Thinking about remortgaging?

Here are our frequently asked questions.

What does remortgaging mean?

The term remortgage, or remortgaging is the process of moving your existing secured home loan from one lender to another. Many of our customers looked to do this every few years to keep their monthly payment low.

How does it work when you remortgage?

Firstly, we will look at your existing mortgage loan and property value. We will then get to know you a little better and understand what is happening in your life for the next few years. We will then look at what your existing mortgage lender will offer you, and compare that against the other mortgage lenders that we deal with. Once we have found the perfect mortgage for you, we will submit everything to the mortgage lender to start the remortgage process. The following gives you a simplified version of how this happens.

1. Find out about your needs and find the perfect mortgage for you.
2. Application submitted to the mortgage lender.
3. All required documents sent to the mortgage lender.
4. The mortgage lender will check everything.
5. The mortgage lender will send a surveyor to value the property.
6. Once the mortgage lender is happy with everything, they will issue a mortgage offer.
7. It’s time for the solicitor to complete the legal part of checking the property title.
8. The solicitor will then pay off the current mortgage lender and everything is transferred to the new mortgage lender.

This process can take anywhere from 2 weeks to 6 months depending on how complex the situation is. Don’t worry we will check and chase everything until the big day.

Can you borrow more money when you remortgage?

Yes, you can borrow more money when you remortgage subject to a couple of things.

1. The new loan doesn’t exceed the maximum that your income will allow.
2. There is enough equity left in the property to meet the lenders criteria. Equity is the term to describe the amount of money left if the property was sold and the loan paid off, or your share of the property.

People borrow extra money for lots of different reasons, here are a few:

• Home improvements, to add more space or an extra bedroom.
• Pay off unsecured loans or credit cards. This can reduce your monthly outgoings.
• Remortgage to raise extra money to pay off a partner or spouse as part of a separation or divorce.
• Raise money to buy another property.
• Remortgage to borrow extra money to help your children with university or set up a new home.

Do I need a solicitor to remortgage?

If you are moving your mortgage from one lender to another then you will need a solicitor to deal with this for you. Sometimes a mortgage lender may offer you a free legal service to switch your mortgage. The solicitor’s main role in the transaction is:

• Your identity.
• Get documents signed.
• Check the property is suitable for the lender.
• Complete money laundering checks.
• Pay off the old lender.
• Be an extra pair of eyes and ears for the lender to make sure everything matches the mortgage application.

Can I remortgage to buy my partner out?

Yes, you can remortgage your current home to buy out a partner or spouse, but the existing or new lender will usually need you to meet the following criteria.

1. You need to be able to make the new mortgage payments on your own. Your income needs to be enough to support the mortgage loan.
2. After paying off your partner or spouse there needs to be enough equity left in the property to meet the lenders criteria.

If you can’t meet this criteria it may be better to sell the property and buy something cheaper with the money you have left.

Is it worth remortgaging?

This isn’t a simple yes or no. It is different for everyone and it depends on your existing mortgage terms and what is available in the rest of the mortgage market.

The best was to know for sure is to get in touch and we can let you know. We would love to hear from you.

Who has the lowest remortgage rates?

Remortgage interest rates change daily and they may not all be available to you based on the remortgage lenders criteria. The best thing to do is get in touch, so we can find out all about you and find a perfect mortgage rate for you.

Can you switch mortgage company?

Yes, you can switch to another mortgage company. There are a couple of things that we always check first.

1. Are there any penalties if you change?
2. Does your current lender have any cheaper deals they could offer you to stay.

This is something we can check for you.

Feel free to get in touch and we can let you know. We would love to hear from you

Do I need a deposit to remortgage?

You don’t need a physical deposit, but you do need what is called equity. Equity is the difference between the property value and the amount you owe. So, if the property is worth £250,000 and you have a mortgage of £150,000 then you will have £100,000 in equity. Your equity share in the property is 40%. Generally bigger the amount of equity within your property, the better the mortgage terms you will be offered.

When can I remortgage my house?

Technically you could remortgage your house at any time. The main thing to check is if your existing mortgage lender has a penalty if you leave them, known as an early redemption penalty. Most lenders will offer you a special rate when you borrow from them at the start and in turn, they want you to stay with them for a certain period of time. If you leave during the agreed time, they may charge you a penalty to leave. It still may be financially beneficial to leave your current lender even if they are going to charge you. This is something we can check for you.

Feel free to get in touch and we can let you know. We would love to hear from you

How many times your income can you get a mortgage for?

Mortgage lenders calculate how much they will lend you either as a multiple of your salary or a more complex calculation.

The simple form is your annual salary x 5. So, if you earn £30,000 per year x 5 the lender would offer you £150,000.

Other things lenders consider when calculating the maximum loan are:

• Time in current job.
• The way you are paid.
• Commission, bonuses and overtime.
• Any debts.

The amount you can borrow can vary drastically from lender to lender, so don’t get disheartened, get mortgage advice from someone that deals with more than one lender and get a bigger picture of what is available to you.

How long does it take to remortgage?

The remortgage process can take anywhere from 2 weeks to 6 months depending on how complex the situation is.

The following gives you a simplified version of what happens.

1. Find the perfect mortgage.
2. Submit application to the mortgage lender.
3. All applicants credit history will be checked.
4. All required documents sent to the mortgage lender.
5. The mortgage lender will check the documents.
6. The mortgage lender will check the property.
7. Once the mortgage lender is happy with everything, they will issue a mortgage offer.
8. It’s time for the solicitor to complete the legal part of checking the property.
9. The solicitor will then pay off the current mortgage lender and everything is transferred to the new mortgage lender.

Don’t worry we will check and chase everything until the big day.