mortgage advisers are specialists in helping clients who have had adverse credit and we will do everything we can to assist you with your remortgage.
Can I Remortgage My Interest Only Mortgage To A Repayment Mortgage?
You may be able to remortgage your interest only mortgage and change it to a repayment mortgage to enable you to ensure that the mortgage balance will be repaid at the end of your mortgage term. This will be dependent on your current circumstances as any new mortgage lender will need to ensure that the new mortgage is affordable for you.
Are There Any Fees Payable When I Remortgage?
There may be fees payable when you remortgage but this will be dependent on your personal circumstances. Lenders may charge an arrangement or valuation fee when you are looking to remortgage. However, there are mortgage deals available for remortgage customers where these fees are not charges.
Most lenders will offer free legal services when you remortgage as an incentive to move your mortgage to them.
How Can PAB Wealth Management Help Me With My Remortgage?
After our initial discussion we will advise of the best remortgage deal that is available to you based on your personal circumstances. We will advise when the best time is to start the remortgage process as you will want to ensure that you do not pay a higher variable rate in relation to your current mortgage.
We will compare whether remortgaging to a new lender or transferring to a new product with your current lender is the best thing for you to do.
Your home/property may be repossessed if you do not keep up repayments on your mortgage