Looking for a
remortgage?

There are times when we wouldn’t recommend remortgaging.

Here are some reasons why you might not want to remortgage right now:

• Your mortgage debt is small – once your loan falls below a certain amount, it often isn’t worth switching lenders. The smaller your mortgage debt is, the worse the effect of any fees you’ll need to pay. You may find that it makes sense to stay on a rate with a higher interest rate.

• You’re stuck with high early repayment charges – hefty repayment charges can mean that it won’t always be cost effective to switch to a better rate. If it will cost an arm and a leg to move away from your current rate, just make sure you’re ready to switch as soon as your rate is nearly finished. There are other options we may be able to help you with to raise additional capital, such as a further advance or secured loan to avoid these charges.

• You’ve had a change in financial circumstances – if you have stopped working or become self-employed, lenders are unlikely to offer you a better rate. Remember that you’ll need to provide evidence of your earnings, too.

• Your home has dropped in value – in this situation, it’s often best to wait it out, and make overpayments whenever you can. Chances are, prices in your area may go up again soon.

Although it’s always a wise idea to keep up to date with the most competitive mortgage deals, the general advice is to consider remortgaging around three to six months before your current mortgage term is going to expire.

This provides you with sufficient time to start looking for a new lender or deal and ensures you have it all planned to go ahead before you revert to your existing lenders standard variable rate (SVR).

In general, a remortgage application will take between 1 to 2 months from start to finish.

However, the timeline can be impacted in the event that you want to borrow more.

If your circumstances haven’t changed and you simply want a better deal on your current property, then you will be looking to move ahead relatively quickly.

Absolutely. It is important to remember that some “blotches” on your credit report carry more weight than others and it’s still possible for you to remortgage with bad credit.

Lenders are more likely to be lenient if you missed a bill payment a couple of years ago, with a good explanation.

On the other hand, if you’ve recently missed more than one mortgage payment in a row, lenders may be less likely to believe that you’re able to keep to your repayment schedule.

Luckily, each lender has different criteria for assessing your credit score. In fact, you might be pleased to know that some lenders don’t actually credit score at all.

This means that even if your current mortgage provider may not offer you a new rate, another lender out there might. It’s all about finding the right lender for you.

Yes, it’s quite possible to remortgage with a new lender.

As long as you’re not on a current deal, then you won’t have to pay any early termination/other associated fees.

However, if your mortgage term has expired or is about to expire, you can decide to go with a new ender with no extra fees.

It depends on the terms and conditions of your current mortgage and if you terminate your existing mortgage before the fixed period you will typically have to pay an early repayment charge.

This can mean that it’s often not financially wise to remortgage before the introductory period comes to an end.

However, bear in mind that it’s advised that you start looking for a remortgage around three to six months before your current deal is due to expire.

This depends on the lender. Often, if you plan on remortgaging with your existing lender they do not always require your property to be revalued.

However, if you plan on remortgaging with a new lender, then a new house valuation is typically required as part of the process.

No you do not need a solicitor, however, many people opt for a solicitor to handle the transfer of the deeds from the old to the new lender.

Typically, mortgage deals include the cost of a solicitor, so this should be something covered by your new lender.

A remortgage is the process of switching your current mortgage, either by changing it to a new lender of by changing the mortgage deal you have with your existing lender.

Check our complete guide on how the remortgaging process works here.

The main cost to factor in remortgaging is the interest rate the lender offers, which is mainly based on your credit history and the loan-to-value ratio.

If you are considering remortgaging, it’s important to be aware of the potential fees involved, these typically include the following:

• Arrangement fees – The majority of mortgages have arrangement fees and these typically range from a few hundred to a few of thousand pounds.

• Legal fees – In some cases you may need to pay for a solicitor to handle legal issues if you want to remortgage with a different lender.

• Admin fees –  The lender might charge for the cost of setting up your remortgage.

• Valuation –  You may have to have your property revalued so the lender can see its current market value and to determine the loan-to-value ratio.

Check out our mortgage rate history guide and our mortgage interest forecasting for the next 5 years here.

Mortgage lenders will typically request to see the following:

• Your last three months’ bank statement

• Your last three months’ pay slips

• Your last two to three years’ accounts/tax returns if self-employed

• Your latest P60 tax form (showing income and tax paid from each tax year)

• Passport or driving licence