What is a remortgage?
Put simply, remortgaging is changing from one mortgage lender to another, usually to improve your interest rate and save some money! Many of you will have at least one mortgage for a large proportion of your adult life. During this time, remortgaging regularly and at the right time is one of the best ways to keep your mortgage payments down and ensure that you pay as little interest as possible. If you want to make changes to your mortgage, such as borrowing extra to carry out work on your home – remortgaging is usually the best time to do this and we can talk you through how.
When to remortgage?
Most mortgage schemes only run for a specific period of time, commonly 2, 3 or 5 years. At the end of this period, your interest will usually change to the lender’s Standard Variable rate (SVR) which can be significantly higher – this is the right time to remortgage as you’re no longer tied into the scheme and could make huge savings by shopping around. That’s where we step in to research across the market and find the best mortgage for you - for free. There’s no catch.
- We advise that you try to contact us to start the remortgage process at least 3 months prior to the date your existing mortgage scheme ends. This allows a comfortable amount of time for all parties involved in the remortgage to carry out their work and ensure that the new scheme starts at the right time. If your scheme has less than 3 months remaining or it’s already ended, contact us as soon as possible - you’re probably paying significantly more than you should be! If you don’t know when your scheme ends, you can contact your existing lender or check your original mortgage paperwork.
- We’ll take your information and then research the market to find the best scheme that you’re eligible for. We’ll also explore what schemes your existing lender will offer you to stay with them as these are sometimes competitive and it can be a quicker process than remortgaging to a new lender.
- If you’re happy with the new scheme, we’ll submit the application for you, confirm what documents you need to send and will oversee the application until it’s fully agreed, taking away as much of the legwork from you as possible.
- You’ll need a Solicitor to oversee the remortgage which we’ll assign to you if you don’t have one. Don’t panic, the legal costs are a lot lower than when you first purchased the property and some lenders will give cash-back to help with these costs, which we’ll factor in when shopping around for you.
- After the mortgage is fully agreed and when the Solicitor has completed their work, they will organise completion of the remortgage and ensure that the new scheme starts on the correct date.
- We’ll put you in our diary and will contact you in the future when the new scheme ends, to do it all over again!
Your home may be repossessed if you do no keep up repayments on your mortgage.