Remortgage
- Award-winning brokers who will navigate the complex mortgage marketplace for you
- Simple and clear advice – no jargon
- We have access to a comprehensive range of mortgage lenders – including very specialist lenders for your individual requirements
Get in touch for a free, no-obligation chat about how we might be able to help you.
Get In Touch
Home » Remortgage
Remortgaging involves replacing your existing mortgage with a new one, either with your current lender or a different provider, while staying in the same property. This process can offer several benefits, including:
Securing a Better Interest Rate: If market rates have fallen since you took out your original mortgage, remortgaging can reduce your monthly payments. For instance, major lenders like Halifax and Leeds Building Society have recently reduced their rates, making it an opportune time to consider remortgaging.
Accessing Additional Funds: Remortgaging allows you to release equity from your home, providing funds for home improvements or other significant expenses.
Avoiding Standard Variable Rates (SVR): When your current mortgage deal ends, you may be moved to your lender’s SVR, which is often higher. Remortgaging before this happens can help maintain lower payments.
Key Considerations When Remortgaging:
Timing: It’s advisable to start the remortgaging process three to six months before your current deal expires. This ensures you have ample time to secure a favourable rate and avoid reverting to the SVR.
Costs Involved: Be aware of potential fees, including early repayment charges on your existing mortgage, arrangement fees for the new mortgage, valuation fees, and legal costs. Some lenders may offer incentives, such as free valuations or legal work, to attract remortgage customers.
Loan-to-Value (LTV) Ratio: Your property’s current value relative to your outstanding mortgage (LTV) significantly influences the deals available to you. A lower LTV often qualifies for more competitive rates.
Credit Score: Lenders will assess your creditworthiness. Maintaining a good credit score enhances your chances of securing favourable terms.
Steps to Remortgage:
Assess Your Current Mortgage: Determine any early repayment charges and the remaining balance.
Evaluate Your Financial Situation: Consider your income, outgoings, and credit score.
Research the Market: Compare deals from various lenders to find one that suits your needs.
Apply for the New Mortgage: Submit an application, providing necessary documentation such as proof of income and identification.
Legal Work: A solicitor or conveyancer will handle the legal aspects of transferring your mortgage.
Completion: Once approved, your new lender will pay off your existing mortgage, and you’ll start making payments to them.
We at Smiths Financial can simplify this process and can provide personalised advice to help you find the most suitable deal based on your circumstances.