If you’re a homeowner, remortgaging might be the next step for you.  
Let’s dive into what exactly remortgaging is and why it might be beneficial. 
 
What is remortgaging? 
Remortgaging is the process of moving your mortgage on your existing property from one lender to another, whilst staying in that same property. 
 
Reasons to consider remortgaging 
• If you are coming to the end of your existing rate 
• You are ready to look for a better deal than your current lender can offer 
• You are planning to borrow more money against your property 
• You may want a more flexible mortgage deal with the option to make overpayments 
• The value of your home may have increased changing the LTV (loan to value ratio), meaning you may have access to a wider range of products 
 
What is a product transfer? 
A product transfer is when you move your current mortgage deal to a new one with the same lender, usually at the end of a fixed term. As your existing lender has all your information, this is usually a straightforward process. There are no extra fees or legal work involved as you are simply moved onto the new deal on the fixed-term start date. It’s certainly worth taking advice from a mortgage adviser as a product transfer might not be the most competitive or suitable option for you at this point. 
 
What is the remortgaging process? 
Your current lender or mortgage adviser will write to you as the end of your current mortgage product comes to and end. At this point, you may have a discussion with your mortgage adviser about your financial circumstances and plans for the future. Your adviser will provide a solution best suited to your individual requirements and if you are moving to a new lender, a solicitor will be instructed. Documents will then be collated for the eligibility and affordability checks by the lender and if successful, a mortgage in principal (MIP) will be issued. The lender will then instruct a valuation of your property and once this is successfully complete, the mortgage application may commence. If the lender approves your mortgage application, a mortgage offer will be produced and the solicitor will draw down the mortgage funds and pay off the old mortgage. The new mortgage is registered at Land Registry and the process is finished. 
 
When can I remortgage? 
You can remortgage your property at any time, however be aware of ERPC (Early Repayment Charges) and possible exit fees if you are still within your fixed rate. For this reason, many people choose to consider remortgaging towards the end of their fixed rate. If you choose not to remortgage at the end of your fixed rate, you will most likely be moved onto your lender’s standard variable rate (SVR) and could end up with higher monthly payments. 
 
How long will a remortgage take? 
Remortgaging your home typically takes around 4 to 8 weeks after applying. The amount of time needed will depend on your individual circumstances and remortgage needs. Working with an experienced mortgage adviser may help to speed this process up by ensuring all the relevant, accurate documentation is collated and submitted correctly in the first instance. 
 
What are the costs involved in remortgaging? 
• booking or completion fees charged by a new lender 
• conveyancing costs 
• property valuation costs 
• early repayment charges (ERC) or exit fees charged by your current lender 
• possible mortgage adviser fees 
 
Will I need a solicitor to remortgage? 
Yes you will need a solicitor to take care of the legal aspects of your remortgage. Your conveyancers need to verify your identity and your ownership of the property. They also need to register the new mortgage provider with the Land Registry and arrange the release of the funds. 
 
Points to consider 
1. What do you want from your new mortgage? 
2. What will it cost to leave your current mortgage? 
3. Has your employment status changed? 
4. Which mortgage products are available? 
5. How is your credit score? 
6. How much can you borrow? 
 
 
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