Remortgaging is very common in the UK mortgage market. People remortgage for many reasons such as simply securing a better deal or maybe capital raising for home improvements, debt consolidation or even to buy that new car you deserve!
When remortgaging it is important to weigh up the costs involved. You may be tied into your current mortgage which would mean a very costly penalty may be charged if you come out of the deal too early. Even if you're not tied in there will probably still be a sealing fee to pay. So you need to know the new mortgage will be good enough to recoup the cost of changing - this isn't as complicated to work out as it sounds and even easier if you let us do it all for you.
Here's some useful information to help. Have a read through and when you're ready give us a call on 01225 719043 or use the 'contact us' page to get in touch and we'll talk you through the finer detail.
WHAT IS THE PROCESS FOR REMORTGAGING?
It's far easier than the buying process because the property is already registered in your name, this means the legal process is much shorter. You would have to make an application to the new lender, similar to the one you did for the original mortgage. The new lender will require the usual proof of your income and identification and they will send a valuer (usually this is free of charge) to look at your property to make sure it is suitable security for the loan.
Once they are satisfied, a mortgage offer will be issued and the solicitor will deal with closing down the existing mortgage and setting up the new one.
WHAT IF I WANT TO BORROW MORE MONEY?
The process is exactly the same as a 'like for like' remortgage - you just increase the requested loan by the amount required. You do have to be a little careful as some lenders will have limits on how much they will lend you for debt consolidation or home improvements.
We can advise you on the most suitable lender and guide you through the process from start to finish, making sure you don't unknowingly start off down a dead end.
If you are capital raising then the surplus funds will be sent to you by cheque or transfer from the solicitor upon completion of the new mortgage.
HOW LONG DOES IT TAKE?
Usually a remortgage can be completed in around 4 weeks, but it does depend on whether or not you are tied into your current deal as you may benefit from waiting until the Early Repayment Charges (ERC's) expire before switching to the new deal.
DO I NEED A SOLICITOR?
Yes, but in most cases the new lender will pay the legal cost's for you as long as you use their nominated solicitor. The lender will only cover 'standard' legal costs, meaning that if anything out of the ordinary is required such as taking a name on or off of the deeds, or postponing a second charge, then additional costs may be incurred that you will be responsible for.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
We always aim to provide a high quality service to our customers. However, if you encounter any problems and we are unable to resolve them you can take your complaint to an independant ombudsman. Our advice is covered under the Financial Ombudsman Service (http://www.financial-ombudsman.org.uk/consumer/complaints.htm). You may be able to submit a claim through the EU Online Dispute Resolution Platform (https://webgate.ec.europa.eu/odr/main/?event=main.home.show if you live outside the United Kingdom or if you prefer not to deal directly with the Financial Ombudsman Service.)
The overall cost for comparison is 8.7% APR for customers who may have their access to credit restricted.
FX Mortgages is an appointed representative of Mortgage Intelligence Ltd which is authorised and regulated by Financial Conduct Authority under number 305330 in respect of mortgage, insurance and consumer credit mediation activities only.