What is remortgaging?
Remortgaging is when you move your mortgage on your existing property, from one lender to another. Your new mortgage will then replace your old one.
You may want to remortgage if you’re:
- Coming to the end of your existing mortgage rate
- Looking for a better deal than your current lender can offer
- Planning to borrow more money against your property
How long does the remortgage process take?
Remortgaging your home typically takes 4 to 8 weeks after applying. The amount of time needed will depend on your individual circumstances and remortgage needs.
Providing clear, accurate, and relevant documents when needed, such as proof of earnings can speed up the process
Why do most people remortgage?
There are various different reasons why people choose to remortgage. Some of these might include :
- Take advantage of low-interest rates
- Your current fixed deal is up for renewal
- You want to move from interest-only to repayment
- You want to be on a better rate than you’re currently on
- You want to be able to make overpayments
- You want to borrow more money
For instance, you may have initially taken out a fixed-rate mortgage where you pay the same amount every month and the interest rate stays the same.
However, once this initial period has ended (it could have been a 2,3,5 year fixed) you will fall onto a standard variable rate (SVR) where you could end up paying a higher interest rate than you were previously.
This is usually the time when many homeowners look to remortgage in order to switch to a better mortgage deal.
When should you remortgage?
You can remortgage anytime but, to avoid potential early repayment charges, people tend to look at remortgaging towards the end of their existing mortgage rate.
If you choose not to review your mortgage rate before it ends, then you will likely be moved onto your lender’s standard variable rate (SVR) and you could end up paying more. This is because the SVR is generally higher than the rate you were on.
Keep in mind – if you’re not coming to the end of your existing mortgage rate, you’ll need to check whether there’s an early repayment charge or fee for exiting your current mortgage.
Plan your next remortgage steps with an adviser from Mortgagemove.
If you are unsure about remortgaging, seek mortgage advice from an expert.
We have our fingers on the pulse of the mortgage market and are equipped with in-depth knowledge of the different mortgage products on offer. Our insider knowledge can make your remortgaging process simple. So are you ready to find the right mortgage for you? Speak to us today.
Phone us directly on 0333 005 0333,
or text ADVICE to 82228.
or email us at [email protected]
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Approved by the Openwork Partnership on 21/08/23
Mortgage Move is a trade name of Nicholas Financial Limited, which is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority.