Remortgaging How Does It Work

PUBLISHED: 16 December 2020
DISCLAIMER: The information in this blog post may be outdated and may not reflect current financial practices or market conditions

If you are looking at remortgaging your home, our advisors will look at a number of lenders from across the market to compare products to ensure you have the best remortgage product that suits your individual circumstances. We will check to see how much you can remortgage for, and assist with the process from enquiry to completion, by dealing with the solicitors, surveyors and any other 3rd party to ensure the transaction is smooth and hassle-free.

According to a survey carried out by Ipsos Moi for Panorama, 31% of people who rent or have a mortgage find that payments take up more than a third of their total household income. Even if your mortgage payments are below this level, if they are a significant part of your budget then getting a better deal for your mortgage could boost your funds by a lot and will help to increase your personal wealth as well. Like other businesses mortgage lenders want to be on the lookout for new customers and will give you very good rates for a limited amount of time to get you on board. These rates are often called introductory rates, in the UK these generally last between two to five years, after that time period you will then return to the standard variable rate (SVR). When you are looking at remortgaging you have three options Staying on the SVR, remortgaging with your existing lender or remortgage with a new lender.

Although there is the potential to make healthy savings by remortgaging, it’s worth remembering that there are also costs involved. As you are essentially taking out a new mortgage, you will be looking at paying the same sort of fees as you did when you first brought your home. Your home will need to be revalued and there will be legal paperwork to be processed. It is also entirely possible that your current lender will charge an exit fee to close off the mortgage. The golden rule is to add up all the costs involved and then look at the savings that are on offer, then you see which one is higher.

We can help you with this process if you want to know more then get in contact with us.