A good point to remember is that re-mortgaging your home is easier than when you first take out a mortgage because the property is already registered in your name. It is even easier if you decide to take out a different deal with the same lender.
The whole process can take time, be complex and costly. Therefore, much thought and advice is needed before you decide to proceed to re-mortgage.In any case, it is important to know the stages that need to take place in a typical re-mortgage.
Firstly, you need to be confident that you have a good reason to re-mortgage and this is what you are set on doing. You have to look at your own individual circumstances and compare what is on the market to see if you can get a better deal.
This is where Finbud, who has whole of market access can help guide and advise you. But there are questions that you need to ask yourself, some of which include: Are you looking to cut your monthly repayments? Are you looking to switch from a Standard Variable Rate (SVR) to a fixed or capped rate? Do you want to release more equity in your property? Do you want to switch to a flexible mortgage?
Consider Affordability
You need to realistically look at what you can afford to pay. Gather all of your current mortgage documentation and see how much you are paying in capital and interest and see how much further you can go-are you looking to increase or decrease payments? Can you afford to have your monthly payments increased? You may be looking for a fixed rate mortgage which will offer you more certainty about how much you will pay and so you do not have to worry about rising interest rates.
Also, consider the other costs involved when you re-mortgage. For a detailed summary of these costs see our How much does it cost to re-mortgage? guide. In summary, there may be early repayment charges, arrangement fees, exit fees, valuation fees and legal fees amongst other fees.
Talk to your current mortgage lender
Check what your current lender has on offer-they may surprise you with a better deal than the one you have in order to keep you as a loyal customer. Alternatively, if you find a better deal, you can put the terms of your new deal to them and see if they can at least match it if not better it. It is always advisable to see if you can obtain a deal from your own lender as this will help to cut costs…but only if the deal, as a whole, is in your best interests.
Making and submitting the Mortgage Application
We will help you to do all of the mortgage paperwork and manage the application process from start to finish. It is important to note that the lender will scrutinise your application and will carry out credit checks and request additional documentary evidence such as proof of earnings. The lender may also wish to obtain a new valuation of the property. There will be legal work involved.
It is critical that you have a Solicitor or licensed conveyancer to deal with the legal side of the transaction i.e. to handle all of the relevant paperwork, transfer funds once re-mortgaging is complete and to follow through any outstanding items.
Once the lender is satisfied, they will issue a final mortgage offer, including a key facts Illustration setting out all of the terms and conditions of the new mortgage.
