2) How much can I save?

When changing products from one provider to the next, it is always important that you consider the involved costs of doing so, along with any applicable rate changes that may either leave you better or worse off in the long run. Although our online mortgage repayment calculator will give you a quick and reliable insight as to the overall cost of borrowing, along with the fixed monthly repayment amount, it is not designed to provide you with all the information you need before making a decision. For this reason, it is always a good idea to speak with one of our FCA authorized and regulated advisors in order to get the full picture. Different products can vary enormously in value, due to the fact that different lenders have different borrowing costs. This include things like legal fees, surveying costs, administration charges and early repayment fines or penalties. As a leading UK property finance company, we deal with an extensive panel of lenders on a daily basis and we are always able to help by sourcing the most flexible borrowing products with the most competitive rates and the lowest fees. This is done in accordance with your own specific remortgaging needs in mind. In effect, our experienced team can help you to save money almost immediately.

Frequently Asked Questions

What is a Remortgage?

Remortgaging is essentially a method of replacing your existing mortgage with a new mortgage. The lender that you use to obtain the remortgage takes over the mortgage from your previous lender. Homeowners often choose to remortgage their property when interest rates are lower. With a lower interest rate, the monthly repayments may be lower.

How Do Remortgages Work?

A remortgage is simply the process of moving from one mortgage deal to another. In some instances, borrowers remortgage with the same lender, swapping their current deal for a better or more affordable deal. Remortgaging is most common when an introductory deals or discounted rate on a mortgage comes to an end, at which time the borrower may consider other mortgage deals with the same lender. However, there’s also the option of switching to a completely different mortgage provider. Competitiveness routinely drives lenders to offer incredible deals for those willing to switch from their mortgage lender and loan. As the best deals are almost always available exclusively for new customers, shifting mortgage providers on a regular basis can amount to significant savings. If a competing lender is able to offer you a better deal, it simply makes sense to switch. Nevertheless, it’s important to carry out a whole-of-market comparison, before making such an important decision. In addition, you’ll also need to consider any additional borrowing costs or terms the new mortgage brings into the deal. Seeking independent advice before going ahead is essential.

How to Compare Remortgages?

The vast majority of major High Street lenders offer a variety of remortgage options. In addition, there are dozens of specialist lenders offering exclusive deals and discounts you won’t find on the High Street. Comparing the UK market in its entirety therefore means working with a specialist broker. Finding the best deal to suit your requirements and budget means to set your sights beyond the High Street. With a remortgage deal, it isn’t only about securing a lower APR. It’s also about any additional borrowing costs incurred, along with the quality of service provided by the lender. Not to mention, the complexity and inevitable delays involved in the application and switching process. There are countless factors to take into account, emphasising the importance of seeking independent support. Still, get it right with a good remortgage deal at the right time and you could wipe thousands off your outstanding debt. If you’re currently locked into a deal that’s anything but competitive, contact UK Property Finance to discuss the alternative options available.

How Much Are Remortgages Fees?

Remortgage fees vary enormously from one lender to the next. Hence, the importance of shopping around to find the best possible deal. In some instances, what appears to be a slightly better APR may be augmented by the various fees and charges bolted onto the deal. Many remortgage fees are negotiable – particularly when working with an independent broker. Nevertheless, there are various fees and charges that accompany the remortgage process as standard. For example, you can expect to pay your current mortgage provider an early repayment fee. In a typical example, this could be in the region of 1.5% of the outstanding mortgage balance. Or perhaps a fixed fee, if agreed at the time the mortgage was taken out. With your new mortgage provider, you can expect the same kinds of arrangement fees, valuation fees and general admin costs when taking out a standard mortgage. Once again however, all such costs can be negotiated and brought under control with the right representation. A quality remortgage has the potential to save you a fortune, but only if approached strategically and mindfully. Secure independent representation from an experienced broker and be sure to compare as many deals and lenders as possible.

Where Can You Get a Remortgage?

You can obtain a remortgage from the same lenders that offer new mortgages. Banks and various lenders that specialize in remortgaging often offer low-interest rates to lure homeowners into remortgaging. However, a lower interest rate does not always help you save money.

When Should You Apply for a Remortgage?

The primary reason for remortgages is to save money. When you replace your existing mortgage with a new one that carries a lower interest rate, you may pay less over the length of the loan. For several years, interest rates for new home loans have been historically low. Individuals that obtained a mortgage before the interest rates dropped may save money by remortgaging. When you have a lot of equity in your property, obtaining a remortgage may provide an option for consolidating your debt. With this option, you roll your existing mortgage and debts into one loan, either to simplify repayments or to avoid penalties on your debt. Some homeowners may also choose to remortgage to cover expenses, such as home renovations. The cost of the renovations is added to the remaining value of the existing mortgage, providing an alternative to a traditional loan.

When Should You Avoid Remortgaging?

While remortgaging can help save money in certain situations, there are also situations where remortgaging is not recommended. For example, if you do not have a lot of equity, you may have trouble finding favorable interest rates for your mortgage. You may also want to avoid getting a remortgage if the value of your home has significantly dropped, you already have reasonable interest rates, or you are close to paying off your existing mortgage.

Adverse Credit History And Remortgages

How Does Poor Credit Impact A Remortgage?

The answer depends on the severity of the damage, when it was inflicted and the cause. Not to mention, the attitude the lender has to poor credit scores. Just as long as the damage isn’t too severe, your remortgage application may still be accepted – albeit with a somewhat higher overall borrowing costs.

Is It Possible To Remortgage With Poor Credit?

Absolutely, but the outcome will again be determined by the nature and severity of the damage. If you have severe issues on your credit report from the last few months or so, you’re unlikely to be accepted. This counts double if you are in arrears, or have recently missed mortgage payments. By contrast, if it’s simply a case of having missed the occasional credit card payment or purchase instalment, the lender may consider the individual merit of your case. As it can be more difficult to secure a competitive remortgage deal with poor credit, it pays to work with an independent broker.

Who Should I Approach With My Application?

As mentioned above, the best approach is to work with an independent broker with an established network of specialist lending partners. These days, the vast majority of High Street banks aren’t interested in applicants with poor credit. It’s a simple black and white requirement to fulfil – you either have good credit or you’re out of luck. By contrast, there are dozens of specialist lenders across the UK who focus primarily or even exclusively on customers with imperfect credit scores. Along with a much better chance of being accepted, you’ll also find the best deals from those who accept poor credit for what it is. For the easiest way to compare the UK market in its entirety, join forces with an established independent broker.