Remortgaging is when you switch your current mortgage to a new deal with your current lender or a different lender often to gain a better interest rate. Doing this at the end of your current mortgage deal (fixed rate) can save you thousands of pounds in interest when compared to staying on your current lenders standard variable interest rate. Switching to a new lender normally gives you the biggest saving.You can even remortgage your property to raise funds for home improvements or debt consolidation and if you do not have a mortgage do not shy away from speaking to us about raising funds against it.
Contact Us to see how much we can help you.
Why Should I Remortgage?
Obtaining a better interest rate before the current mortgage deal ends is normally the reason a remortgage is done. However there is other reasons people remortgage which are displayed below;You can remortgage to:
- Get a new fixed rate before moving onto the high interest standard variable rate
- Release equity (raise money) to provide funds to ay for home improvements or to consolidate debts or buy a second property
- Take advantage of lower interest rates to get a better deal
- Repay an existing interest-only mortgage and switch to a repayment mortgage
- Take advantage of an increased house value and obtain a better deal
When Should I Remortgage?
The best time to remortgage is when you have no early repayment charges on your current mortgage deal which is normally when you’re at the end of your current deal. So we advice to start your remortgage process 3-6 months before your current deal ends so that you are ready to switch to the new deal and new lender and avoid paying any payments on the higher interest rate with your current lender. If your current deal has ended then that’s not to worry as we can still help you.If you do not currently have a mortgage on your property and you are looking to raise funds for home improvements then check out our blog on Can I Remortgage If I Own My Property Outright?
How Do I Remortgage?
If the best option for you is to remain with your current lender on a new deal then this is a fairly straight forward process known as a product switch or product transfer (to find out how this works and if its for you check out our blog here). However if a better deal is obtainable with a different lender or you want to raise funds, the process is the same as taking out a new mortgage, an application process is followed. Credit checks and affordability assessments are done and your current mortgage is repaid when the new lender has accepted your application. Our turnkey mortgage process makes this very smooth and stress-free. If you are not sure on the status of your credit file and you may be worried about this then please contact us or check out our blog on How Do I Check My Credit Score? for further informationShould I Use a Mortgage Broker To Remortgage?
There are many benefits to using a mortgage broker like ourselves to remortgage. We have access to exclusive mortgage deals which cannot be obtained by going to the lender direct. We also handle the mortgage application for you, saving you time and money.How Much Does It Cost to Remortgage?
Usually there are possible fees involved when remortgaging but these fees are usually worth it when saving thousands of pounds per year with your new mortgage deal. Your Mortgage adviser at The Mortgage Bubble will explain all costs involved and also go through and show you how much this will save you when compared to either staying on your current deal or doing a product switch with your current lender.A list below is all the fees involved with remortgaging (you may not have to pay all of these as your new lender will cover some of them for you)
- Valuation Fee
- Solicitors Costs
- Mortgage Arrangement Fee/ Product-Fee
- Mortgage Broker Fee
Remortgaging is a vital process of owning your own home which has a mortgage secured against it and getting advice on the right mortgage for you is just as important and that’s where we come in. Contact Us to speak to one of our specialist remortgage advisers or visit our remortgage page for further information.
