What is a remortgage? Your mortgage deal is ending but what are your options?
Your fixed rate mortgage deal is coming to an end. What are your options?
> Switch to another fixed rate mortgage deal with your current bank.
> Compare mortgage deals from other banks and switch to one of their remortgage deals.
Many people still see the word remortgage as a negative term or only something you do if you want to borrow more money on your mortgage. This is not the case and a remortgage in simple terms is just swapping your mortgage to another provider as is done with things like car or home insurance. You don’t have to be borrowing more and most lenders will pay for or offer you cashback to cover any legal costs involved with switching over.
Check out what a small change in interest rate could save you every month! or if you already know you need a FREE MORTGAGE REVIEW then just get in touch!
This is more commonly known as a product transfer and just means that when your current mortgage deal is ending you would swap that to another mortgage deal with your current bank. This normally involves no extra borrowing and with most lenders no credit checks or income proof is needed. This could be the best option in the following scenarios:
> Change of income, credit issues or your property has gone down in value since you got your original mortgage deal – which may mean you are not eligible to borrow the same amount with other lenders or be able to secure as competitive interest rates. However as most lenders don’t need to do credit checks or see income proof to complete a product transfer this could be the right option.
> Your current mortgage provider is offering the cheapest overall deal. Obviously you’re not going to switch if your current lender is the cheapest, unless they’ve been really rubbish!
> Its time sensitive. As your are just switching your deal this is usually the quickest route as no valuations are required, no legal work and no full mortgage application process to go through. This could prevent you from ending up on your lenders standard variable rate and costing you more if you’ve left it a little late.
There are some other times when a product transfer could be the right option but these tend to be the most common.
Most lenders will offer you the option to borrow more with them which is normally known as a further advance but this will require new affordability assessments and credit checks to ensure they can offer you the lending.
Remortgaging to a new lender is simply paying off your current mortgage and taking out a new mortgage with a different lender.
Lots of lenders save their most competitive deals for new customers meaning switching to a new provider could mean you get the cheapest mortgage deal instead of staying with your current lender. Whether you are remortgaging for a better deal, remortgaging to release equity or looking for a debt consolidation remortgage, searching the market could mean you get the cheapest overall mortgage deal.
Most lenders will also offer free legal work or provide you with cashback to cover these costs so switching your mortgage deal could cost you nothing and save you money every month on your mortgage payments.
There are plenty of reasons to remortgage and the most common are:
> Ensure you get the cheapest mortgage deal from across the market.
> Your property has increased in value since your original mortgage. a remortgage usually involves a new valuation so this will take into account any improvements made to the property and potentially mean you are eligible for lower rate products.
> You want to release some equity and your current lender wont allow it.
> You want to add or remove someone from the mortgage and property. This is known as a transfer of equity and can usually be tied in with your remortgage.
Remortgaging however can take longer than a product transfer and you may not be eligible for every mortgage deal out there. So if your income or credit history has changed since your original mortgage or you need to sort in a snap a product transfer might be the better option.
Billions of pounds of mortgage deals are coming to an end!
Interest rates are at an all time low!
House prices have increased significantly meaning more equity in your property!
Lenders are competing for new customers giving extremely competitive deals!
Borrow extra for home improvements or debt consolidation
You could save £1000’s by searching the market!
The remortgage process is pretty much the same as buying a house. Once you know how much you want to borrow and what type of fixed rate mortgage you want you would submit a mortgage application to a lender. They would require you to prove your income and may require bank statements or quotes if you are borrowing more for home improvements. They would instruct a surveyor to value your property, approve your documents and offer you the mortgage. Your solicitor or the one appointed by the new bank would carry out the legal work and that’s it, all done. Sounds easy right?
Think again! As with any mortgage application there are a lot of things that can go wrong.
First, you need to find someone who will lend you the amount you want and for the reason you want. Different lenders have different limits on the amounts you can borrow based on your income or the reason for any extra borrowing. For example some lenders wont allow extra borrowing for debt consolidation, others will but only to a certain limit against the value of your property.
Secondly, you’ve found a lender who will lend you enough. But how do you know they are offering the best deal for your circumstances, you’d have to check every lender out there to see if they will lend you amount you want and what deal they will offer you.
Third, you’ll probably need to book a long boring appointment with that bank to do your mortgage application and prove your information.
Then you’ll need to liase with the lender to arrange a valuation, chase up the progress and provide any extra information
Finally you’ll need to use either use the lenders solicitor or find your own. Free legal work provided by the banks tends to be pretty slow and finding a really good solicitor on your own is a minefield of its own.
So it can be done and if this sounds like the right option for you then good luck.
Speak to an expert mortgage broker to get advice. Brokers have the knowledge to make the process straightforward and often get exclusive deals with some lenders only offering products through brokers.
Speaking to a mortgage broker is the quickest and simplest way to get the right mortgage deal. A mortgage adviser will assess and verify your circumstances, income, outgoings and credit history and run affordability and eligibilty checks from across the market to check you can borrow the amount you need for your remortgage and ensure that you can actually get the required mortgage deal. They will check to ensure that it is worth switching your mortgage from your current lender.
If its not worth switching lenders Blue Crocodile will happily swap your deal over for you with NO FEE!
If it is worth switching your deal we will advise you on this and find the cheapest mortgage deal for your circumstances.
Not only that but we will do the mortgage application, liase with the lender, arrange the valuation and we have hand picked solicitors to ensure that the legal work can can be carried out in a snap at no extra cost to you!
Convinced you need a broker, then get in touch now. Get in touch