Don't Let Your Mortgage Deal Expire - Get Expert Help from R3 Mortgages

When you remortgage you move your loan from one lender to another. For example, Amira’s mortgage with Bank A is coming to an end. Through a broker she has negotiated a new deal with Bank B who would be repaying the loan she has with Bank A as part of the process. In this case, Amira would be remortgaging to Bank B.

There are many reasons why people remortgage. These include:-
- secure a better deal
- want to borrow more against your current property

The first stage of the remortgage process would be to secure your new loan. You could do this yourself or with the assistance of a broker. Once that loan is secured, a solicitor or licensed conveyancer would do the necessary legal work to redeem your existing loan and register the new lender. If you are releasing funds as part of the process, the solicitor/conveyancer would transfer the surplus funds.

If you are considering remortgaging the first thing you should consider is what are the costs to change. For example, you may have an early repayment charge of your mortgage if you redeem it during the deal term. Therefore it is very important to check the terms of your original mortgage offer so you know what the exit costs are.

Lets say Amira has a 2 year fixed rate mortgage that ends on 1/6/2022. If she redeems the mortgage before this date there is a 3% early repayment charge on her mortgage of £200,000 (i.e £6,000). If Amira sets up her new deal to complete after the 1/6/2022, the early repayment charge would not apply.

The other costs involved with remortgaging could include:-
- Exit/ Deeds release fees
- Valuation fees
- Legal Fees

As an incentive to remortgage, as part of their package a new lender may agree to pay for a revaluation of your property as well as standard legal fees to make the switch. This differs from lender to lender.

It varies and could be anywhere from 4-8 weeks. It is therefore worth considering your options 3-4 months before your current deal expires.

When you are considering refinancing, you could consider the offering from your current lender. However, you should also consider this with other options that are available. Lenders looking to gain market share may offer more attractive terms. Therefore, if you are coming out of a mortgage deal it is a great time to consider both options.

Whether you are moving property or remortgaging an existing property, the documentation is generally the same e.g identification verification, income verification, etc.

There are many mortgage lenders all with different products and criteria and ultimately that is one factor that sets them apart. Therefore, changes in your circumstances do not potentially rule our your ability to remortgage.

The same process applies to buy to let properties as residential ones.

It is usually advisable to start considering your options 3-4 months before the end of your current mortgage deal. This allows time for the mortgage application and necessarily legal work to take place.

If you have early repayment charges with your current lender you may want to consider a further advance with the same lender. If that is not possible or does not achieve your desired outcome you could also consider a second charge with another lender.

The best time to start thinking about remortgaging is six months before your current deal expires. This gives you plenty of time to make the necessary arrangements if you need to switch lenders. However, at the 6-month mark, your current lender may be unable to tell you what they have to offer, making comparison difficult.

If you want to switch lenders, you'll need to provide similar information you did when you applied for your current mortgage. This will entail verifying your identity, income, and expenses. Our team will guide you through the process and inform you of what you require.