A popular option amongst customers, remortgaging is, put simply, paying off an existing mortgage on a property by acquiring a new one. Remortgaging a property can improve buyer’s situations financially, either raising initial capital in a swift manner allowing one to consolidate shorter term debts, paying off a mortgage earlier than anticipated and thus reaping the rewards or reducing the size of repayments on an existing mortgage.
We can help get you the right remortgage deal
Remortgage with Just Mortgage Brokers
At Just Mortgage Brokers, we have considerable experience in dealing with customers looking to remortgage properties for a wide variety of reasons. This experience places us in the ideal position to secure the right remortgaging options based on your specific needs. We have access to over 12,000 mortgages from over 90 lenders, so can locate exclusive deals that are otherwise unavailable on the high street or online.
Our expert advisers will provide you with impartial advice on whether remortgaging is the best finance option for you based on your specific requirements and circumstances.
Regardless of your position as a property owner and your goals in remortgaging your property, you will feel assured in the knowledge that Just Mortgage Brokers will be able to manage your remortgage with confidence, providing you with the most suitable deal. Contact us today to discuss how we can help.
There are a number of benefits in remortgaging. You can remortgage your property in order to secure a better rate than your current deal which in turn can save you money each month. When remortgaging you can also benefit from reducing your overall term which can sometimes save you thousands of pounds over the course of your mortgage. If there is enough equity in your property, you can also remortgage your property to release some of this and use the surplus money for home improvements or consolidating debts. There may be other personal reasons to release some of the equity locked up in your property. Releasing the equity by remortgaging can cost you less per month, then taking out shorter term unsecured loans. This can be very useful when trying to budget on a day to day basis.
Strictly speaking, you can remortgage from one lender to another at any time. However, there can be factors which, while technically not preventing you from remortgaging, can make it financially unwise to do so. One of the main barriers to remortgaging can be the existence of early repayment charges on your existing mortgage deal.
Many mortgage products offered in the past few years have effectively had “tie-in” periods. Usually, the tie-in is just for the duration of the mortgage deal, whether that’s two, three or five years. Other products may have a tie-in period that extends beyond the actual product term, although this is rarer. In either case, repaying your mortgage within the defined period will result in an early repayment charge being applied.
Early repayment charges can amount to thousands of pounds – often they are calculated as a percentage of the mortgage balance. When considering a remortgage, early repayment charges and other fees must be taken into account. The fundamental question is: will the amount you will save in interest by transferring to a new mortgage with a different lender outweigh the amount you will have to pay in early repayment charges and other fees associated with closing your existing mortgage and taking out a new one?
If there is an ideal time to remortgage, it is when your introductory deal comes to an end. Some lenders may offer to transfer you onto a new deal to try to keep your business, but if not then there is a danger that your mortgage will revert to the lender’s Standard Variable Rate (SVR). SVRs tend to be quite a bit higher than other products on the mortgage market, so you could experience a sharp hike in both interest rate and your monthly payments.
Many of the stages of the remortgaging process are similar to that of getting a mortgage to buy a house, although in other ways the process is simplified. You need to get your property valued, as well as engage a solicitor who will handle the transfer of deeds from one lender to another. However, it’s not unusual for lenders to offer to arrange these as part of their service, often as part of a “fee-free” remortgage offer.
On submitting your mortgage application and supporting documentation to the new lender, it will be subject to the same checks as any other residential mortgage – including an assessment of your ability to afford the loan and a check on your credit record with an external credit reference agency. After you receive your mortgage offer and all legalities are confirmed to be in order, the lender will repay your existing mortgage and your new mortgage will commence. The time the remortgage process takes can vary from lender to lender and also depend on whether any complications arise, but on average it tends to take from four to eight weeks.
Remortgaging can cost very little from the outset as most lenders compete against each other to win your business. It is quite common for lenders to offer Free Mortgage Valuations and a Free Legal Package to carry out the conveyancing. That said some lenders may not offer any benefit and both the cost of the Mortgage Valuation and Legal Costs will have to be paid by you. This is on top of any mortgage lenders arrangement fees and Mortgage Broker fees that may become payable. Other costs to look out for are any early repayment charges to your current lender and any nominal fees that may be charged for closing down your current mortgage. When our Mortgage Advisers assess your circumstances, they will take into account all of the fees mentioned ensuring that remortgaging is the best option for you.
Getting yourself the most favourable remortgage deal for your circumstances could end up saving you thousands of pounds over the duration of the loan, so it’s understandable you’ll want to make sure the deal you get will work well for you in the long term. Getting the best deal can mean different things according to your situation, but a few general basic tips to follow to help you get access to the most advantageous deals would be:
- Have a thorough knowledge of the market
It’s worth taking time to research what the various mainstream lenders are able to offer for a remortgage, as well as checking what your current lender might be able to provide. This way, you’ll get a good idea of a benchmark figure for the rates available, as well as other factors like the introductory period and associated fees. Don’t forget to factor in possible early repayment costs on your current mortgage, and remember that there are specialist lenders who only deal through intermediaries and do not post their rates online.
- Check your credit score
One sure way to make sure there’ll be no issues when trying to access the best deals is to take a look at your own credit rating before you start applying. This way, you can spot any bad credit issues on your records, and take all possible measures to remedy the situation, put right any incorrect entries and try to repair your credit rating as much as possible ahead of any checks by lenders.
- Provide a large deposit
Having a larger than average deposit, or a sizable amount of equity already in your property, will always help you to access the most favourable deals for a remortgage, whichever lender you go to. The added security to the lender will mean you are less of a perceived risk.
A word of warning: if you’re searching through comparison sites with ‘best buy’ lists that make it easy to click through to a lender and get a remortgage offer, be careful of making multiple applications.
In the end, the ‘best’ mortgage deal for you will be the right one to suit your individual circumstances and one that most closely matches your financial aims at the least cost over the duration of the loan. This might not necessarily be the remortgage product with the lowest headline interest rate.
Here at Just Mortgage Brokers we receive many enquiries asking if a remortgage can be arranged up to 95% of a residential property value. Whilst it’s true that in the market as a whole the maximum most lenders will permit a remortgage to is 85% of the value, there are some that will lend up to 90% and indeed, as at the time of writing, some that will consider up to 95% loan to value. Certain criteria will still be applicable such as the lenders assessment of the borrower’s affordability and also if the remortgage includes any element of capital raising eg. if any is being used for debt consolidation this may reduce the overall loan to value a lender will permit. Different limits will also apply if the property is a buy to let.
You can remortgage a shared ownership property in exactly the same way as a conventional mortgage. The only difference being that shared ownership mortgages are only available via selected lenders.
Our expert Mortgage Advisers can help you find the right shared ownership remortgage deal based on your individual circumstance.
Remortgaging a Buy to Let property works in the same way as when you purchase a property using a Buy to Let Mortgage. Lenders will assess the current monthly rent that can be achieved on the open market, along with your personal circumstance, property value and available equity in the property.
Our Mortgage advisers can assess all of this for you and give a very good indication of if you can either save on your monthly repayments or if you can release some of the equity locked into the property.
Care must be taken when looking for lenders to remortgage to, as not all lenders have products available for the help to buy scheme. It is also important to note, whether you are on the original Help to Buy 1 or the subsequent Help to Buy 2 government scheme. Whichever scheme you are on it is certainly possible remortgage if not always straight forward.
Our expert Mortgage Advisers understand the Help to Buy scheme and the details surrounding them and can help guide you in remortgaging to a better deal.
An Interest Only mortgage can be remortgaged onto a new deal. However, you must be able to adhere to some strict criteria as these types of mortgages are deemed as higher risk lending by the regulator. Typically, lenders will consider an Interest Only remortgage for those who have good levels of income, loan to values of 75% or less, a significant amount of equity, as well as minimum property values above certain parameters. To check if you qualify for an Interest Only remortgage it is advisable that you get in touch with one of our Interest Only specialist Mortgage Advisers who will be able guide you further.
One of the main reasons for remortgaging is to make sure you are on the best interest rate possible, and this is especially true of tracker rate mortgages. Tracker rates are typically a little higher than fixed rates, but then you are able to take advantage of any fluctuations in the prevailing rate that the product is pegged against – be that the Bank of England base rate or the LIBOR rate – with a drop in the rate potentially representing a saving of hundreds, if not thousands of pounds over the life of the mortgage. Obviously, the reverse is also true if the prevailing rate increases.
In the highly competitive and constantly shifting mortgages market, the most attractive deals can appear and disappear overnight, with no notice. It takes a thorough knowledge of the mortgage industry, strong relationships with lenders (both mainstream and specialist) and a finger on the pulse when it comes to the direction of trends to know who to approach and what the best deals will be.
The best remortgage tracker rates are not always available on the open market as some lenders will only offer their best and most exclusive remortgage rates via mortgage brokers like us. Specialist lenders all have varying criteria when it comes to accepting applications, and we at Just Mortgage Brokers are familiar with them all.
Get in touch with an expert adviser today to see if you are eligible for some of the best remortgage tracker rates available. With access to 12,000 mortgage products across 90+ lenders, we can obtain many deals that you won’t see on the high street, often on an exclusive basis. Whatever your needs, we are best-placed to move fast to efficiently secure the best deal for you.