Remortgages
A remortgage is the process of taking a new mortgage with a different lender, to repay your current arrangement. This can be a great way of saving money and you may remortgage for a number of reasons including:
- Obtaining a better rate of interest than your current lender can offer
- Raising cash for home improvements or other purchases
- Consolidating other credit commitments
- Capital raising to purchase a second property
- Repaying a mortgage which has reached the end of its term
With thousands of deals on offer, we make finding the right Remortgage easy
We’ll search the market to find the best fit for you. Fill out our short form and we’ll be in touch to explore your options.
When can I Remortgage?
You can remortgage at any time but you should be mindful of any Early Repayment Charges (ERCs) that you have with your existing lender for leaving a current rate of interest. In most cases it is advisable to wait for the ERCs to expire before a new mortgage is completed, although with many mortgage offers dated for up to 6 months, the process of applying for the new borrowing can begin a long time prior to this.
Remortgaging for a Better Rate
When your current mortgage deal ends, you will revert to your lender’s Standard Variable Rate (SVR) and this tends to be higher, leading to an increase to your payments.
To avoid moving onto the SVR, it is advisable to make arrangements in advance so that you move onto a new deal which meets your needs at that time. Your existing lender may offer you a product transfer to retain your business and these can typically be arranged in advance of your deal end date. This advanced period tends to be 3 months ahead of your rate expiring and some lenders have increased this further to help ease concerns in the current climate. Should your existing lender be unable to offer you a new deal that you are happy with, remortgaging to another lender may be the answer.
At Creative Lending Solutions we can help you with either a product transfer or a remortgage, and we will compare the cost implications of each.
Remortgaging with Additional Borrowing
When you remortgage to another lender you may wish to increase your borrowing to cover the cost of home improvements, other purchases or to repay existing credit commitments. If you are repaying credit commitments it is important to note that the total cost of these may be higher over the term of the mortgage and you should think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage.
You will have to demonstrate affordability for the total amount you wish to borrow and there will also need to be a suitable amount of equity in your property to accommodate the larger mortgage.
Lenders will vary in their assessment of affordability and Loan to Value limits on raising capital, but at Creative Lending Solutions we cut through the work needed to find the right lender for you.
You will benefit from the many years of experience we have helping people, just like you, to reach their borrowing objectives.
Questions you may have
What other changes can I make when I remortgage?
Remortgaging provides an ideal time to fully review your mortgage arrangements. In addition to a new rate of interest and additional borrowing, you may wish to change other features to ensure your mortgage still meets your needs. The term of the mortgage may be adjusted if desired and the repayment method can also be changed, subject to your particular aspirations and in keeping with the new lender’s criteria. We will be pleased to look into different scenarios to ensure a suitable outcome is achieved.
What if rates improve after I've applied for a new mortgage?
If an application for a remortgage is made and subsequently there is an improvement in interest rates, it will still be possible to benefit from these. Providing that the new mortgage has not yet completed, we can request that the lender switches the rate on your application or we can even move to an alternative lender if this will be to your benefit. We charge no additional fee for switching rates or lenders during an application.
Will I need a solicitor when I remortgage?
In most cases a lender will provide a fees-assisted legal team to complete the basic conveyancing work for a remortgage and in reality, this means there will be little or no cost to you. Some lenders will provide cashback on completion if you wish to use an alternative legal firm, providing that this firm is listed on their conveyancing panel. On occasions where the cost of legal work is not covered by the new lender, the fees will only tend to be payable on completion of the new mortgage and can often be deducted from the advance of funds.
Will I need a new valuation when I remortgage?
All lenders will require their own assessment of your property to ensure it represents good security for the new mortgage. Many lenders offer a free basic valuation for a remortgage and this may often be carried out remotely, without the need for you to be at your property. Where a free valuation is not available with the lender, the valuation fee will be payable on application and some offer a refund of this fee on completion of the mortgage. If the new lender does charge a valuation fee this is usually set to a scale according to the value of the property.
How we can help you Remortgage
At Creative Lending Solutions we have a detailed knowledge of the mortgage market that stretches beyond the headline rates of the lenders. By understanding the unique criteria of one lender over another this better helps us recommend the most appropriate option to you; whether this is simply to obtain a more favourable deal, to raise additional borrowing or to make other changes to your mortgage arrangements.
We keep things as simple as possible and will be on hand at every step of the remortgage process. We will complete the lender’s application form and forward them your supporting documentation. We will respond to the lender’s underwriter with answers to any questions they may have and to offer assurances where they may be required. Once your new mortgage offer has been issued, we will remain available for any questions you may have and for any changes that may be needed up until completion.
More great reasons to get in touch
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- Over 20 years’ industry experience
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Your home may be repossessed if you do not keep up repayments on your mortgage.
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