If you already have a mortgage on your home and are looking to get a better interest rate on it or want to consolidate your debts into one payment, remortgaging may be a good financial move for you.
It is a much less involved process than buying a home, so it is often easier than you think. A good place to start is to have a think about what it is that you want to achieve by remortgaging. For example, if your initial deal has ended or about to end, then remortgaging can help you to secure the best new deal and help to save you money. You do need to remember though, that other costs need to be considered, such as set up fees (an arrangement fee, valuation fee or legal fees) However, you can often get lenders who offer deals with low or even no up-front costs.
How long will it take?
As it is less involved than buying a new home, it is typically a quicker process but there are still a few steps to take and so you will need to plan ahead.
Step 1 – Shopping around
You will need to do your research and allow yourself plenty of time for this. Most lenders will allow you to apply for and then secure a rate for 6 months before you complete on it, meaning you can move straight over to your new deal as soon as your old one finishes. There are lots of products on the market and they can often disappear as quickly as they appear, so using a broker like myself, will help to speed up this search for you.
Step 2 – Decide on the deal for you
There are a few things to consider here and you need to think about whether you are happy with a variable rate, which goes up and down when interest rates change or if you would rather guarantee your monthly payments for a given period of time with a fixed mortgage. Consider any other fees involved along with the interest rate to make sure you are achieving your financial goals for remortgaging in the first place.
Step 3 – Apply
Once decided on the above, you will need to submit your application and will be required to provide your proof of income, proof of identification and details on your financial outgoings. In order to be prepared and save time, get together at least 3 months of payslips or 3 years accounts if self-employed, your passport or driving licence and bank statements for the last 3 months. Using someone like myself can save you time and make sure you get it right as I will help you through the whole process and deal with the lender on your behalf.
Step 4 – The assessment
In order to agree your mortgage, the lender will need to assess your income, financial commitments and outgoings to assess your affordability. As part of this they will look at your credit rating and do a valuation of your property to make sure it is worth what you have said.
Step 5 – The offer and completion
Once all of the above checks are completed and they are happy with the outcome, the lender will provide you with a mortgage offer. Your chosen conveyancer will complete all of the necessary legal work and then take the process through to completion, arranging the funds to be transferred to your previous lender.
If you are borrowing additional money, in order to consolidate other debts or to carry out some home improvements, this will be paid to you on completion.
We can help
Regardless of your reason for remortgaging, it doesn’t need to be stressful when you use an experienced mortgage broker.
At KB Mortgage Services, we are well-equipped to help. We have access to the whole of the market, meaning that we can evaluate which lender and type of mortgage is best suited to your situation, to save you money.
But we’ll even advise you when remortgaging isn’t the best option for you. If you want to reduce your monthly payments, for example, we’ll figure out if the penalty fees associated with switching your lender early will be outweighed by the savings in the long run. If they will be, we’ll tell you so!
But if you do decide to go ahead, we’ll complete the paperwork, guide you through the process and keep you updated.
And we’ll even keep in touch with you after you’ve completed, to ensure that the mortgage and protection plans you have in place always meet your changing needs.
So, if your mortgage is no longer suiting your lifestyle, or you want to see if you could save some money then get in touch.
Please note: You may have to pay an early repayment charge to your existing lender if you remortgage. Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
Approval no: Sol11349