The Remortgage Process

First, some good news. The procedure for remortgaging is simpler and cheaper than setting up the initial mortgage for a house purchase. And now, the bad news. Remortgaging your home is still going to cost money, and it’s important to do some homework first, but by taking your time and understanding the various costs and formalities involved, it should be relatively pain-free.

What steps are involved in remortgaging?

Remortgaging is rarely a quick process. There are several stages involved, from the initial fact-finding, and comparing different remortgage deals, to the application process itself. But if you know what to expect, it should be a smooth and stress-free process.

  1. Talk to your current mortgage lender first

The first stage in the process is to talk to your current mortgage provider. You’ll need to speak to them to get a redemption quote, which should include any early redemption penalty, if applicable. In many cases, if your bank or building society thinks you are considering switching to another institution, they will offer you a better deal. It’s worth thinking carefully about any deal they put on the table before deciding to switch, as staying put can help save you time and money. If it’s clear you can get a better remortgage deal elsewhere though, then it may be time to go to another lender.

  1. Shop around to compare remortgage deals

It may be stating the obvious, but there’s no point in switching mortgage providers unless you shop around and actually find yourself a better deal. If you’re looking for a better deal, you need to understand the different products on the market, and make sure you are comparing like with like when doing your sums. Some of the products you might want to consider are:-

  • Tracker Remortgage
  • Standard Variable Rate Remortgage
  • Fixed Rate Remortgage
  • Flexible Remortgage

It goes without saying, the right mortgage product depends on your circumstances and they all have different pros and cons. Remortgage Search can take the hassle out of doing your homework – with access to a panel of lenders and over 7,500 mortgage products, we provide unbiased and free advice about remortgaging. Simply use our enquiry form to kick off the process.

  1. The Mortgage Application Process

Once you have a clearer idea of the new monthly payments, and the fees involved in changing your mortgage product you should be in a position to make a call as to whether the ends justify the means – i.e. whether it is worth the time and money to switch. If you decide it is, then the process will normally involve some or all of the following steps.

  • A formal application to be made online, over the phone or in person at the bank/ building society;
  • The lender will conduct a credit history check to make sure you have not defaulted on any payments or other loans;
  • You’ll normally need to provide details of your employment and monthly salary;
  • Self-employed applicants will sometimes need to provide trading accounts;
  • Once the mortgage is agreed in principle, a basic valuation of the property is normally required (although when remortgaging with a current lender this is not always needed);
  • When switching lender, the new mortgage company will request that a solicitor carries out local searches and checks the title of your property;
  • Once all searches and checks have been completed, the new lender releases the mortgage funds, and the solicitor repays the previous lender;
  • The solicitor then updates the Land Registry.

Remortgage Costs – how much will it cost to switch mortgages?

As you already own the property, you won’t have to pay Stamp Duty again. There are a number of other expenses to be aware of though, such as:

  • Valuation fees;
  • Arrangement fees charged by the new mortgage provider;
  • Land Registry fees;
  • Solicitor’s fees; You can get an Online Conveyancing Quote from here.
  • Early redemption fees;
  • Mortgage broker’s fees.

How long does the Remortgage Process take?

From start to finish it normally takes between four and eight weeks to complete the remortgage process. Once you have made the switch to a new mortgage and started to see the benefits, the effort involved should seem very much worthwhile.

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