Remortgage
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What does remortgaging mean?
Remortgaging means replacing your current mortgage with a new one. This may be done with your existing lender or by switching to a different lender.
Many homeowners consider remortgaging when their current mortgage deal is ending. It may also be used to release equity from a property, which is the difference between your home’s value and the remaining mortgage balance.
Although the process is often simpler than taking out a mortgage for a new purchase, professional advice can help you understand the available options and the potential costs involved.
Why do people remortgage?
- Your current fixed-rate deal may be ending and you want to avoid moving onto a lender’s standard variable rate.
- You may want to review your current mortgage to see whether a different product could suit your circumstances.
- You may want to change the length of your mortgage term.
- You may wish to release equity from your property to support home improvements or other financial plans.
- You may need to adjust the mortgage if ownership of the property changes, such as adding or removing someone from the mortgage.
How does remortgaging work?
Remortgaging involves reviewing your existing mortgage and exploring alternative products that may be available based on your circumstances.
- An adviser will discuss your financial situation and understand your goals.
- You may be asked to provide documents such as proof of income, identification and details of your current mortgage.
- Your adviser can review available mortgage products and explain suitable options.
- The chosen lender will assess your application and may arrange a valuation of the property.
- If the lender approves the application, they will issue a formal mortgage offer and the legal process will begin.
How long does it take to remortgage?
Remortgaging is often quicker than arranging a mortgage for a property purchase. Once a full application has been submitted, the process may take several weeks depending on the lender and individual circumstances.
The timeline may vary depending on factors such as property valuation, lender processing times and the legal work involved.
Can you remortgage with the same lender?
In some cases, homeowners choose to stay with their current lender and switch to a different mortgage product. This is sometimes referred to as a product transfer.
However, it can also be useful to review mortgage products from other lenders to understand the options available in the wider market.
An adviser can help compare potential options and explain the advantages and considerations involved when switching lenders or staying with the current one.
When can you remortgage?
It is possible to remortgage at various points during your mortgage term, although timing may affect costs and eligibility.
Some mortgage products include early repayment charges if the loan is changed before the end of a fixed period. For this reason, many homeowners begin reviewing their options several months before their current deal expires.
Reviewing options early can allow time to explore available products and understand any associated fees.
Do I need a mortgage adviser to remortgage?
A mortgage adviser can help review your current mortgage and explain potential alternatives that may be available based on your financial circumstances.
During the process, an adviser may ask questions such as:- Your future plans for the property
- Your employment and income details
- Your existing financial commitments
- Your household or family circumstances
This information helps assess which mortgage options may be suitable for your situation.
How a remortgage adviser may support you
- Discussing your financial circumstances and goals
- Reviewing available mortgage products from a range of lenders
- Helping you understand borrowing options and potential costs
- Explaining the application process and required documentation
- Supporting you during the mortgage application process
- Liaising with lenders and other parties where required
Why choose Godfrey Financial Solutions for remortgage advice?
Remortgaging can involve important financial decisions. Our adviser aims to provide clear information and guidance so you can understand the options available to you.
- Qualified adviser: Our adviser holds recognised industry qualifications including CeMAP and DipFA.
- Regulated advice: Godfrey Financial Solutions Ltd is an Appointed Representative of Rosemount Financial Solutions (IFA) Ltd, authorised and regulated by the Financial Conduct Authority.
- Professional standards: We maintain professional standards through memberships including the Chartered Insurance Institute (CII) and the Wallbrook Institute London.
- Support throughout the process: We aim to help make the mortgage process easier to understand from the initial discussion through to completion.
Here is a selection of the most common questions our remortgage advisers are asked.
How to remortgage and release equity?
The equity in your home is the amount that you own outright – the deposit you paid plus all your contributions in the meantime. If your home is worth £350,000 and you have £200,000 left to pay, you have £150,000 worth of equity in your home. When you remortgage, you may be able to take some of this money as part of your new deal. As you’re borrowing more money, it will likely increase your monthly payments.
Can you remortgage to buy another property?
Yes, you could put some of the equity in your property towards a deposit for another purchase. You may need a buy-to-let mortgage if you’re investing in property or you might be looking for a second home for business or lifestyle reasons.
Do I need a solicitor to remortgage?
You’ll need to instruct a conveyancing solicitor if you’re remortgaging and changing lenders or if you’re adding someone to the mortgage (or removing someone). In these instances, the same paperwork and legal hurdles are in place as when you buy a home. If you’re sticking with your current lender, it’s classed as a product transfer and there’s much less paperwork. As such, you wouldn’t need a solicitor.
How much does it cost to remortgage?
Do you need a deposit to remortgage?
In just about all instances, you wouldn’t need to pay any kind of deposit when you remortgage. Your loan-to-value ratio will be calculated using your home’s value and the remaining amount on your mortgage – or the amount you’re borrowing if you plan to release equity.
Is it easy to remortgage?
Remortgaging is often an easier process than taking out a mortgage on a new home, and the timescale for completion is generally more predictable. Checking for deals well in advance of your fixed term ending, being clear about your plans to withdraw equity and organising financial documents can all help smooth the process further.
Should I get my house revalued before remortgaging?
Your home may be repossessed if you do not keep up repayments on your mortgage.