Category: Remortgage

Remortgaging early, where you switch your current mortgage to a new deal with a different lender or your current one shortly after securing it, can offer various advantages.

It can help you adapt to new circumstances, help you adjust to new circumstances, and allow you to explore your options.

However, it also comes with various considerations and challenges. This guide explores everything you need to know about remortgaging six months after purchase to help you make an informed decision.

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How Soon Can You Remortgage a Property After Purchase?

Most lenders allow you to remortgage to a new deal six months after you’ve owned the property based on the date your name was registered on the title deeds as the owner with the Land Registry. This is called the six-month rule.

However, not all mortgage lenders offer this option. You must also consider how viable remortgaging is for your financial situation.

Exiting your existing mortgage to activate a new deal will come with costs.

You may need to pay a penalty if you initially signed up for a two-year, three-year, or five-year deal on a discounted or fixed-rate mortgage and exit before the end of that period. In some cases, it may still be your best option.

What Is the Six-Month Rule?

The six-month rule is more of a guidance than a law or rule. The Council of Mortgage Lenders (CML) issued the rule to close a loophole where property investors and homebuyers could increase their borrowing to 100% soon after buying a property.

The rule encourages lenders not to accept applications against a property until the owner remains registered at the Land Registry for at least six months.

The guidance applies to UK mortgage lenders, conveyancers, and solicitors, where you can make mortgage applications.

Lenders interpret the rule differently and apply it to their lending criteria. Some choose to lend after six months, others extend it to 12 months, and some even lend without requiring a minimum ownership period.

What Is a Day One Mortgage?

Although they’re called day-one mortgages, the term usually applies to remortgage applications within the first six months of owning a property.

Day-one mortgages are rare since most lenders will not offer you a remortgage product if you’ve only owned the property for six months or less.

It can also be challenging to prove you’re the property owner since it can take months after you’ve purchased a property for the Land Registry to add you to the title deeds.

This can cause delays, and you may need your solicitor to confirm property ownership.

What is the Purpose of Waiting Six Months?

The main aim of the six-month rule is to prevent money laundering and mortgage fraud.

Before the 2008 crash, you could purchase properties using a mortgage or undeclared cash and apply for a remortgage with a new lender immediately after completion using a higher valuation than the purchase price.

It was easy for people intent on money laundering to pay cash for properties and immediately remortgage to get the money back out.

Lenders were left fully exposed, and during the crash, valuations found the properties to be worth less than the outstanding mortgage, resulting in huge losses for banks and lenders.

The rule to wait six months was necessary to stop such issues and back-to-back transactions.

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Why Would You Want to Remortgage Early?

There are many genuine and valid reasons you may want to remortgage within a short period after taking ownership of the property. These include:

• You recently inherited a property and want to release some equity or capital.
• Your financial situation has suddenly changed, and you want to remortgage and release some equity.
• You initially chose a variable-rate mortgage, and a rapid rise in interest rates doesn’t suit your current needs.
• You’ve finished renovations, raised the property value, and want to borrow against the new value.
• You purchased the property using money from friends and family to speed up the process and want to pay them back.
• You used a bridging loan to buy the property and want to repay it.
• You want to increase your borrowing to finance debt consolidation or home improvements.
• You purchased the property at auction and want a long-term mortgage.
• You initially bought an uninhabitable property, and it is now ready for a mainstream mortgage after some developments.

Requirements to remortgage sooner

Several lenders will consider your remortgage application within six months, but they’ll scrutinise it and only approve it in some instances.

Most eligibility requirements are similar to other mortgages, but you must provide additional documentation depending on why you’re remortgaging. These include:

• A purchase audit trail.
• A solicitor’s confirmation that you’ve requested an update at the Land Registry if they haven’t listed you yet as the owner.
• A completion statement confirming the property’s original purchase price.
• Evidence for increased valuation, such as completed renovations or developments.

Factors To Consider When Remortgaging 6 Months After Property Purchase

You must consider various to determine whether remortgaging six months after the property purchase is the best option. These include:

Early Repayment Charges (ERCs)

You may face penalty charges for exiting before the end of the deal if your current mortgage has ERCs.

These charges compensate the lender for the interest they would have earned over the fixed term of the mortgage.

The charges usually decrease over time and may not apply once you reach the end of your fixed or introductory period.

Market Conditions

Ensure you monitor interest rates and market conditions when making your decision. You might consider remortgaging when interest rates are lower than your current rate to save money on your monthly payments.

Lender Policies

Different lenders have varying policies regarding when you can remortgage. Some may have specific timeframes or waiting periods, so it’s vital to check your existing mortgage agreement to avoid hefty fees and penalties.

Final Thoughts

The market for remortgaging soon after buying a property is limited and includes many specialist lenders. As a result, it’s better to seek expert advice from brokers experienced in such cases to help you find the best deal.

A mortgage advisor can present the options to you, prepare your application for the best possible outcome, and assist you every step of the way.

Call us today on 01925 906 210 or contact us to speak to one of our friendly advisors.

If you’ve just bought a financed property 6 months ago and tell family and friends that you want to remortgage it, you’ll probably get a few raised eyebrows.

It may seem like remortgaging at 6 months is too soon or even impossible.

After all, you’ve just been through the exhausting process of proving you can afford your current mortgage!

It’s bound to be more exhaustive the second time – especially if it’s so soon.

That said, in some instances, remortgaging is the only option or next logical step, and the good news is that it is possible to remortgage your property 6 months into the term.

Remortgaging in the UK is not new, but statistics have shown that fewer remortgaging applications are accepted each year.

According to Statista, in October 2022, 51,000 remortgage applications were approved in the UK.

However, by November 2022, there were fewer approvals, with only 33,000 successful applications.

While remortgaging a property early is possible, it’s important to understand the process, know what to do, and consult a professional who can assist you throughout the application.

Below, we cover what lenders will expect from you, the process involved, and how to start the process.

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The 6-Month Rule

While most may believe remortgaging at 6 months isn’t possible, it is!

While not all lenders offer it as an option, some allow for remortgaging 6 months after you were registered as the property owner with the Land Registry office.

While it’s possible to remortgage at 6 months, you’ll have to consider how viable it is for your financial situation.

Exiting an existing mortgage to activate a new deal doesn’t come without costs.

On certain mortgages, such as fixed-rate or discounted-rate mortgages, you’ll be charged penalties if you exit the mortgage before a specified date.

There are scenarios where the cost to exit and remortgage is still a viable option.

The 6-month rule was set in place because homeowners achieving a mortgage of a certain percentage of their property value could increase their mortgages to 100% of the property value shortly after acquiring their mortgage.

The 6-month rule mitigates this.

Day 1 Remortgaging

There are scenarios where homeowners wish to remortgage their property from the moment they purchase it.

A day 1 remortgage applies to any property where an owner wants to remortgage it within the first 6 months of the existing mortgage.

It’s not common to find a lender offering day 1 remortgages, but Nationwide and Barclays offer them if the homeowner can comply with strict criteria.

Keep in mind that it can take the Land Registry up to 6 weeks to update the property records to reflect the new owner, which may delay the process of a day 1 remortgage.

If there’s no way you can wait and need to prove ownership of the property for a day 1 mortgage, your solicitor should be able to provide legal confirmation.

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Reasons to Remortgage as Early as at 6 Months

For many, remortgaging at 6 months may seem illogical, but life circumstances change, and for some, this may make the most sense.

Below are a few of the common reasons someone may want to remortgage a mortgage that’s only 6 months old.

• Additional funds are needed to pay off debt or renovate the home.
• One partner wants to buy another out of the mortgage.
• Homeowners wish to switch to a buy-to-let mortgage type.
• The owner wants to release equity in the property because their circumstances have changed.
• The current mortgage is variable-rate, and the owner is now faced with a sudden rate hike.
• The property has been renovated and now has a higher value that can be borrowed against.

The property is inherited, and remortgaging can help release needed funds.

Day 1 remortgaging is extremely tricky, 6 month remortgages are a little less tricky, and, of course, remortgaging after 6 months is simpler.

Related reading: 

• Reasons for remortgaging.
• Remortgaging to release equity.
• Remortgaging to buy another property.
• Remortgaging with bad credit.
• Remortgaging for home improvements.
• I own my house outright can I remortgage? 
• Capital raising mortgages.

Using a Broker to Remortgage

Remortgaging at 6 months doesn’t come without its challenges, and in most instances, the help of a professional mortgage advisor or broker is recommended.

Here’s what a broker can do for you:

Ensure that Land Registry has updated the property records since you bought it.

• Investigate your current mortgage deal for any penalties you’ll face when switching.
• Comparing all available mortgage deals to ensure that you apply for the best possible option.
• Detail all the costs involved in the remortgaging process so that you can budget accurately.
• Accessing your credit report and ensuring all the information is accurate and up to date.
• Management of all paperwork and processing.

Requirements to Remortgage Early

For the most part, remortgaging at 6 months follows a similar process to applying for your first mortgage, except you may need to provide further documents and details.

In addition to the usual documents, you’ll need to:

• Go through an audit trail of purchase.
• If you’re not listed as the property owner with the Land Registry yet, your solicitor must confirm that you’ve purchased the property.
• Confirmation of the property’s original purchase price via a completion statement.
• If renovations have been carried out, you’ll need to provide proof that the property value has increased through a valuation.

Common documents required during remortgaging also include:

• Proof of ID
• Proof of income
• Proof of residential address
• Credit check

Some lenders may ask for more information from you.

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Remortgaging 6 Months After a Property Purchase Conclusion

Several lenders in the UK will assist with early remortgaging if the conditions are correct, and you meet the strict criteria in place.

Working with a mortgage advisor is always recommended as it increases your chances of handling the application correctly and avoiding hiccups along the way.

Some mortgage providers known to allow early remortgaging include, but aren’t limited to, Nationwide Building Society, HSBC, Virgin Money, Barclays, and NatWest.

Keep in mind that not all lenders will approve all applications. Ensuring your application is correctly prepared is a step in the right direction.

Call us today on 01925 906 210 or contact us to speak to one of our friendly advisors.

According to the Office for National Statistics, 1.4 million homes in the United Kingdom face an increased interest rate when renewing their fixed-rate mortgage in 2023.

57% of mortgages in the UK that are up for renewal in 2023 were fixed at interest rates below 2%.

Let’s face it, mortgage rates are high, regardless of your mortgage type.

That said, Brits who have secured fixed-rate mortgages have had an easier road than others.

But what if you’ve been benefitting from a fixed-rate mortgage, and the term is ending?

When can you remortgage, and should you?

The simple answer is that it’s not that simple!

There are several things to consider when thinking of when or if to remortgage.

Below is an overview of what to expect when remortgaging before your fixed-rate term ends and how to proceed.

We cover everything from the pros and cons to what you’ll need to consider during the process for the best possible outcome.

Whether you’re remortgaging to access equity in your home or want a lower interest rate, you’ll need to understand the process to make an educated decision.

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What is a Fixed-Rate Mortgage?

If you’re the type of person, who likes to have your finances strictly planned, a fixed-rate mortgage is probably for you.

Such a mortgage lets you know precisely how much interest you’ll pay over time.

Fixed-rate mortgages have a set mortgage rate for 2 – 5 years or even longer.

This takes the “nasty surprise” element out of paying off a large loan.

When interest rates fluctuate, your mortgage payments will stay the same – that’s the peace of mind of a fixed-rate mortgage.

What Happens When You Exit Your Fixed Rate Mortgage Early?

If you’re considering an early exit from your fixed-rate mortgage so that you can remortgage your property earlier, you may find it difficult to find the information you need to make the right decision.

While a fixed-rate mortgage locks in your interest rates for the mortgage term, sometimes terminating the deal early can prove beneficial.

Let’s consider all the implications and factors below…

Reasons to Remortgage Early

Remortgaging early is a good idea for those who want to reduce their monthly instalments or even invest in a different property.

If you’ve found a better mortgage deal elsewhere, it might also inspire you to remortgage early.

If you happen to have a buy-to-let property and the value has increased, you may want to borrow against it to grow your portfolio by investing in another property.

Is Remortgaging Early on a Fixed-Rate Possible?

Remortgaging early on a fixed-rate mortgage is entirely possible.

One thing to keep in mind, however, is that remortgaging comes with added costs.

Your current lender may charge you an exit fee or impose an early repayment charge.

Before going ahead with any remortgaging plans, take the time to review your contract carefully.

Note all the costs and fees, especially those that apply to exiting your contract early.

If it’s too costly to remortgage, avoid putting yourself in a bad financial position.

Your unique financial situation will ultimately determine whether it’s a good idea for you to remortgage.

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Remortgaging on a 2-Year or 5-Year Fixed Contract

What remortgaging will cost you depends on how much time you have left on your fixed term.

If you’re on a 2-year fixed-rate mortgage near the end of the term, you may find the fee is higher than if there’s a longer timeframe.

For example, you could pay up to 2% of the total on a £150,000 mortgage if you choose to remortgage 6 months into the deal, which is a whopping £3,000.

Of course, each situation is different; this is just a basic example.

If you choose to finalise remortgaging before your 5-year fixed-rate mortgage is completed, you’ll experience a similar situation.

Your exit fee may be higher in the initial years and then reduce as time passes.

For example, if you have a 5-year fixed-term contract and choose to remortgage 6 months into the term and have a 5% interest agreement, you could pay as much as £7,500 on a £150,000 mortgage.

Related quick help remortgage guides: 

• Remortaging on maternity leave 
• How soon can I remortgage?
• Shared ownership remortgages
• How long does it take to remortgage?
• How to remortgage for an extension?

Expected Fees When Remortgaging

When remortgaging, there are fees you’ll need to consider.

These include:

• Exit fee: Ending your mortgage before the end of the term comes with a penalty. This is usually a fixed fee.
• Broker fees: When acquiring the services of a mortgage broker, you’ll be required to pay a fee for the service. While there’s a fee involved, using a mortgage broker is recommended and can save you headaches in the long run.
• Arrangement fees: This is a fee to set the mortgage in place. It can be paid as part of your monthly instalments, or in some instances; it’s paid as an upfront fee.
• Valuation fees: Mortgage providers will want an official valuation of your property. This can cost between £600 and £1,250. Some lenders offer it as a free service, but this often means you’re at the mercy of their service providers, which can take quite some time to provide the service.
• ERC – Early Repayment Charge: One of the biggest factors is the ERC which is the early repayment charge. This is calculated as a percentage of your outstanding balance. ERCs tend to be higher on shorter-term mortgages. Because of this, those who have a short-term fixed-rate mortgage typically choose to wait it out and only remortgage at the end of the term instead of earlier.

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Remortgaging with Your Existing Lender vs. New Lender

When you start thinking about remortgaging your home, you may wonder if it’s better to use your existing lender or apply for a new deal with a new lender.

Sometimes, sticking with your current mortgage provider makes sense because the process is expected to be easier.

Your current mortgage provider has all your particulars, and you could avoid additional remortgaging costs, such as legal fees and valuation charges.

Of course, every new deal – including remortgaging – is considered a new application, so you can expect affordability assessments and credit checks to take place even if you use your existing mortgage provider.

Of course, if your current mortgage provider isn’t meeting your expectations, and you think you can get a better interest rate or overall better deal elsewhere, you may want to look around for a new mortgage provider.

Take the time to scout around for the ideal service provider and consider using a broker.

Switching to a new lender may be beneficial, but always enquire about the associated costs, which can include broker fees, legal costs, establishment fees, and so on.

It’s worth asking if the new lender offers a digital mortgage, which can save on some of the expected fees.

How Soon Can You Remortgage Before Fixed Rate Ends? Conclusion

While you can exit your existing mortgage and remortgage before the term is up, it’s a good idea to consider all the options and do calculations to see how best you can save on costs.

With the help of a mortgage broker, you can avoid the additional costs often associated with remortgaging and exiting a mortgage early.

Call us today on 03330 906 030 or contact us to speak to one of our friendly advisors.

Are you on an interest-only mortgage and are considering switching to a repayment mortgage?

The process can be straightforward with the right planning and guidance, and most lenders will be happy to let you switch.

Here’s everything you need to know about switching to a repayment mortgage and why it may be right for you.

Why Switch To A Repayment Mortgage?

Switching from an interest-only mortgage can be the right move for various reasons.

These include:

• Easier mortgage management – With a repayment mortgage, you’ll have a clear plan on the amount you need to pay each month, making your debt more manageable.
• Less worry – An interest-only mortgage requires a solid repayment strategy to repay the borrowed capital in one lump sum at the end of the term. If it fails or circumstances change, you may have to sell your house to pay off the mortgage. With a repayment mortgage, you’ll reduce the balance monthly, so you don’t have to worry about a huge lump sum.
• Full ownership at the end of the term – With a repayment mortgage, you increase your equity in the property every month, and by the end of the term, you’ll own the property outright without selling your house or using other investments to pay the lump sum.
• Less Interest – Since you’re reducing the debt balance monthly with a repayment mortgage, you’ll pay less interest overall than an interest-only mortgage, where the balance remains the same throughout the mortgage term.

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Ways to Switch from An Interest Only Mortgage

You can switch to a repayment mortgage through various methods, and the right one for you will depend on your situation.

These include:

Remortgaging

You can remortgage and switch your repayment type with your existing or new lender.

Your lender may even allow you to keep the same deal and interest rate, or you can get a better deal with a new provider.

However, some lenders may not allow you to remortgage on interest-only, so you may need to shop around before your fixed-term ends.

Remortgaging usually requires a full application, so you must meet the lender’s eligibility criteria.

Product Transfer

You can also do a product transfer with your current provider and switch to a repayment mortgage.

It’s an easy option, but it may not be the most suitable choice, so it’s worth shopping around and comparing what your lender offers with what is available in the market.

A Part-to-Part Mortgage

If you can’t switch the entire mortgage to a repayment mortgage, you can try changing part of it with your current lender or a new one.

It’s usually a combination of interest-only and repayment that allows you to manage your monthly repayments easily while reducing the balance, so you don’t have a huge lump sum at the end of the interest-only term.

You can also increase the repayment portion of the loan when remortgaging to reduce your balance and long-term cost further.

Related quick help remortgage guides: 

• Remortaging on maternity leave 
• How soon can I remortgage?
• Shared ownership remortgages
• How long does it take to remortgage?
• How to remortgage for an extension?

How to Switch from Interest Only to Repayment Mortgage

You can switch to a repayment mortgage through the following steps;

Speak to Your Lender

Ask your current lender about their requirements and procedure for switching from an interest-only to a repayment mortgage.

Some providers have specific procedures, fees, or criteria you must meet before they allow you to switch.

They’ll likely check your affordability and require you to sign some documents to make the switch official.

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Contact a Mortgage Advisor or Broker

An independent mortgage advisor or broker can search the entire market for the best deals and tell you if switching with a different lender can save you money.

They can be useful if your current lender doesn’t allow you to switch, or they want you to take out a new mortgage instead of only switching the payment type.

Considerations when Switching

A few things you’ll want to consider when switching include:

Affordability

Your monthly repayments will likely increase after switching because you’ll start repaying a portion of the capital and interest instead of interest only.

You’ll need to review your current financial situation and determine whether you can afford the higher monthly payments or a repayment mortgage.

The lender will conduct some checks to determine your affordability, including looking at your income, expenses, and overall debt levels.

Your Current Deal

Depending on the terms of your current deal, your lender may not simply let you switch and may want you to take out a new mortgage instead.

This may force you to leave your current mortgage early, resulting in early repayment charges that can add up to thousands of pounds.

Credit Issues

If you’ve recently had a rough patch and are facing credit issues, switching to a new deal may be challenging, especially if the issues involve late mortgage payments.

The severity, recency, and type of credit issues may determine how difficult it is to switch, with issues like bankruptcy being more severe than a small CCJ.

Equity Amount

The property value can influence your equity in the property since the mortgage balance will be the same as when you took out the interest-only mortgage, which can influence your chances of switching.

You may find yourself in negative equity if the property has fallen in value, making it difficult to switch or remortgage.

However, if it has increased in value, you’ll be better positioned to switch and unlock better rates and terms.

Changes in Rates and Flexibility

You may end up with different rates after switching, which can be lowered or higher than your current mortgage rates.

When you switch, you’ll also have less flexibility to do what you want with your money in the short term, since you’re no longer saving on monthly repayments.

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Switching From An Interest Only To A Repayment Mortgage Final Thoughts

Changing to a repayment mortgage from an interest-only mortgage is usually straightforward.

It can allow easier mortgage management, less overall interest, full ownership at the end of the term, and less worry about paying the lump sum if your repayment strategy fails.

Consider all the factors and implications of switching and consult an independent mortgage advisor or broker who can ensure you get the best deal available.

Call us today on 01925 906 210 or contact us to speak to one of our friendly advisors.

In 2013, something exciting happened in Great Britain! The Help to Buy government loan scheme was proudly launched.

The scheme provides a great opportunity for first-time property buyers to get on the property ladder without putting too much additional stress on their budget.

How does it do that?

By offering successful applicants a 20% government loan, meaning that the buyer only needs to obtain a 75% mortgage and put down a 5% deposit.

The not-so-great news is that the Help to Buy scheme expired in March 2023, with new applications ceasing towards the end of 2022.

So now, if you’re on the scheme, you’ll find it challenging to remortgage your loan and have several boxes to check along the way, but that doesn’t mean it’s impossible.

I am on the Help to Buy Scheme – Can I Remortgage?

While on the Help to Buy scheme, you’ll be on a fixed rate for 2 to 5 years and can indeed remortgage, but you will find it hard to find a similar deal.

Switching to the lender’s Standard Viable Rate is the norm if you can’t find a new deal.

Unfortunately, this rate can be expensive as the interest rate is set solely by the lender, is typically higher than available deals and can fluctuate without much warning.

You must follow the correct process if you find a lender and switch.

The most important part is to make a Deed of Postponement to the scheme administrator.

A qualified mortgage broker is best to assist you with this.

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A bit of extra info: according to legal terms, a Deed of Postponement is a legal agreement that’s set in place between two lenders.

Its purpose emphasises each party’s rights and prioritises the lender holding the first charge.

Both lenders will still be paid, but only the first lender will be a priority.

Is Remortgaging a Wise Choice for Me?

Realistically speaking, only a few lenders offer Help to Buy remortgages, especially if you still need to pay off or reduce the 20% equity loan.

In addition, lenders may see you as a risky borrower because you have two loans on one property.

As a result, the deals made available to you come with higher fees and interest rates.

While this is all true, it’s also important to note that your lender’s Standard Viable Rate may still be more expensive than remortgaging.

If your property value decreases, you’ll find your options even harder to come by.

This is called “negative equity”, meaning that if you sell your property, it won’t cover the remaining balance of your outstanding mortgage.

So what should you do if you’re in negative equity? In most instances, mortgage brokers may advise waiting until the property prices increase again.

Remortgaging to Pay off the Help to Buy Loan

The 20% government loan portion must be correctly managed when you choose to remortgage. You will begin paying interest after being a property owner for 5 years.

There’s a risk to the lender offering remortgage loans, but if you’ve paid off the equity loan before remortgaging, you’ll find that your loan requests are viewed more favourably.

But what happens if you still need to pay off the equity of the loan?

The good news is that a few options are available to you, even though they’re a little trickier to come by and set in place.

When chatting with a mortgage broker, they may recommend one of the following courses of action for you to take:

1. Do Nothing – That Means You Keep the Entire Loan

Your current lender may be willing to strike a new deal with you, or you may want to seek out alternative options with a new lender.

Unfortunately, the costs of this may be higher than what you’re paying.

When you want to sell the property, you’ll still need to pay back the 20% equity, which is unfortunately based on the property’s value, meaning that the amount you have to pay back may be higher than you initially thought.

So while you can do nothing and continue as usual, you may find that your monthly costs climb as you’ll have new interest to pay.

2. Reduce the Government Loan to 10% Through Staircasing

One of the biggest downsides of the Help to Buy scheme is the 20% government portion of the loan that can increase when your property value increases.

This is why many people opt to staircase their loan. Staircasing is for shared ownership mortgage holders who want to pay off a larger portion of their property when they have the funds for it.

This means you could reduce your loan’s government portion from 20% to 10% by paying monthly instalments.

Many are attracted to this option because it means building additional equity in the property without increasing the monthly instalments too much.

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3. Repay the Loan in Full Through Remortgaging

Another possible route is to combine the property loan with the government loan and remortgage the amount to pay it in full.

This is a solution to the problem of the 20% government portion of the loan increasing along with your property value.

If you wish to sell the property, you won’t have a separate 20% loan to pay back, leaving you with 100% of the sale.

This is most often done when the property value has increased.

In such a scenario, you’ll use the accrued equity to pay off the equity loan, but it’s important to note that the monthly instalments will increase, and you’ll need to ensure you can afford those.

Remortgaging with Help to Buy Conclusion

If you’re worried about the increased interest impacting your budget, it’s important to decide what you will do as your Help to Buy scheme comes to an end.

Speaking with a qualified mortgage broker at least 60 days before your Help to Buy scheme ends is a step in the right direction.

Once you’re in touch with your broker, discuss the available options and make a decision that’s the most financially viable for you.

Ready to remortgage?

Whether you want remortgage to find a lower interest rate, or raise money for home improvements, we may be able to help you find a better rate.

Call us today on 01925 906 210 or contact us to speak to one of our friendly advisors.

Owning a property, or at least paying a property off, is a dream for many people in the UK.

If you’ve landed the mortgage required to buy the property of your dreams, you’ll undoubtedly be walking on air.

But there comes a time when remortgaging your property loan might make sense and the stress associated with it could knock the wind right out of your sails.

Remortgaging is done for several reasons, as follows:

• To get a better interest rate
• The value of the property has increased, and the owner wants equity released
• The property owner’s financial situation has changed, and they can afford to pay more of their loan off each month
• They want to use the additional funds for home improvement that will essentially increase the value of the property
• They’re in debt and need the additional funds for debt consolidation

Regardless of your reasons for remortgaging, there is a process to follow and hoops to jump through.

And because of this, many homeowners want to know if a solicitor is required when they decide to remortgage.

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Yes, You Need a Solicitor to Remortgage!

If you’re wondering if you need a solicitor to remortgage your property, the answer is a great resounding YES!

You won’t need a solicitor if you’re simply switching lenders, but if you’re remortgaging the entire loan, there’s more legal work involved, and a solicitor is required.

Remortgaging solicitors are referred to as Conveyancing Solicitors.

In addition to remortgaging, you can do more with a solicitor.

With the help of a solicitor, you can add an owner to your mortgage (ownership change), which requires legal documents to be generated.

You can also remove an owner and become the sole landlord. These changes require many boxes to be checked.

Keep in mind that remortgaging can take up to two months to process.

However, if you’re transitioning from one product to another with the same lender, some verification steps can be skipped, and the process can be completed quicker.

Should I Pay for a Conveyancing Solicitor or Use a Free Service?

Everyone wants to save money somehow, and it’s much the same regarding remortgaging, but saving money doesn’t always put you in the best position.

For example, many property owners are confronted with conveyancing solicitor costs and seek free services.

Many brokers and lenders offer free legal help packages, and while they’re alluring, they’re not always worth your while, especially in a scenario where time is of the essence.

When conveyancing services are offered for free, they’re usually basic services that are slow and laborious to complete.

If you want your remortgage handled quickly, efficiently, and professionally, paying for the help of a qualified conveyancing solicitor who will focus directly on your case is the best solution.

What Does a Conveyancing Solicitor Do for You?

In the UK, there are several boxes to check when remortgaging.

Your ID will need to be verified but it extends beyond that, too. Leasehold checks and bankruptcy checks also apply. Your solicitor will ensure that everything is taken care of.

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Of course, you’ll need to meet the criteria to qualify, and your mortgage solicitor can assist you by doing the following:

1. Get An Account Overview

The current state of your financial deal is important for new lenders to determine what type of risk you pose them.

Your solicitor will acquire an overview of your account from your current lender, featuring your latest balance, interest accrued, and penalties for exiting (this is called a redemption statement).

2. Be a Reliable Witness

All legal paperwork must be signed and checked.

Your final signature also needs to be witnessed. Your solicitor can serve as a reliable and trusted signature witness.

3. Manage the Finances

In the case of releasing equity, your solicitor will act as a legal manager of mortgage funds that are used to pay off the existing loan and then ensure that the balance of the funds is transferred to you.

Having a solicitor managing the finances ensures that the funds are directed as required, with no hiccups along the way.

4. Land Registry Checks and Updates

Your solicitor will do a Land Registry check to ensure that there’s nothing strange on the property deeds and that nothing has changed.

If there are any irregularities, your solicitor can assist with ensuring they’re sorted out as quickly as possible.

5. Review all Legal Contracts and Advise

You can expect your solicitor to read through the entire mortgage offer, indicating areas that need attention and explaining confusing fine print.

Mortgage terms can be confusing, and this service can save you the hassle of getting into a contract that’s unfair or confusing,

6. Land Registry Paperwork Filing

Once all the paperwork is done, your solicitor will file the remortgage paperwork with the Land Registry.

During this process, they will legally confirm that the previous mortgage is paid off and ensure that the property title is updated legally.

The Legal Cost of Remortgaging in the UK

There are several factors that impact the legal costs involved in remortgaging. In most instances, it could cost anything up to £1,500.

Factors that influence UK remortgage costs include:

• The cost of the new loan
• Property searches carried out by you and your lender
• How speedy lenders are with their paperwork
• Ownership transfers
• Whether you intend to buy out a co-owner

On top of the remortgaging fees, you’ll also have to pay conveyancing fees, Land Registry fees, bankruptcy search fees, and title copy fees as follows:

• Conveyancing – anything between £300 and £1,500
• Land Registry fees – anything between £20 and £910
• Bankruptcy searches – this costs £2 for a regular search and £3 for a priority search
• Title copy fees – an official title copy costs £12

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Do I Need a Solicitor to Remortgage My UK Property? Conclusion

Take the time to choose a remortgaging solicitor in the UK who has the experience, works on your side, and takes the time to ensure that you understand the process and fine print.

A remortgage is a financial decision that requires forethought, guidance, budgeting, and understanding.

Ready to remortgage?

Whether you want remortgage to find a lower interest rate, or raise money for home improvements, we may be able to help you find a better rate.

Call us today on 01925 906 210 or contact us to speak to one of our friendly advisors.

As your current mortgage deal draws to a close, you may get slightly anxious about switching to the lender’s SVR (Standard Variable Rate).

For most property owners, the SVR will be higher than the fixed mortgage rate or special deal they’ve been on, so remortgaging becomes the focus.

The trick is to note when your current UK mortgage deal will expire so that you can make your applications well in advance.

Remortgage deals UK typically take 4 to 8 weeks to process.

If you’re wondering if remortgaging is the best possible course of action, you’ll want to know more about the financial process before you start.

Below, you will see a step-by-step breakdown of how remortgages work in the UK.

Steps to Remortgaging Property in the UK

Step 1: Receive Fair Warning From Your Current Lender

If you’ve been on a two-year or five-year fixed rate, your lender will contact you in advance to give you fair warning of your upcoming expiry date.

This will give you sufficient time to prepare for the switch to the lender’s SVR.

If the SVR is more than your current rate, you will have time to start investigating other options and determine if remortgaging will save you any money or end up costing you more.

Step 2: Request a Redemption Statement

A redemption statement provides information on the remaining balance on your UK mortgage. This includes all fees and costs.

If you decide to remortgage, you must acquire this amount to pay off the existing loan.

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Step 3: Investigate and Repair Mortgage Brokers

Doing comparisons of lenders and their available UK mortgage deals will help you determine which deal is best for you.

Using a mortgage broker will simplify this process and help you find the best deal quicker.

Mortgage brokers have access to the entire scope of lenders able to assist you with remortgaging. Remember to ask your broker what their fees are before you get started.

Related reading: 

• Reasons for remortgaging.
• Remortgaging to release equity.
• Remortgaging to buy another property.
• Remortgaging with bad credit.
• Remortgaging for home improvements.
• I own my house outright can I remortgage? 
• Capital raising mortgages.

Step 4: Determine Which Mortgage Type is Right for You

You will find various types of mortgages you can remortgage with.

For instance, you could opt for an interest-only mortgage that often provides lower monthly instalments.

Or, you could opt for a regular repayment mortgage.

With multiple options available on the market, a mortgage advisor can explain the options available to you and help you to make a suitable choice.

Step 5: Acquire the Services of a Solicitor

If you’re staying with your existing lender, you’ll not require a solicitor.

But, if you’re switching to a new lender, a solicitor or conveyancer is required to handle the legal documents and ensure that the title of the property is correctly transferred.

Step 6: Prepare for the Eligibility Checks

You’ll need to undergo eligibility and affordability assessments.

Supporting documents must prepare in advance if you want the UK remortgaging process to run smoothly.

Both brokers and banks will request the following:

• Bank statements or payslips (the last 90 days)
• Your P60
• Proof of commissions and bonuses
• If you’re self-employed: last 3 years’ accounts
• Copies of your utility bills
• Records of any subscriptions you have
• Proof of address (that goes back for 3 consecutive years)
• Valid ID (you can use your driver’s license or passport)

Step 7: Obtain a Mortgage in Principle

Lenders will scrutinise your paperwork, and if all is in order, you will be issued a mortgage in principle.

This written statement doesn’t guarantee but indicates how much the lender will be willing to give you if your application is approved.

This can be used to estimate how much you can realistically borrow if you remortgage your UK property.

You will have some time to decide what you’ll do, but remember that a mortgage, in principle, will only be valid for 60 to 90 days (this is lender-dependent).

Step 8: Arrange a Property Valuation

To remortgage your UK property, the lender will want to know what your property is worth.

Some lenders provide property valuation as a free service but it’s a commonly known fact that free valuations can take some time to arrange and process.

That said, you can pay for your own valuation. Arrange this with the lender to ensure your application isn’t held up.

This survey can only be used to determine the monetary value of the property. It’s not a building condition survey.

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Step 9: Process Your Mortgage Application

If you have a mortgage in principle, you can use it to back your application. If you don’t have one, you will have to undergo an affordability assessment.

Prepare to be asked questions about your occupation, income, credit history, spending habits, available deposit and various other financial questions.

If you have good credit, your chances of being granted a remortgage loan are higher.

Step 10: Get Your Mortgage Offer & Assess It

Mortgage lenders will assess applications on individual merit, and if approved, they will send your solicitor and you an official letter offering you a mortgage.

This letter has an expiry date, so don’t leave it too long (most last around 6 months).

All the mortgage conditions will be detailed in your mortgage offer letter.

So go over the offer with a fine-tooth comb, carefully checking all the terms and conditions and your particulars.

Step 11: Instruct Your Solicitor to Pay Off the Mortgage and Register the New Mortgage with Land Registry

Your solicitor will need to be instructed to go ahead, draw down the funds from the new lender and pay off the old mortgage deal.

Once the old mortgage is paid off and the new mortgage is in place, it must be registered at Land Registry.

Your solicitor must handle the registration of your details for you. In most instances, the UK property title deeds are transferred to your new lender.

How to Remortgage a House in the UK Conclusion

Remortgaging property in the UK doesn’t have to be a confusing process.

With the help of a broker, you can simplify the process and ensure that you get your hands on the best possible mortgage deal on the UK market.

Ready to remortgage?

Whether you want remortgage to find a lower interest rate, or raise money for home improvements, we may be able to help you find a better rate.

Call us today on 01925 906 210 or contact us to speak to one of our friendly advisors.

Remortgaging is the process of obtaining a new mortgage to pay off your current one, allowing you to switch lenders or secure a better deal.

Many individuals consider remortgaging when their current mortgage rate is ending, they find cheaper rates with other lenders, or they plan to borrow against their property.

It is important to approach remortgaging with caution to avoid over-indebtedness or higher fees.

Taking the time to carefully navigate the process and seek advice from industry professionals is crucial to making a sound financial decision.

By reviewing the following overview, you can learn more about how remortgaging works and determine if it’s the right choice for you.

Determining the Right Time and Choice to Remortgage Your UK Mortgage

If your current mortgage deal is nearing its end or transitioning to a different rate, it’s a good idea to explore the latest mortgage offers.

This doesn’t commit you to a new deal but allows you to assess your options and potentially find the best deal available.

Many people find that the value of their UK property has increased since they first obtained their mortgage, which may make remortgaging beneficial.

Remortgaging can be used not only to reduce monthly costs but also to fund home renovations, repairs, or debt consolidation.

It’s important to note that a remortgage comes at a cost, so calculating if you can afford the additional monthly expenses is essential.

Whether you’re aiming to reduce costs, consolidate debt, or address a major life change that affects your current mortgage, remortgaging may provide a timely solution.

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Preparing to Remortgage Your UK Property

Unfortunately, remortgaging is not a quick process and typically takes around 1 to 2 months to complete.

Most lenders recommend consulting with their advisors to make informed decisions. Before deciding whether to remortgage, there are several factors to consider:

Penalties and Charges for Remortgaging: If your mortgage deal hasn’t reached its end, the cost of remortgaging could be significant due to exit and early repayment charges.

Reasons for Remortgaging: Think through the reasons behind your desire to remortgage.

Whether it’s to lower monthly costs or gain more flexibility to finalize your mortgage sooner, it’s important to evaluate your needs thoroughly.

Credit Score: Lenders will conduct a credit check when you apply to remortgage your property.

A poor credit score may limit your options or result in higher interest rates. Ensure that your credit score is accurate and check it meticulously for any discrepancies.

Realistic Borrowing Capacity: Changes to your mortgage will impact your budget, and you can only remortgage your property if you can borrow enough to cover the existing loan amount.

Consider your current budget, how you’ve managed your existing mortgage, and borrow realistically to avoid over-indebtedness.

Utilise mortgage calculators or consult with a mortgage advisor for assistance in estimating costs and allowable borrowing limits.

Steps to Remortgaging Your UK Property

Understanding the remortgaging process beforehand can help ensure a smooth experience.

Here are the key steps involved:

Step 1: Determine Lenders’ Assistance

Obtaining an Agreement in Principle (AiP) is a useful way to assess your eligibility for remortgaging.

You can obtain an AiP online, which indicates whether a lender can assist you and provides an estimate of the approved borrowing amount.

Step 2: Compile a List of Costs

Ensure that you can afford the process by considering the associated costs, including the application fee (e.g., booking fee, product fee, or arrangement fee), solicitor’s fee (for managing the mortgage transfer), and valuation fee (for assessing the property’s value).

Step 3: Process the New Mortgage Application

Once you have an AiP, you can apply to remortgage your UK property.

Collect all the required supporting documents and submit them correctly. Seeking assistance from a solicitor or property advisor can be beneficial during this stage.

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Step 4: Finalise the Deal

Similar to purchasing a new house in the UK, finalizing the deal involves transferring the property from one mortgage to the next.

A solicitor or conveyancer is necessary to facilitate this process.

While many lenders offer this service at no charge, opting for it may prolong the timeline.

Related reading: 

• Reasons for remortgaging.
• Remortgaging to release equity.
• Remortgaging to buy another property.
• Remortgaging with bad credit.
• Remortgaging for home improvements.
• I own my house outright can I remortgage? 
• Capital raising mortgages.

What is a Remortgage & How Does it Work Conclusion

Remortgaging your UK property requires a careful evaluation of your financial situation and property management.

It’s crucial to determine whether remortgaging makes viable and sound financial sense.

Consulting with a professional property advisor is the best way to ensure you’re making an informed decision.

Ready to remortgage?

Whether you want remortgage to find a lower interest rate, or raise money for home improvements, we may be able to help you find a better rate.

Call us today on 01925 906 210 or contact us to speak to one of our friendly advisors.

Fixed-rate mortgages make a lot of sense, especially for Brits who like the security of having an exact amount set aside each month to cover mortgage costs.

With a fixed mortgage, you’re given a set price that you pay each month.

It doesn’t fluctuate, and over time, you stand to benefit because the interest rate is fixed for the loan term, which is usually 2 – 5 years or in some cases, longer.

Of course, when the term of the fixed rate ends, you’ll go onto the SVR (Standard Variable Rate), which is usually higher.

Reasons to Remortgage a Fixed Rate Early

Most people are content to have a fixed rate and will stay with it for the entire term. You may, however, decide to remortgage early.

This could be because you’ve found other mortgage products offering a better rate than your current one, leading to lower monthly outlay.

Or perhaps you have a buy-to-let property with increasing value and you feel that borrowing more will help you pay for your next investment.

At this point, you’re probably wondering why anyone would want to remortgage and end their fixed-rate deal early.

After all, it’s providing security and saving you money, right?

The reality is that it’s not always true.

You may want to remortgage your fixed-rate UK mortgage early because:

• You’ve stumbled across a better deal and rates offered by another lender.
• Your buy-to-let property has increased in value, and if you remortgage, you could get the funds needed for your next investment.

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What Happens When You Remortgage a Fixed Rate Mortgage in the UK?

Many property owners don’t know if it’s possible or where to start.

And then the questions start reeling in your mind!

Is remortgaging a fixed rate mortgage wise?

Can you leave a fixed-rate mortgage early, and what are the consequences if you do?

What is the process involved when remortgaging a fixed-rate UK mortgage?

We’re here to answer these very questions about remortgaging a fixed rate mortgage early!

The Basics of Remortgaging Fixed Rate Mortgages Early

First, you need to know that remortgaging a fixed-rate mortgage early is entirely legal and viable.

You can leave your fixed-rate deal earlier than intended and start a new deal with an entirely new lender.

But should you?

There’s a harsh reality when remortgaging fixed-rate mortgages early; early repayment charges or exit fees.

Note that 2-year fixed deals incur lower costs than 5-year fixed deals.

Here’s what you need to understand about remortgaging 2-year and 5-year UK mortgages:

2-Year Fixed Rate Mortgages UK

When remortgaging a 2-year fixed-rate mortgage in the UK, you can expect to face an early repayment charge and exit fee.

The early repayment charge is usually calculated as a percentage of your time on your fixed-rate contract.

Therefore, if you only have a short time left on your contract, the charges/penalties will be lower than if you have a long time left.

5-Year Fixed Rate Mortgages UK

In most instances, 5-year fixed-rate mortgages in the UK incur an early repayment charge depending on how many years are left in the mortgage contract.

It usually looks like this but can vary from one lender to the next:

• Year 1: 5%
• Year 2: 4%
• Year 3: 3%
• Year 4: 2%
• Year 5: 1%

For example, if you borrow £200,000 and 6 months into the contract you wish to remortgage, you’ll pay an early payment charge or 5%, which comes to £10,000.

Important to note is that while you can remortgage a fixed-rate deal early, it’s not commonly done due to the costs and because fixed rates don’t run over long terms.

Related reading: 

• Reasons for remortgaging.
• Remortgaging to release equity.
• Remortgaging to buy another property.
• Remortgaging with bad credit.
• Remortgaging for home improvements.
• I own my house outright can I remortgage? 
• Capital raising mortgages.

The Cost of Remortgaging Early

The above are only some of you need to know about the fees and costs involved in remortgaging a fixed-rate mortgage in the UK early.

Certain fees that may apply to your deal are worth knowing about.

These are:

Valuation Fees

While some lenders offer valuations for free, in some instances, lenders will charge a valuation fee to determine the property’s true value.

So if your lender doesn’t offer it as a free service, it could cost you up to £1250.

Arrangement Costs

Some mortgage deals have an arrangement or establishment fee, a product fee.

In most instances, you can have the cost included in your total mortgage to pay it off monthly along with your mortgage costs.

Some lenders do allow you to pay this amount upfront.

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Early Repayment Charge (ERC)

This is a fee for ending the fixed-rate mortgage deal early and applies to remortgages in the initial period.

This is a percentage of the time left on the contract.

Exit Fees

Some lenders (not all) charge an exit fee for breaking the contract.

This is sometimes a flat rate or a percentage.

Broker Fees

Some brokers offer free services to home buyers while others don’t.

Always check if there will be a broker fee before you start applying for actioning your remortgage deal in the UK.

Steps to Remortgaging Your Fixed Rate Mortgage Deal UK

Step 1: Use comparison sites to find deals that suit your requirements.

Step 2: Contact remortgaging lenders and make enquiries about their rates.

Step 3: Contact your current lender and check if they will provide you with a better deal and what their penalties and charges are on early exits.

Step 4: Decide if remortgaging is right for your budget, and if it is, get in touch with a professional mortgage advisor to ensure that the process is efficiently and professionally managed.

Remortgaging with Your Existing Lender vs. a New Lender

If you want to remortgage your property to get a better rate and save money, you may wonder if it’s best to see what your existing lender has to offer or if you should look for a new lender.

In most instances, remortgaging with your existing lender is easier as there are fewer legal hoops to jump through, and the associated costs will be lower too.

The lender will also have all your details on file, making it quicker and easier to transition to your new deal.

That said, they will still carry out an affordability check which could influence the outcome of your application.

When remortgaging with a new lender, you may get better rates than your current lender, especially if you qualify for lower rates or the new lender is competitive.

But, essentially, you will start the entire process from scratch.

In such scenarios, it’s a good option to communicate with a professional mortgage advisor to help you secure a good deal and to ensure you’re not scuppered into a deal that takes advantage of you or isn’t best for your financial situation.

Remortgaging Early on a Fixed Rate Conclusion

Remortgaging fixed rate mortgage early is entirely possible but may not always be in your best interests. That said, it could get you a better rate.

It’s best to consult a mortgage advisor who can provide you with all the information required to make an educated decision.

Ready to remortgage?

Whether you want remortgage to find a lower interest rate, or raise money for home improvements, we may be able to help you find a better rate.

Call us today on 01925 906 210 or contact us to speak to one of our friendly advisors.

Remortgaging can be the right option if you’re coming to the end of your introductory or fixed-rate deal period and want to borrow more or save money by reducing monthly repayments.

If you’re wondering how much can I remortgage my house for, how much remortgage can I get UK, or how much can I borrow for remortgage, you’ve come to the right place.

You can easily use a remortgage UK calculator to see how much you can remortgage your house for, but there are various factors you need to consider.

Read on to learn more about how much you can borrow, how remortgaging works, when you should consider remortgaging, and the costs.

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How Much Remortgage Can I Get UK?

You can usually borrow the amount outstanding on your mortgage when remortgaging or more if you release the equity tied up in your property.

Lenders will consider various factors when deciding how much you can remortgage your house for, including:

Your Property Value

The current market value of your property will influence the amount you can remortgage your house for.

The lender will assess your property to ensure it’s worth what you say before approving you for a remortgage.

Generally, the higher the property value, the more you can borrow.

Personal Circumstances

The lender will look at your circumstances, like your income, monthly outgoings, and credit rating, to determine how much you can afford to borrow.

You’ll likely be able to borrow more if you have good credit and income with low monthly expenditures.

The Loan to Value (LTV) Ratio

The loan to value refers to the amount you want to borrow as a percentage of the property’s value.

Lenders apply different limits or maximum LTVs and usually offer better deals for borrowers with low LTVs in the 60% to 65% range.

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Should I Remortgage My House?

Remortgaging involves changing your current mortgage without changing your home, and you can do this with your current lender or a new one.

Remortgaging with your existing lender is usually called a product transfer, and it can make things easier and quicker and cut out the need for legal support.

Common reasons for remortgaging include:

A Better Deal

When your introductory or fixed-term deal ends, you move onto your lender’s standard variable rate (SVR), which is usually higher.

You can remortgage to avoid this higher rate, and nothing stops you from moving to a better deal and saving on interest costs.

You can start shopping around for a new deal around three to six months before your current deal ends.

Releasing Equity

The level of equity you own in the property will go up as you repay the mortgage and if the value of the property increases.

You can release this equity by remortgaging and get the cash you need for any number of needs, including home improvements and repairs, an extension, raising capital for a new car, motorbike, caravan or motorhome, school fees, medical or legal bills, or travel and holidays.

If you have significant equity, you can get enough to buy a second or holiday home or put down a deposit, buy land, or consolidate debt.

How Does the LTV Affect How Much I Can Borrow with A Remortgage?

Mortgage deals are usually based on a loan-to-value ratio, and the lower your LTV, the more equity you own, meaning you can borrow more.

For example, let’s assume you bought your house for £250,000 with a £200,000 mortgage, and the mortgage you owe has fallen to £180,000 due to repayments while the value of the property has increased to £300,000.

This means the equity you own in the property has increased from £50,000 to £120,000.

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You can remortgage for a more significant amount than you owe, such as £200,000, working out at a loan-to-value ratio of = (200,000/300,000 x 100) = 66%.

You’ll be borrowing at a lower LTV than when you first bought the house, gaining a cheaper mortgage rate and lower repayments while gaining £20,000 (£200,000 – £180,000) to spend however you like.

Releasing cash by remortgaging is suitable when you have significant equity in the property to ensure it doesn’t dramatically change your LTV.

Costs to Consider When Thinking About How Much You Can Remortgage Your House for

Early Repayment Charges (ERCs)

Lenders can charge ERCs if you’re remortgaging during your current mortgage’s tie-in or fixed period.

The ERC is usually a percentage of the outstanding balance and can be significant, so it may be better to wait until the initial period ends before you can remortgage.

Exit and Arrangement Fee

Some lenders can charge an exit fee as a separate item to the ERC to cover the administration costs of closing your account.

Most mortgages also charge an arrangement or product fee just to get the loan, which can be added to the loan or paid upfront.

It typically costs around £1,000, with low-interest rates attracting higher fees.

Legal Fees and Valuation

When remortgaging, a solicitor must remove the old lender and register the new one on the property deeds.

The lender will also require a property valuation to confirm the amount you can borrow.

A remortgage valuation can cost anywhere from £250 to £1,500, depending on the value and size of your property.

Some lenders may require you to pay for these fees, but incentives, where the new lender covers such costs, are now common as part of the remortgage deal.

Higher Monthly Payments

If you’re remortgaging to borrow more money, you’re increasing the size of your loan, which can lead to higher monthly payments depending on the deal.

You need to ensure you can afford the increased repayments to avoid missed payments and defaults that can risk the loss of your home.

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How Much Can I Remortgage My House For? Final Thoughts

If you’re wondering how much can I borrow for a remortgage, consider the property value, your circumstances, and the loan-to-value ratio.

Remortgaging can be an excellent way to save money on a better deal and release the cash tied up in your house.

Consulting a qualified broker specialising in remortgages can help you get the best possible deal for your situation.

Call us today on 01925 906 210 or contact us. One of our advisors can talk through all of your options with you.