A Step-by-Step Guide to Remortgaging My House

Remortgaging your house can be a complex process, but breaking it down into manageable steps can make it feel more achievable. The first step is to decide whether remortgaging is right for you, and to consider your current financial situation.

You can start by reviewing your current mortgage deal, including the interest rate, repayment terms, and any penalties for early repayment. According to the article, the average UK homeowner saves around £1,000 per year by switching to a better mortgage deal.

Next, you'll need to check your credit score to see how it affects your mortgage options. A good credit score can help you secure a better interest rate, while a poor credit score may limit your choices.

Before applying for remortgage, it's essential to gather all necessary documents, including proof of income, employment history, and property valuation. This will help you make an informed decision and ensure a smooth application process.

Before you start the remortgaging process, it's essential to get a few things in order. You'll need to contact your current mortgage lender to get a redemption statement, which confirms the total amount you need to repay.

This statement must be less than 12 working days old when you submit it as part of the application process. If it's older than this, you'll need to get a new one from your lender.

You can remortgage at any time, but be aware that an early repayment charge may be payable if your mortgage is still in its initial discount period. This can be a significant cost, sometimes running into thousands of pounds.

Before you remortgage, find out if an early repayment charge applies, how much it is, and when you won't need to pay it. This will help you work out the best timing for your remortgage.

The better your credit score, the easier it is to find good mortgage deals. The worse your score, the fewer options you'll have and the more you could pay in interest and fees.

If you have bad credit, there are lenders that specialise in helping people who struggle to get a mortgage from mainstream lenders.

Before you start the remortgage process, you'll need to gather some essential documents and information. You'll need to contact your current mortgage lender to get a redemption statement, which confirms the total amount you need to repay.

This statement must be less than 12 working days old, so be sure to get it in time. If it's older than 12 working days, you'll need to get a new one.

You'll also need to provide your conveyancer's details on the application form.

Research is key when it comes to finding the right remortgage deal for you. Start by comparing remortgage deals offered by different lenders at least six months before your current deal is due to end.

This will give you a good idea of what's available in the market and help you make an informed decision. Generally, you'll want to shop around to find the best deal for your needs.

To get started, check your credit score and see if you can reduce your loan-to-value ratio by paying down your mortgage. This can help you access better remortgage options.

Here are some key things to keep in mind as you research and plan your remortgage:

By doing your research and planning ahead, you can find a remortgage deal that's tailored to your needs and budget.

Do your research and you'll be in a much stronger position to get a good remortgage deal. Research your options by comparing remortgage deals offered by different lenders, and start this process around six months before your current deal is due to end.

You should also ask your current lender what rates they can offer and whether you can switch to a new mortgage rate with them before looking elsewhere. This will give you a better understanding of what's available and what you're working with.

Having a good credit score can also help you access better remortgage options, so checking your credit score is a good idea. You can do this by contacting the usual agencies: Experian, Equifax, and TransUnion.

Reducing your loan-to-value is another key factor in getting the best remortgage rates. If you have a smaller mortgage amount compared to the overall value of your property, you'll be in a better position to secure a good deal.

Here are some key things to consider when researching your remortgage options:

By doing your research and taking these factors into account, you'll be well on your way to getting a good remortgage deal.

To get a home valuation, you'll need to know the market value of your home. This is used to check your Loan to Value ratio (LTV) to confirm you can afford the new repayments.

A surveyor's valuation is required to determine the market value of your home. If your home is in London, your limit will be lower than in other areas.

You'll need to tell us about anything that may affect the value of your home before contacting a surveyor. This could be things like external cladding, breaches of planning permission, or building regulations that impact your property's value.

A desktop valuation report can be obtained without visiting the property in person. This report is made within 2 weeks of the expiry date of the original valuation report.

Here are the requirements for a desktop valuation report:

This valuation is valid for 3 months from the date it is produced, and we need to receive it within 5 working days of the date it was issued.

You'll need to factor in remortgaging costs, which can include arrangement fees for getting the remortgage, legal fees for using a conveyancing solicitor, valuation fees for the property, and admin or account fees for setting up the new mortgage.

Remortgaging costs can also include early repayment charges if you're exiting a deal before it's due to end, or exit fees, or a closure fee, for transferring the loan to a new lender.

The costs involved in remortgaging may outweigh the benefits, so it's essential to calculate your new mortgage repayments to see if it's financially worthwhile.

Here are some common costs to consider:

Be sure to ask for a breakdown of your lender's charges, and check that they are not more than £2000.

When deciding how much house you can afford, it's essential to consider your current mortgage and potential costs of remortgaging. You may need to pay booking or completion fees charged by a new lender, conveyancing costs, property valuation costs, and early repayment charges (ERC) or exit fees charged by your current lender.

To get an idea of how much you can borrow, use a mortgage comparison tool to compare mortgage deals from across the market. This can help you find a suitable mortgage and estimate your new repayments.

Your loan to value ratio is a crucial factor in determining how much you can borrow. This is the difference between the value of your home and the amount of money you're borrowing to pay for it, shown as a percentage. You can use a mortgage calculator to get an indication of how much you could borrow in minutes.

Your loan to value limit is usually 75% of the value of your home, unless you're repaying part of your equity loan. This means that if your home is valued at £200,000, your loan to value limit would normally be 75% of £200,000.

Here's a breakdown of the maximum loan to value limits based on the percentage of your equity loan you're repaying:

If you're considering an equity loan, you'll need to decide what percentage of the loan you're repaying. Any part payment must be at least 10% of the market value of your home, and you cannot leave less than 5% of the market value amount to repay.

You can use a mortgage comparison tool to compare mortgage deals from across the market. This will help you find the best option for your individual situation.

To get started, you need to know what you're looking for in a mortgage. The lowest interest rate may not always be the best option, so it's essential to consider your specific needs.

For example, you might find that a more flexible mortgage with a higher interest rate is better suited for you. This could be because you want to easily exit the mortgage or have more control over your payments.

Here are some key things to consider when comparing mortgage deals:

You can get an indication of how much you could borrow and compare rates in minutes using a mortgage calculator. This will give you a clear idea of what you can expect from different mortgage deals.

Remember, it's always a good idea to speak to a mortgage professional if you're unsure about your options. They can help you understand your choices and find the best mortgage for your situation.

Factor in costs when considering a remortgage. These can include arrangement fees, legal fees, valuation fees, admin or account fees, early repayment charges, and exit fees.

Arrangement fees can vary depending on the lender, but it's essential to factor them into your calculations. Legal fees for conveyancing can also add up, so be sure to budget for them.

A property valuation may be required, which can cost around £150 to £300. Admin or account fees for setting up the new mortgage can also be a consideration.

Early repayment charges can be a significant cost, especially if you're exiting a deal before it's due to end. Exit fees, or closure fees, for transferring the loan to a new lender can also apply.

Here's a breakdown of some common costs to consider:

Remember to ask your lender for a breakdown of their fees, and check that they are not more than £2,000. This will help you make a more informed decision about your remortgage.

Your new mortgage lender must be a qualifying lending institution, which is a requirement to ensure you're protected.

Most banks and building societies meet this criteria, but it's always a good idea to double-check.

To verify your lender's qualifications, you can check if they're authorised by the Financial Conduct Authority (FCA).

A fresh credit check and property valuation may not be needed if you're staying with your existing lender, which can be a relief.

You can also ask your conveyancer to confirm your lender's qualifications, as they'll be familiar with the process.

A 2-year fixed mortgage can be a good option if you expect to sell your home or switch to a different mortgage product within that timeframe, but keep in mind that you'll be paying a premium for the shorter term.

The pros of a 2-year fixed mortgage include lower interest rates compared to longer-term mortgages, which can save you money on interest payments.

With a 5-year fixed mortgage, you'll have a longer period to benefit from lower monthly payments, but you'll also be locked into a higher interest rate for the full term.

You'll need to weigh the pros and cons of each option carefully, considering your financial situation and plans for the future.

Before you start the remortgaging process, you'll need to prepare your application. This means getting all the necessary documents and information ready.

You'll need to contact your current mortgage lender to get a redemption statement, which confirms the total amount you need to repay and that the total on your repayment mortgage hasn't increased. This statement must be less than 12 working days old when submitted.

Having your recent financial information on hand will make the application process smoother. This includes payslips from the last three months, tax returns from the last few years if you're self-employed, and bank statements from the last three years and your latest P60 tax form.

If you're applying for a joint remortgage, you'll need to provide this information for both of you. You'll also need to show proof of ID and address.

Here's a list of the documents you'll typically need:

Having all these documents ready will save you time and hassle during the application process.