Table of Contents
What is remortgaging, you ask?
A remortgage is when you take out a new loan on a property you own.
Remortgaging can be done for many reasons, including to lower monthly payments, get a better deal, or to pay off their mortgage faster.
You may have heard the term product switching when you read about remortgaging. It is important not to confuse the two terms. While remortgaging refers to taking out a mortgage with a new provider, product switching refers to when your current mortgage contract expires and you decide to switch to a different provider.
Learn more about remortgaging
Why would you need a remortgage?
Remortgaging your home can be done for many reasons.
Remortgaging homeowners can be used to increase their mortgage term and reduce monthly payments. The mortgage term can be extended, but this could lead to higher long-term costs. Some people choose to remortgage in order to free up equity for home-related expenses such as home improvements, home renovating.
Can I remortgage my home?
If your financial situation hasn’t changed significantly and you don’t borrow any additional money, you may be eligible to remortgage the property. You will need to prove that you have the financial ability to repay any additional loans if you want to borrow more money on your mortgage. You may be charged a fee by your lender to make the changes. Ask your current provider if you will have to pay any fees for remortgaging. You should usually be able to refinance if your lender has placed you on their SVR (Standard Vary Rate). There is both pros and cons in remortgaging.
What are the best times to remortgage your home?
You should consider looking into your options at least three to six months prior to your current deal expires. If you are already on the SVR of your lender, you should start looking immediately.
If you’re currently paying a preferential rate such as a fixed rate or tracker rate it is possible that there will be an early repayment fee if you leave the product before the rate ends.
Is it possible to remortgage?
Remortgaging might not be the right choice for you if any of these apply to you.
- You are tied to an existing deal
- Your financial situation has deteriorated
- Your home’s value has dropped.
Our advisers are available to answer any questions or concerns. You will find a link at the bottom of the page.
How to remortgage your house?
Remortgaging is easy.
You will only need:
- Talk to your lender, or a mortgage advisor like the experts at Loan Corp, to determine if remortgaging might be right for you.
- Your mortgage advisor will help you find the best remortgage product for your needs and complete all paperwork if you decide that remortgaging is right for you.
What is the average time it takes to remortgage?
Although there is no time limit, most remortgaging will take between 4 and 8 weeks from the day you apply. For more information on the time it will take to remortgage your home, get in touch with Loan Corp.
Does my house need to be valued before I can remortgage it?
You will need to have a new valuation done by your lender if you change lenders or borrow more money from your existing lender.
A surveyor will usually visit your house to inspect it. However, some lenders will conduct a ‘desktop’ or ‘drive-by’ valuation without actually visiting the property.
How can I get my house appraised for a remortgage or other purposes?
Your new lender will take care of everything. The surveyor will reach out to you to set up a time and date that works for you. After the valuation, a full report will be sent.
Is it possible to remortgage with a single lender?
No, you can’t. You can however, switch to the same lender and get a new mortgage deal. Your existing lender may be able to provide additional funds.
Loan Corp can help you decide if it’s better to stay with your current lender or switch by looking at the mortgage market.
What is the maximum number of times I can remortgage my home?
Although there is no best time to review your mortgage, it is a good idea to do so if you are concerned about your mortgage or think you might get a better deal. Loan Corp experts will gladly assist you in this process so that you can determine if it is worth your time.
What are the requirements to remortgage my home if I want an extension built?
You don’t need to remortgage to finance your extension. For a further advance, you can contact your existing lender. A separate mortgage account can be opened for a further advance.