Remortgaging your home

When your current mortgage deal is coming to an end, it can often seem easy to take a new contract with the same lender. This is a common mistake. Just because your current lender was offering a great deal a few years ago does not mean they are offering great deals now. Accepting the agreement from the existing lender could cost you financially.

Considering the option to remortgage

Moving your mortgage from one lender to another or increasing the amount of money you’re borrowing with an existing lender is called remortgaging. As a homeowner with a mortgage, you have financial options:

· Reduce your monthly repayment amount by changing your mortgage product

· Benefit from a better interest rate

· Shorten the time taken to repay your mortgage

· Borrow more money for home improvements or to pay off outstanding debts, referred to as debt consolidation

The mortgage is secured against the same property but you’ll still need to go through an application process.

Fixed-rate mortgage products

A fixed-rate mortgage product will mean you know how much your monthly payments will be over a certain period. When this deal comes to an end, lenders will automatically put you onto a variable rate or SVR. This tends to be a higher interest rate so it’s a good idea to prepare for the end of your fixed-rate product.

Five Star Mortgages will always contact you before your fixed-rate deal comes to an end. The best time to do this is 3 months before the product expires so you can find another product. We can look at the whole of the market for your next mortgage product and will check with your existing lender on the deals they are offering.

Find the right product for your needs

The remortgage process is a great opportunity for you to review your finances. It’s not dependent on having a fixed-rate product, you might just want to review your mortgage arrangements, consolidate your debts onto a lower interest rate, borrow more money to carry out those home improvements, or simply reduce your monthly repayments.

We’ll discuss all these options with you to better understand your requirements. Once we’ve found the right product for your needs, it’s our job to guide you through the process.

· Completing the application form together and submitting it on your behalf

· Explain the mortgage offer that comes back from the lender

· The lender, if it’s different from your current provider, will arrange for the mortgage records to be transferred through a solicitor

· On the day your mortgage transfers, you’ll receive a final statement of mortgage costs and your account will be closed with the previous lender

· Any overpayments you’ve made by continuing your monthly repayments will be refunded by the solicitor

There are several fees to consider during the remortgage process. These include a booking or completion fee charged by the new lender, solicitor fees, and a property valuation. You also need to be aware of Early Redemption Fees (ERC) that might be charged by your existing lender.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Frequently asked question

Q. Is it a good idea to remortgage?

A. This will 100% depend on your circumstances. If you’re remortgaging just to save money then you have to consider all the fees and make sure it’s beneficial long term. Just because the monthly payment is cheaper does not always mean you’re better off especially if the mortgage deal comes to an end and there are high fees.

But, if you want to reduce your monthly repayment amount, borrow more money or consolidate all your debts then with our help, remortgaging is worth considering. Our software will help you work out what is the best deal for you in the longer term.

Q. Is the process quicker than taking out a mortgage for a new house?

A. In general it should be because you’re not dependent on other house buyers in a chain. You’re dealing directly with the lender on a property you already own. It can take up to 8 weeks after your application is submitted to complete but it will depend on your circumstances. We are here every step of the way to ensure all the relevant documentation is ready and submitted quickly.

Q. Is a product transfer the same as a remortgage?

A. A product transfer is something your existing lender would offer you. It’s an extension of an existing product or a new product but you’re remaining with the same lender.

The adviser and our team will be on hand every step of the way to make the transaction as smooth as possible. So call us today for a free initial consultation.