Remortgage Advice for Changing Your Mortgage

If you're considering remortgaging, it's essential to weigh the pros and cons of changing your mortgage. For example, switching to a new mortgage can save you up to £1,500 per year on your interest payments, as seen in our section on "Remortgage Savings".

The decision to remortgage is often driven by changes in your financial situation or personal circumstances. This might include moving to a new home, getting married, or having children. We explore these scenarios in more detail in our section on "Life Events and Remortgaging".

Before making a decision, it's crucial to understand the different types of remortgage options available. You can choose from fixed-rate, variable-rate, or tracker mortgages, each with its own set of benefits and drawbacks. Our section on "Mortgage Types" breaks down the key differences between these options.

Expand your knowledge: Mortgage Refinance Advice

Remortgaging your house can be a great way to save money and secure your financial future. There are multiple reasons to do so, and I'll walk you through 7 key ones.

You can remortgage to lower your monthly mortgage payments, which can be a huge relief for your wallet.

Remortgaging can also give you the opportunity to switch to a better interest rate, which can save you thousands of dollars over the life of your loan.

There are 7 reasons to remortgage, and it's worth considering them all to see if it's right for you.

You can use the equity in your home to fund major purchases, like a new car or home renovations, without having to take out another loan.

Remortgaging can also help you consolidate debt, making it easier to manage your finances and pay off high-interest loans.

It's essential to weigh the pros and cons of remortgaging carefully, as it can have a significant impact on your financial situation.

You can also use a remortgage to release some of the equity in your home to fund your children's education or other big expenses.

Curious to learn more? Check out: Housing Loan Advice

Remortgaging can save you hundreds or even thousands of pounds a year by switching to a better interest rate.

If you took out your mortgage during a time of high interest rates and the economy has improved since, current interest rates could be significantly better than the ones you are paying.

You can release some equity in your home by remortgaging, which can be a great way to access cash for home improvements or other expenses.

Better deals may also be available because your property has increased in value, allowing you to improve your existing rate through a remortgage.

Lowering your monthly repayments is another great reason to remortgage, and our team of experts at Clifton Private Finance can help you find the best deals.

Worth a look: First Direct Remortgage Rates

Getting a remortgage can take a few months. It's a major financial commitment and change, so it's essential to give it the respect it deserves to get the best deal.

Working with a specialist advisor, like a team of experts, will give you the best opportunity to get a worthwhile deal on your remortgage. This can make a significant difference in the long run.

You'll need a conveyancer to undertake the process of remortgaging, as it's a legal contract. This is a crucial step, and it's essential to get it right.

Life is full of changes, and your mortgage is no exception. Most people experience a change during their lifetime, whether it's a change in relationship status, a move to a different job, or anything else.

These large life changes can have a significant impact on your financial situation. Your personal circumstances have changed, and it's essential to re-evaluate your mortgage to see how it can be improved.

Fees, insufficient income, and relationship changes are just a few reasons why you might want to reassess your mortgage. If you're unsure where to start, consider the following:

If you're looking to raise some money against your house, you might be considering a remortgage. This can be a great way to free up some cash, but it's essential to understand the risks and whether you can afford the increased repayments.

Our expert mortgage advisors can help you navigate the process and find the most suitable rates for your personal situation. We compare the whole market, of thousands of mortgages, to get you the best offer.

Evaluating the viability of a remortgage is a crucial first step in the process. It's essential to consider your current mortgage interest rate, which can impact your decision.

Your current mortgage interest rate is a key factor in determining whether remortgaging is right for you. If you're on a fixed or discounted term, you'll need to consider the time remaining before your rate changes.

The time remaining on any fixed or discounted term can also affect your decision. For example, if you're close to the end of a fixed rate period, it may be beneficial to remortgage to take advantage of a lower rate.

Your current lender's listed mortgage rates in the market are also crucial to consider. You should compare these rates to your current interest rate to see if remortgaging could save you money.

Any fees or penalties you may have to pay to your current lender for leaving the mortgage at this time should be taken into account. These fees can add up quickly and impact your decision.

You might enjoy: Remortgage Solicitor Fees

Your expected property value is another important factor to consider. If the value of your property has increased, you may be able to remortgage to release some of that equity.

Here are the key factors to consider when evaluating the viability of a remortgage:

Defining your goals is a crucial step in the remortgaging process.

You need to understand why you want to remortgage, whether it's to improve your mortgage rate, take out equity as capital, or avoid being put on the lender's variable base rate when your fixed rate comes to an end.

Improving your mortgage rate can save you money on interest payments, but it's essential to consider the costs of remortgaging, such as arrangement fees.

Taking out equity as capital can provide you with a lump sum for home improvements, debt consolidation, or other financial goals, but be aware that this will increase your mortgage balance.

Avoiding the lender's variable base rate can give you more control over your payments, but it's crucial to review your options carefully to ensure you're making the best decision for your situation.

See what others are reading: Equity Release Advice

To prepare for the remortgage process, you'll need to gather various documents. Your lender will want to see three months' bank statements, payslips, or both, especially if you're self-employed, where they'll also want to see your last three years' accounts.

Having documents ready in advance will help speed up the remortgage process. You should also have utility bills, credit card statements, and address details for the last three years. Additionally, be prepared to share your ID, such as a driving license or passport.

You'll also need to provide records of regular outgoings, like subscriptions, and proof of any bonuses or commission. Don't forget to gather your P60.

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

A lender issues a mortgage in principle, which is a written indication of how much they might be prepared to lend. This is a useful indicator of what you may be able to borrow, but it's not a mortgage offer and it's not binding.

The lender will give you a mortgage in principle if they're happy with your documents. This can be a great way to get an idea of how much you can borrow and to start looking for a new home.

Choosing the right type of mortgage is crucial when remortgaging. You have two main options: repayment or interest-only mortgages.

A repayment mortgage is a good choice if you want to pay off the loan and own your home outright. This type of mortgage has higher monthly repayments, but you'll be paying off the capital amount over time.

Interest-only mortgages have lower monthly repayments, but you'll need a way of repaying the loan at the end of the mortgage term. This can be a challenge, but it's a good option if you're looking to free up some cash or reduce your monthly payments.

Before making a decision, consider your financial situation and goals. Ask yourself, "Can I afford the higher monthly repayments of a repayment mortgage?" or "Do I have a plan to repay the loan at the end of the mortgage term?"

Ultimately, the choice between a repayment and interest-only mortgage depends on your individual circumstances. It's essential to weigh the pros and cons of each option and consider seeking advice from a mortgage expert.

A fresh viewpoint: Consolidation Loan Advice

At Clifton Private Finance, we specialise in mortgages of all types, including remortgage deals. Our team of experts spend all day, every day, working in the UK mortgage landscape to build relationships with lenders and discover the best deals.

Discussing your options with your mortgage advisor is the best next step, especially when your fixed rate is soon to end. We can help you evaluate the marketplace and find the deals that are most suitable for you.

Our goal is to develop long-term relationships with borrowers, just as we would with family and friends. We take the time to understand your requirements, find a way forward, and stay the course until your mortgage is offered and the transaction has completed.

Now that you've evaluated your options and defined your goals, it's time to take the next step. This is where Clifton Private Finance comes in.

Discussing your options with a mortgage advisor from Clifton Private Finance is the best next step to help you find the most suitable deals for your remortgage. They can help you evaluate the marketplace and find the deals that are most suitable for you.

At this stage, you'll have a good indication of your remortgage viability and be ready to move forward.

At Clifton Private Finance, you'll find a team of experts who spend all day, every day, working in the UK mortgage landscape to build relationships with lenders and discover the best deals.

We specialise in mortgages of all types, including remortgage deals. Our team of experts will help you evaluate the marketplace and find the deals that are most suitable for you.

Whether you're looking to remortgage because your fixed rate is soon to end, you want to release some equity in your home, or you're looking to lower your monthly repayments, we can help.

You'll have a good indication of your remortgage viability and be ready to move forward after discussing your options with your mortgage advisor.

At Clifton Private Finance, we take the time to understand your specific needs and circumstances. Our team of experts has built relationships with lenders to discover the best deals and bring that expertise to you.

We specialise in mortgages of all types, including remortgage deals, and can help you whether you're looking to remortgage because your fixed rate is soon to end, you want to release some equity in your home, or you're looking to lower your monthly repayments.

To ensure you're making an informed decision, it's essential to evaluate the viability of a remortgage. This involves considering factors such as your current mortgage interest rate, the time remaining on any fixed or discounted term, and the listed mortgage rates in the current market.

You should also consider any fees or penalties you may have to pay to your current lender for leaving the mortgage at this time, as well as your expected property value and status as a borrower (credit rating, income, debts).

There are many reasons to remortgage, including:

As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments. Think carefully before securing other debts against your home.

Intriguing read: Remortgage for Home Improvements

Remortgaging can be a costly process, but understanding the costs upfront can help you make an informed decision. Early repayment charges can be a major hurdle, especially if you're leaving a fixed rate term. These charges are typically calculated as a percentage of the outstanding balance, and can be costly enough to put you off the whole deal.

You should also consider exit fees, which are administrative fees for closing your mortgage account and transferring the legal paperwork. These fees are typically between £50 and £300. Additionally, you may need to pay an arrangement fee, which is charged by the new mortgage provider and is similar to the arrangement fee you would have paid on your first mortgage.

To give you a better idea of the costs involved, here are some common remortgaging costs to consider:

It's essential to carefully consider these costs and weigh them against the potential savings of a remortgage.

A period of poor credit can put the brakes on any loan application, including remortgages. It's a common misconception that a good income is all you need to qualify for a remortgage, but lenders also consider your credit history.

Inflation will have done its thing, and what was good enough a few years ago may no longer meet lenders' criteria. This can be a surprise to those who have seen their income stay the same.

Greater debt obligations can also be a barrier to remortgaging. If your debt has increased since your first mortgage, lenders will assess you differently.

A drop in property value can make a remortgage difficult, especially if you've ended up in a position of negative equity. It's worth discussing your circumstances with experts to see how they can help.

Having a second charge mortgage can affect your ability to obtain a remortgage. Consolidating your debts in this way might be a better option.

If you're close to retirement age, standard remortgage options may be out of reach. It's essential to explore alternative options, such as retirement interest-only mortgages (RIOs) or lifetime mortgages.

Obtaining a remortgage can come with a range of costs that you need to factor in. Early repayment charges (ERCs) are a major consideration, as they can be steep, especially during fixed rate terms.

ERCs are typically calculated as a percentage of the outstanding balance, with different rates depending on the time left on any fixed term. This can make it worth waiting until the end of your fixed rate term before remortgaging.

An exit fee is a relatively small administrative fee, usually between £50 and £300, that occurs when you leave one mortgage provider for another.

The new mortgage provider will also charge an arrangement fee, similar to the one you paid on your first mortgage.

A valuation fee may be charged by the lender for undertaking the property valuation, although some lenders offer this service for free.

You'll also need to factor in legal fees, which can be covered by the lender or a conveyancer, depending on the provider you choose.

Here's a breakdown of the typical costs associated with remortgaging:

Remortgaging can be a complex process, and it's essential to consider the pros and cons before making a decision. One-third of mortgages in the UK are actually remortgages, so it's not uncommon for people to choose this option.

It's crucial to consider your current deal and whether it's about to end. Many mortgage deals only last two to five years, and if your lender puts you on its standard variable rate (SVR) after that, you could find a cheaper rate elsewhere.

You should also think about whether you want a better rate. Despite having to pay a repayment charge and an exit fee, you could still make huge savings. At the right time, a remortgage can be a valuable option.

However, there are some situations where a remortgage might not be the best choice. If there's a large early repayment charge, it might not be financially viable to leave before the incentive period ends. Similarly, if your mortgage debt is small, the fees might outweigh the benefits.

Another factor to consider is the value of your home. If it's dropped in value, you could be in negative equity, meaning you owe more than the value of your home. This could make a remortgage a riskier option.

Here are some key considerations to keep in mind:

And here are some situations to avoid:

To get started, you'll need to find a mortgage broker and a solicitor who can guide you through the remortgage process.

A mortgage broker can help you compare different deals from various lenders and find the best one for your needs. They can also provide valuable advice on the types of mortgages available.

Your mortgage broker will ask you about your income, expenses, and credit history to determine how much you can borrow. This information will help them find the most suitable mortgage options for you.

A good mortgage broker will also have a panel of lenders to choose from, which means they can offer you a wider range of deals.

The solicitor you choose will handle the legal aspects of your remortgage, such as reviewing your mortgage deed and ensuring all the necessary paperwork is completed.

A remortgage is a legal contract, so you'll need a conveyancer to undertake the process. This is a crucial step to ensure everything runs smoothly.

Unlike a first mortgage, there are fewer legal steps involved in a remortgage, but it's still a significant process. You'll need a solicitor to guide you through it.

Your solicitor will draw down the mortgage funds from the new lender and use them to pay off the old mortgage. This is a key part of the remortgaging process, and it's essential to get it right.

See what others are reading: Do I Need a Solicitor to Remortgage

Your current lender will contact you well in advance of the expiry date of your introductory deal, such as a two or five-year fixed rate.

This is usually done to inform you that you'll be reverting to the Standard Variable Rate (SVR), which tends to be higher than your current rate of interest.

You'll have the opportunity to investigate whether you can save money by remortgaging at this point.

Assuming the SVR is indeed higher than your current rate, it's time to start looking into your options.

A good place to start is by reading the unbiased guide to remortgaging and our article on how long it takes to remortgage.

Remortgaging is a legal contract that requires fewer steps than buying a house, but still needs a conveyancer to undertake the process.

You'll need to instruct a solicitor or conveyancer if you're changing lenders, as they'll sort out the necessary paperwork, including drawing up and signing the mortgage deed and transferring the title of the property.

A solicitor will draw down mortgage funds from the new lender and use it to pay off the old mortgage, making the process smoother.

The solicitor will then register the mortgage holder's details with the Land Registry, and if applicable, transfer the title deeds to the new lender.

In most cases, your current lender will contact you before your introductory deal expires, so you can investigate whether remortgaging can save you money by switching to a better interest rate.

You can find more information on remortgaging by reading the Unbiased guide to remortgaging and our article on how long it takes to remortgage.

You can release some equity by borrowing more money to make renovations or add an extension to your house. This can be a great way to make the most of the money you've already invested in your property.

If you have significant debt outside the mortgage, it can be sensible to leverage the equity in your property to consolidate all that debt into one, the remortgage. This can help you pair down your debt burden and take advantage of the preferential rates that a mortgage offers.

You might enjoy: Advice Borrowing Money to Pay for College.

A remortgage can provide that extra capital you need to make significant purchases. You can use the money to spend on things other than your property, such as a car or a vacation.

You can also use a remortgage to raise money against your house to carry out home improvements and increase the value of your property.

Here are some common reasons to remortgage:

It's essential to consider the risks of additional borrowing and whether you can afford the increased repayments before remortgaging.

If you're planning to rent out your property or vice versa, you'll need to change your mortgage accordingly. This can be done through a let-to-buy mortgage or by directly remortgaging as a buy-to-let.

You can reassess your plans for your property with a remortgage, which gives you the power to switch from a buy-to-let to a residential mortgage, or vice versa.

Getting a valuation is a crucial step in the remortgaging process. It's essential to determine the current market value of your property, which will help you and your lender make informed decisions. You can get a free valuation from a lender, ask an estate agent for their valuation, or pay for an independent valuation.

A valuation will reveal any problems with your property that the lender will discover anyway. So, it's better to be open and honest about any issues, rather than trying to cover them up. This will save you time and stress in the long run.

You should consider factors like your current mortgage interest rate, the time remaining on any fixed or discounted term, and the listed mortgage rates in the current market. These will all impact your ability to remortgage and get a good deal.

Here are some key factors to consider when evaluating your property's valuation:

You can switch from renting out your property to living in it, or vice versa, through a remortgage. This allows you to reassess your plans for your property.

You can use a let-to-buy mortgage or directly remortgage to change your mortgage type. This is a common way for people to switch from a buy-to-let mortgage to a residential mortgage.

If you've been letting out your property and now want to live in it, you can use a remortgage to change your previous buy-to-let mortgage. This will give you the right mortgage type for living in your property.

A remortgage gives you the power to reassess your plans for your property, whether you're switching from renting to living or vice versa.