What is a Remortgage?

What is a Remortgage?

Remortgaging is when you move your mortgage on your existing property, from one lender to another. Your new mortgage will replace your old one.

You may want to remortgage if you’re:

• Coming to the end of your current mortgage deal
• Making changes to the mortgage
• Looking for a better deal
• Wanting to borrow more money against your property

Things to consider:

• Costs – there may be a cost when moving your mortgage to a new lender.
• How long it will take to complete.
• Legal work – even though you’re not buying a new property, remortgaging does involve some legal work. some lenders will appoint a conveyancer for you, or you may be able to choose your own

Costs

There may be costs when moving your mortgage to a new lender so its worthwhile knowing those costs before you proceed. These costs could include:

• Booking or application fees
• Valuation Fees
• Conveyancing costs
• Early repayment charges from your existing provider.

How long does the remortgage process take?

The conveyancing process would typically takes around 4-6 weeks but will depend on your personal circumstances and your mortgage needs. Proving all the information your conveyancer needs without delay will speed up the process.

What are Early Repayment Charges?

An Early Repayment Charge (ERC) is a fee for ending your mortgage early, for example, leaving a five-year fixed rate deal after just two years. The cost of an ERC is based on the outstanding mortgage amount and the point of your deal you are at. The lender typically applies a 1% charge for each year you have remaining on your mortgage deal. However, this can be different with each lender, you can revert to your original mortgage so confirm the terms of your mortgage.

Speak to a mortgage broker today to seek advice on the best remortgage options for you.

A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME OR PROPERTY. YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.

YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU REMORTGAGE.