Remortgage Advice

Remortgage Advice

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.

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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.

benefits of remortgaging

There are a number of benefits in remortgaging. You can remortgage your property in order to secure a better rate than your current deal which in turn can save you money each month. When remortgaging you can also benefit from reducing your overall term which can sometimes save you thousands of pounds over the course of your mortgage. If there is enough equity in your property, you can also remortgage your property to release some of this and use the surplus money for home improvements or consolidating debts. There may be other personal reasons to release some of the equity locked up in your property. Releasing the equity by remortgaging can cost you less per month, then taking out shorter term unsecured loans. This can be very useful when trying to budget on a day to day basis.

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.

Should I Remortgage?

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?

When you shouldn’t remortgage

Remortgaging your property may not always be a good idea or financially viable. More often than not your current lender will have you tied into their product for a set period of time. This is usually between 2 to 5 years. During this period if you remortgage to move lenders then your current lender is very likely to charge you an early repayment charge. This charge can end up being several thousands of pounds. Another reason to not remortgage is if your loan size is not large enough. If your loan is not a significant size then sometimes the lenders arrangement fees and set up costs can offset against any savings you make and actually end up costing you more in the long term.

How Do I Remortgage?

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.

Costs of remortgaging

Remortgaging can cost very little from the outset as most lenders compete against each other to win your business. It is quite common for lenders to offer Free Mortgage Valuations and a Free Legal Package to carry out the conveyancing. That said some lenders may not offer any benefit and both the cost of the Mortgage Valuation and Legal Costs will have to be paid by you. This is on top of any mortgage lenders arrangement fees and Mortgage Broker fees that may become payable. Other costs to look out for are any early repayment charges to your current lender and any nominal fees that may be charged for closing down your current mortgage. When our Mortgage Advisers assess your circumstances, they will take into account all of the fees mentioned ensuring that remortgaging is the best option for you.

Fee free remortgages

When deciding which mortgage deal is best to remortgage onto, it is worth noting that there are plenty of products that are completely fees free. These products will typically have the Mortgage Valuation and Legal Package included free of charge as well as no arrangement fee. Some products will also offer a small amount of Cash Back to offset against any closing down fees you may incur with your current lender. Fees free doesn’t always mean it’s the best or most suitable product for you. That’s why it always worth speaking to one of our in house remortgage expert advisers.

Can I get a 95% remortgage

Here at Just Mortgage Brokers we receive many enquiries asking if a remortgage can be arranged up to 95% of a residential property value.  Whilst it’s true that in the market as a whole the maximum most lenders will permit a remortgage to is 85% of the value, there are some that will lend up to 90% and indeed, as at the time of writing, some that will consider up to 95% loan to value.  Certain criteria will still be applicable such as the lenders assessment of the borrower’s affordability and also if the remortgage includes any element of capital raising eg. if any is being used for debt consolidation this may reduce the overall loan to value a lender will permit.  Different limits will also apply if the property is a buy to let.

Can I remortgage a shared ownership property

You can remortgage a shared ownership property in exactly the same way as a conventional mortgage. The only difference being that shared ownership mortgages are only available via selected lenders.

Our expert Mortgage Advisers can help you find the best shared ownership remortgage deal based on your individual circumstance.

Can I remortgage a buy to let property

Remortgaging a Buy to Let property works in the same way as when you purchase a property using a Buy to Let Mortgage. Lenders will assess the current monthly rent that can be achieved on the open market, along with your personal circumstance, property value and available equity in the property.

Our Mortgage advisers can assess all of this for you and give a very good indication of if you can either save on your monthly repayments or if you can release some of the equity locked into the property.

Can I remortgage a help to buy property

Care must be taken when looking for lenders to remortgage to, as not all lenders have products available for the help to buy scheme. It is also important to note, whether you are on the original Help to Buy 1 or the subsequent Help to Buy 2 government scheme. Whichever scheme you are on it is certainly possible remortgage if not always straight forward.

Our expert Mortgage Advisers understand the Help to Buy scheme and the details surrounding them and can help guide you in remortgaging to a better deal.

Can I remortgage an interest only mortgage?

An Interest Only mortgage can be remortgaged onto a new deal. However, you must be able to adhere to some strict criteria as these types of mortgages are deemed as higher risk lending by the regulator. Typically, lenders will consider an Interest Only remortgage for those who have good levels of income, loan to values of 75% or less, a significant amount of equity, as well as minimum property values above certain parameters. To check if you qualify for an Interest Only remortgage it is advisable that you get in touch with one of our Interest Only specialist Mortgage Advisers who will be able guide you further.

Best remortgage fixed rates

Our expert Mortgage Advisers will look at your case on an individual basis and source the most appropriate product for you. They will take into account your current and future needs and help you decide whether you need a shorter term 2 or 3 year fixed rate or a slightly longer term 5 year fixed rate or more.

The best remortgage fixed rates can come and go in an instant so it is always advisable to speak to us to be in with a chance of efficiently securing one of these rates for you.

Best remortgage tracker rates

The best remortgage tracker rates are not always available on the open market as some lenders will only offer their best and most exclusive remortgage rates via Mortgage Brokers like us. Get in touch with an expert adviser today to see if you are eligible for some of the best remortgage tracker rates available.

Best remortgage lenders

Finding the best remortgage lender very much comes down to who is offering the most appropriate scheme that meets your needs at the time you look to apply.  Although there are numerous lenders available and new challenger banks entering the market, they all have their own individual criteria to assess who they are happy to lend to.  With this in mind the best remortgage lender for you may not be the same as the next borrower and indeed may not even be available to them based on their circumstances and/or requirements.  The word “best” although widely used, can be misleading in this context.  In our opinion, the most important factor when deciding on the best remortgage lender is actually finding the most appropriate scheme for your individual situation.

Product Transfers

A product transfer is a technical term used to describe the process of changing the rate with your current mortgage provider usually upon or nearing the expiry of your current deal.  There are many pros and cons of remaining with your current lender with the main benefit being, that if simply making a like for like change i.e. not borrowing any additional funds, no additional underwriting or affordability checks will likely be necessary making the process relatively simple.  However, although many lenders are now much more productive with their customer retention, remaining with your current lender may not be right for you if they are not offering you the most appropriate or best value product when compared to the market as a whole.  Here at Just Mortgage Brokers we will consider your current lenders offers and also take all other aspects such as costs etc into consideration when making our recommendations thus ensuring you can feel confident that the route you decide upon is the most appropriate.

Best remortgage mortgage Rates

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.

Remortgage Specialists 

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.