Remortgage

What is remortgaging?

Remortgaging simply put means replacing your mortgage with a new one, usually with a new lender in order to secure a better interest rate and save money.

You can also remortgage to borrow more money, whether it is for home improvements, a new car, holidays or pay off existing debts. Your Mortgage Ghai will talk through your circumstances and provide advice on the best way forward as borrowing more may not always be the best solution and can lead to increasing the amount of interest you pay in the long run.

You do not have to remortgage to a new lender, you could complete a product transfer with your existing lender if your deal is ending or complete an additional borrowing application if you are just borrowing more. Your mortgage broker will be able to look at all options to ensure you secure the best deal for you.

When to remortgage?

Most commonly this will be when your current introductory fixed or discount period is ending, after which you will revert to the lenders standard variable rate (svr) which is usually much higher than your initial rate. To avoid higher payments you can remortgage to secure a better deal elsewhere.

Ideally its best to contact Your Mortgage Ghai around 4 months before your current deal ends in order to best avoid moving to the SVR as most lenders allow you to secure a deal up to 6 months before your deal expires.

It may be that you have had a change in your circumstances and wish to review your mortgage due to these changes. A remortgage may secure a better deal to meet your circumstances especially where rates have decreased over a period of time.

A desire or need to borrow more could trigger the need to remortgage. Whether its to raise money for necessary work to your home or a desire to make upgrades to your home. Pay off debts and reduce your outgoings, go on a holiday of a lifetime. Most lenders are open to many different reasons for remortgaging. Your Mortgage Ghai can work with you to help achieve your goal  

Is remortgaging right for me ?

 While remortgaging can be a great way to save money on your mortgage payments, it's not right for everyone.

Before deciding to remortgage, consider the following:

- Are you happy with your existing lender? If so, you might be able to get a better deal by switching to a new mortgage deal with them, rather than moving to a new lender.

- How long do you have left on your current mortgage? If you're coming to the end of your fixed-rate or discount period, you might be able to get a better deal by switching to a new mortgage.

- Are you planning on moving home in the near future? If so, you might want to wait until you move to secure a new mortgage on your new property.

- Are your circumstances likely to change in the near future? If you're planning on starting a family or making any other major life changes, it might be worth remortgaging now to get a mortgage that better suits your needs.

- Do you have any equity in your property? If not, you may struggle to remortgage as most lenders will require at least 10-15% equity, giving a Loan to Value (LTV) of 85-90%.

- Are you up-to-date with your repayments? If you've fallen behind on your payments, you might not be able to remortgage until you've caught up.

If you're not sure whether remortgaging is right for you, Your Mortgage Ghai can offer impartial advice and help find the best deal for your circumstances.

 What do I need to apply ?

When you apply for a remortgage, you'll need to provide some documentation so that the lender can assess your application. Typically this might include:

- Your most recent payslips

- Bank statements

- Details of any other debts or loans you have outstanding

- Details of your outgoings, such as utility bills, council tax and credit card payments

- Proof of ID, such as a passport or driving licence

The exact documentation will depend on your circumstances. Your mortgage broker will guide you through what is needed so you can prepare

 Can I remortgage if I have bad credit ?

It can be more difficult but not impossible. Specialist lenders will offer remortgages to those with bad credit. Your Mortgage Ghai has access to specialist lenders so call us on 0800 001 6567 to see how we can help you

Why speak to Your Mortgage Ghai about your remortgage needs ?

Seeking advice from a qualified expert offers you extra protection and peace of mind that you're making the right decision for your individual circumstances, and if the mortgage turns out to be unsuitable, you can complain to the Financial Ombudsman Service (FOS).

If you elect for the ‘execution-only’ route, you will not have the same level of protection, with fewer circumstances where you can complain to FOS.

We search the whole of the market to find the best deal for your individual circumstances. We’re independent so we don’t have any allegiances to any particular lender, meaning we can give you honest and impartial mortgage advice. We take care of all the paperwork and ongoing administration so once you give us the go-ahead you can leave it all to us.

If we think your best option is to remain with your current mortgage deal, we’ll tell you. We only get paid if we successfully arrange your mortgage, and then the fee is normally paid by the lender.

To get started, call us on 0800 001 6567 or request a callback and we'll call you.