If you’re reading this, chances are you’ve been thinking about remortgaging or you’re just looking for a bit more clarity on how it works. Don’t worry; I’ve got you covered. I’m here to walk you through the whole process, from why you should consider remortgaging to how much it’s likely to cost. Let’s dive in!
What Exactly is Remortgaging?
So, what does it mean to remortgage your home? Well, remortgaging is simply the process of switching your current mortgage deal to a new one. You don’t need to sell your house or move anywhere – it’s just a way of changing your mortgage terms to get a better deal.
You might be thinking, “Why would I do that?” Well, there are actually loads of reasons why remortgaging could work in your favour.
Why Should I Consider Remortgaging My Property?
Alright, let’s get into the reasons why remortgaging your property might be a good idea for you. Honestly, the most common reason is to save some cash – but it’s not the only reason. Here are a few more reasons people come to us at Mortgage Bridge for help with remortgaging:
Can Remortgaging Save Me Money on My Monthly Payments?
One of the biggest reasons people remortgage is to save money. If you’re at the end of your fixed-rate or discounted mortgage deal, you could be moved onto a standard variable rate (SVR). That could mean a much higher monthly payment. By remortgaging your home, you can secure a much better deal and keep your payments in check. I’ve seen people save hundreds, sometimes even more, every single month!
Can I Borrow More When I Remortgage?
Have you noticed your home’s value going up, or have you paid off a chunk of your mortgage? Remortgaging could allow you to borrow more—whether you want to do some home renovations, consolidate debt, or fund a big life event. It’s all about accessing the extra equity in your home.
If you’re interested in learning more about how to access home equity through remortgaging or exploring refinancing options, feel free to get in touch with us at Mortgage Bridge!
Should I Switch to a Fixed Rate for More Stability?
If you’re worried about interest rates going up, remortgaging to a fixed-rate mortgage could bring some much-needed peace of mind. That way, you know exactly what your payments are going to be for a set period, no surprises. Especially with the way things can change economically, it’s a great way to avoid the stress of unpredictable rate hikes.
Can I Pay Off My Mortgage Faster by Remortgaging?
Another reason people consider remortgaging is to shorten the length of their mortgage. If your finances have improved and you want to pay off your mortgage faster, remortgaging to a deal with a shorter term can save you money on interest in the long run.
Can I Release Equity from My Home?
Sometimes life calls for extra cash, and remortgaging to release equity in your home can help you do just that. Whether it’s for home improvements, a big purchase, or investing in something new, releasing some of that equity could be the way forward.
How Do I Get More Flexibility with My Mortgage?
Things change, and life doesn’t always go as planned. That’s why you might want more flexibility in your mortgage. Remortgaging to a more flexible deal could give you options like taking payment holidays or paying off your mortgage early without penalties.
When Should I Start Thinking About Remortgaging?
So, you’re thinking about remortgaging – now what? When should you start? Ideally, you should start looking into it around six months before your current deal ends. That gives you plenty of time to shop around for the best rates and options.
Plus, most lenders will notify you when your deal is about to end and when you’ll be moved to an SVR, so it’s a good idea to stay on top of those communications.
What’s the Process for Remortgaging?
Remortgaging doesn’t have to be overwhelming. Here’s how I would break it down into simple steps:
- What Should I Do Before Remortgaging? First, take a good look at your current mortgage. How much do you owe? What interest rate are you paying? And most importantly, what do you want to achieve by remortgaging? This gives you a clearer picture of your options.
- How Important is My Credit Score? Your credit score does play a role in the deals available to you. But if you’ve had issues in the past, don’t worry. At Mortgage Bridge, we specialise in helping people with bad credit remortgages – there are still options out there for you, even if your credit history isn’t perfect.
- What Fees Should I Expect When Remortgaging? Yes, there are some costs involved. These can include early repayment charges (ERCs) if you’re leaving your current deal early, arrangement fees, legal fees, and valuation fees. But don’t let that put you off. The savings you can make in the long run often far outweigh these initial costs.
- How Do I Compare Different Remortgage Deals? I always recommend comparing a few different deals to make sure you’re getting the best rate. But it’s not just about the interest rate – check the fees, the term, and any additional features that might suit your needs. That’s where we come in to help guide you through the process.
- What Happens After I Apply for a Remortgage? Once you’ve found the right deal and submitted your application, the lender will assess your paperwork, possibly request a property valuation, and then make you an offer. The whole process usually takes around 4-8 weeks, so it’s important to plan ahead.
How Much Does It Cost to Remortgage?
Now, I know what you’re probably thinking – what are the costs involved? Remortgaging does come with some fees, and it’s essential to be aware of them. Let’s break them down:
- What Are Early Repayment Charges (ERCs)? If you remortgage during your current deal, you could face early repayment charges. These charges can be a percentage of the remaining balance, so it’s important to know how much they’ll be before you make any moves.
- Are There Arrangement Fees for a New Mortgage? Some lenders charge a product or arrangement fee to secure a new mortgage deal. It can be up to £1,000 or more, so it’s worth factoring this into your decision. If you choose to add the fee to your mortgage, just keep in mind that you’ll pay interest on it over time.
- What Legal Fees Are Involved? You’ll likely need to pay for some legal services, such as conveyancing, property valuations, and title checks. But the legal fees for remortgaging are usually lower than when buying a new home, so don’t worry too much.
- What Are Valuation Fees? Your lender might require a property valuation to confirm your home’s value. This fee can vary, depending on your lender and your home’s value.
Can I Remortgage with Bad Credit?
Here’s the big question: Can I remortgage with bad credit? The answer is yes! Even with bad credit, there are still remortgage options available to you. It might be a bit trickier, but working with a specialist like us at Mortgage Bridge can help you find the best deals, even if your credit history isn’t perfect.
We work with a range of lenders who specialise in bad credit remortgages, so don’t let past mistakes stop you from exploring your options.
Why is Remortgaging Worth It?
So, at the end of the day, why should I remortgage? The answer is simple: It can help you save money, access more funds, or secure a better deal. Whether you’re looking to lower your monthly payments, release equity, or switch to a more flexible mortgage, remortgaging is a fantastic tool to have in your financial toolbox.