When reviewing your mortgage, you might come across ways to save money and alter your rates. If your deal is coming to an end, moving quickly can land you a better deal and lower interest rates which can be achieved through remortgaging.
When should I consider remortgaging?
There are various situations when remortgaging might be appropriate for you however, firstly you should carefully calculate fees you may encounter while remortgaging to get an accurate forecast of the money you are saving overall.
To avoid being moved to your lenders standard variable rates (SVR) be sure to look around and prepare to remortgage in plenty of time before your fixed term mortgage deals ends.
It’s a good idea to consider remortgaging if the value of your property has increased significantly as you now may be in a lower loan-to-value band.
How long does remortgaging take?
With the timely input from your bank, broker and solicitor it can take around 5 weeks to complete a remortgage. Accuracy of the information you provide and the suitability of your current situation can make this timescale smaller.
How much can I remortgage for?
Typically you would borrow the equivalent amount outstanding on your current mortgage loan. If you are remortgaging to release equity for home improvements you may want to borrow more, but your financial situation will be considered by lenders.
Questions & Answers
Yes, some lenders will consider this as a new purchase while others will still class it as a remortgage. Showing this much financial stability will open up a lot of mortgage options and make the overall process a lot smoother.
Remortgaging can release equity that can then be used for home improvements or paying off debts. This can be done instead of taking out a personal loan.
Yes, your house will be valued as part of the remortgaging process to calculate your loan to value.