How Just Mortgage Brokers Can Help You
A popular option amongst customers, remortgaging is, put simply, paying off an existing mortgage on a property by acquiring a new one. Remortgaging a property can improve buyer’s situations financially, either raising initial capital in a swift manner allowing one to consolidate shorter term debts, paying off a mortgage earlier than anticipated and thus reaping the rewards or reducing the size of repayments on an existing mortgage.
Remortgage With Just Mortgage Brokers
At Just Mortgage Brokers, we have considerable experience in dealing with customers looking to remortgage properties for a wide variety of reasons. This experience places us in the ideal position to secure the best remortgaging options based on your specific needs. We have access to over 11,000 mortgages from over 90 lenders, so can locate exclusive deals that are otherwise unavailable on the high street or online.
Our expert advisers will provide you with impartial advice on whether remortgaging is the best finance option for you based on your specific requirements and circumstances.
Regardless of your position as a property owner and your goals in remortgaging your property, you will feel assured in the knowledge that Just Mortgage Brokers will be able to manage your remortgage with confidence, providing you with the very best deal. Contact us today to discuss how we can help.
When can I remortgage?
Strictly speaking, you can remortgage from one lender to another at any time. However, there can be factors which, while technically not preventing you from remortgaging, can make it financially unwise to do so. One of the main barriers to remortgaging can be the existence of early repayment charges on your existing mortgage deal.
Many mortgage products offered in the past few years have effectively had “tie-in” periods. Usually, the tie-in is just for the duration of the mortgage deal, whether that’s two, three or five years. Other products may have a tie-in period that extends beyond the actual product term, although this is rarer. In either case, repaying your mortgage within the defined period will result in an early repayment charge being applied.
Early repayment charges can amount to thousands of pounds – often they are calculated as a percentage of the mortgage balance. When considering a remortgage, early repayment charges and other fees must be taken into account. The fundamental question is: will the amount you will save in interest by transferring to a new mortgage with a different lender outweigh the amount you will have to pay in early repayment charges and other fees associated with closing your existing mortgage and taking out a new one?
If there is an ideal time to remortgage, it is when your introductory deal comes to an end. Some lenders may offer to transfer you onto a new deal to try to keep your business, but if not then there is a danger that your mortgage will revert to the lender’s Standard Variable Rate (SVR). SVRs tend to be quite a bit higher than other products on the mortgage market, so you could experience a sharp hike in both interest rate and your monthly payments.
What to consider when remortgaging
Just as when you take out a new mortgage to buy a home, there are a number of factors to think about when considering remortgaging. The first is how much you want to borrow. If it is a straightforward like-for-like remortgage, then that will be the amount outstanding on your existing mortgage balance. However, many people use remortgaging as an opportunity to borrow extra and raise capital for home improvements, vehicle purchase or some other reason.
You’ll need to consider both the overall total term of the mortgage – which you may want to reduce or extend in relation to your current mortgage – and the term of the product that you sign up for. Products tend to be either short-term (two to three years), medium-term (five years), or long-term (ten years). You will also have a choice of product types, such as fixed rates, discounted rates and trackers.
The main factor that most people consider when looking at remortgage products is the interest rate. This is obviously important, as it determines how much you will be paying over the mortgage term. However, it’s also vital to consider all other aspects of the mortgage product. For example, are there high arrangement or booking fees that will increase the overall cost? Does the new product itself have early repayment charges, and will you be taking a risk by tying yourself into the deal for the agreed term? Are there any other factors that are important to you – for example, the flexibility to make overpayments or early part repayments to the mortgage without penalty?
What is involved in remortgaging?
Many of the stages of the remortgaging process are similar to that of getting a mortgage to buy a house, although in other ways the process is simplified. You need to get your property valued, as well as engage a solicitor who will handle the transfer of deeds from one lender to another. However, it’s not unusual for lenders to offer to arrange these as part of their service, often as part of a “fee-free” remortgage offer.
On submitting your mortgage application and supporting documentation to the new lender, it will be subject to the same checks as any other residential mortgage – including an assessment of your ability to afford the loan and a check on your credit record with an external credit reference agency. After you receive your mortgage offer and all legalities are confirmed to be in order, the lender will repay your existing mortgage and your new mortgage will commence. The time the remortgage process takes can vary from lender to lender and also depend on whether any complications arise, but on average it tends to take from four to eight weeks.
How can I get the best remortgage deal?
It’s possible to search for mortgage deals using price comparison websites or searching various lenders’ products yourself, but this can restrict the range of deals you can choose from, especially if you stick to just the big high-street banks and building societies. A professional mortgage broker can search for deals from across the UK mortgage market, and will usually have access to exclusive deals that aren’t available on the high street.
At Just Mortgage Brokers, we have many years’ experience of helping homeowners secure the best remortgage deal for their circumstances, so get in touch today to find out how we can help.