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How to Remortgage

Remortgaging your property can be an effective way to secure a better mortgage rate with lower monthly payments. Deciding to move to a new lender is a big decision, so it’s important to know what to expect before taking the plunge.

This guide will explore the remortgaging process and help you take your first steps toward a better deal.

When can you remortgage?

There are several reasons that you might decide to remortgage your property, but one of the most common reasons that homeowners remortgage is because they have a fixed-term deal that is coming to an end. Allowing a mortgage to expire without arranging a new deal will mean transferring onto a lender’s standard variable rate (SVR), which is typically higher than other products.

Remortgaging can also unlock funds to pay for home improvements or make an important purchase, but it’s important to consider the overall cost of the arrangement and whether you can afford it.

You can remortgage at any time, but there are several things to consider before you decide to commit to a new deal. If you are remortgaging because you have a fixed-term deal that is ending, you’ll need to remember that the remortgaging process can take between six to 12 weeks, so you’ll need to allow plenty of time to research and apply for your new arrangement.

How much will it cost to remortgage?

Whether you are remortgaging to keep your monthly repayments affordable or to increase the amount you are borrowing, it’s important to consider whether it is financially viable for you to commit to a new deal.

Some mortgage agreements are subject to exit fees or early repayment fees if you move to a new lender. These can cost anything from hundreds or thousands of pounds, so be sure that you are aware of any such stipulations in your mortgage before you decide to switch.

Other costs could come from legal fees or charges for a new property valuation, as part of the remortgaging process. Some lenders will cover these costs if you take a new deal with them, so it’s worth exploring all of your options in detail before choosing your next mortgage.

How much do you want to borrow?

Before committing to a mortgage, you’ll need to think about how much you can afford to borrow. Your home may be repossessed if you do not keep up repayments on your mortgage, so you’ll want to make sure that you consider the cost of monthly repayments and how a change in circumstances could impact your finances. 

Our mortgage calculator can help you learn how much you could borrow while our mortgage repayment calculator will give you an insight into how much you will need to pay each month.

How to find the best remortgage deal?

Finding the best deal for your remortgage is a case of shopping around and not simply taking the first offer you see. What might initially look like a good deal could come with expensive legal fees for example, or higher rates than competing products.

The more you compare the market the better. It’s possible to approach lenders and examine their services, as some will even have exclusive offers that are only available to customers who approach them directly. However, you should keep in mind that the opposite is also true – some lenders will have exclusive rates that are only available through a mortgage broker.

Taking the time to explore all of your options is the only way to ensure that you choose the most suitable remortgage to fit your circumstances.

Even if you have approached your lender to discuss their current offers, or explored the market for yourself, it pays to also speak to a mortgage broker to see if they can uncover a better deal.

You’ll need to pay a fee when selecting a product through a mortgage broker, but with a better mortgage deal in place, you can lower your monthly repayments and save money on the overall cost of your remortgage.

Arranging your remortgage

If you’re ready to arrange your remortgage or would like more advice before you proceed, the team at Edward Mellor is waiting to hear from you. 

We pride ourselves on our friendly and proactive approach to securing the best deal on your mortgage. To begin your remortgage process, please don’t hesitate to contact us or give us a call at 0161 443 4830.

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To learn more about the remortgaging process in detail, you can view our guide here

Your home may be repossessed if you do not keep up repayments on your mortgage.

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