Once you know what a remortgage is the next stage is deciding when to start the remortgage process, this can be a daunting task. This comprehensive guide will discuss the best time to begin your remortgage journey, explain the remortgage process step-by-step, and provide tips for getting the best rate and mortgage deal.
Knowing when to remortgage: Should I Remortgage Now?
The ideal time to start the remortgage process is 4 to 6 months before your existing rate ends. If your mortgage situation is straightforward, 4 months should be sufficient. However, it’s important to consider that everyone’s remortgage circumstances differ. The timeline may vary depending on your goals, such as securing a better rate, raising funds for home improvements, or consolidating debt.
Related reading: Can you remortgage early?
Remortgaging at the right time to avoid an early repayment charge
Before deciding to remortgage your property, it’s essential to take into account any early repayment charges (ERCs) that may be applicable. ERCs are fees that mortgage lenders can charge if you pay off your mortgage before the end of your current fixed term.
The charges can vary between lenders and mortgage deals, so it’s important to check the terms and conditions of your current mortgage before deciding to remortgage. Some lenders may also apply ERCs if you switch to a new deal within the same lender.
However, there are situations where paying an early repayment charge may still make financial sense, such as if the savings from remortgaging outweigh the fees charged.
You also don’t want to revert to the lender’s standard variable rate once your fixed rate on your existing mortgage ends as this could see you paying a lot more money each month.
A mortgage broker can help you navigate these complexities and timings and will find the best deal for your circumstances.
So, before you embark on the remortgage process, be sure to check if any ERCs apply and weigh the costs and benefits carefully.
Understanding the Remortgage Process: A Step-by-Step Guide
Remortgaging can seem like a daunting process but it doesn’t have to be. Whether you’re looking to save money on your monthly payments or release equity from your property it is essential to compare mortgage deals. How does remortgaging work? Here’s a step-by-step guide to help you navigate the process and get the best deal for your circumstances.
Stage 1: Identifying Your Goals and Seeking Advice
First, determine your objectives for remortgaging. Are you looking to:
- Borrow additional funds for home improvements or debt consolidation?
- Decrease the mortgage term?
- Secure a better interest rate?
Once you’ve identified your goals, consult a mortgage broker to help you find the best-suited mortgage lender and the lowest rates and deals for your situation.
Stage 2: Find the Best Mortgage Deal
After you have decided on your remortgage goals, it’s time to look into what mortgage deals are available. Your broker will do their due diligence by exploring the entire market and finding interest rates that align with your financial objectives. They’ll provide you with a list of alternatives, allowing you to quickly select an ideal option. With a remortgage, there are several important factors to consider – loan period, interest rate, and related fees.
Stage 3: Meeting the Mortgage Lender’s Criteria
After identifying the right mortgage lender, it’s time to submit your application. Each bank and building society requires different information, but they all need to assess your affordability. Be prepared to provide:
- Your last 3 months’ payslips
- Details of any loans or credit cards
- Your last 3 months’ bank statements
The lender will use their remortgage affordability calculator to determine how much you can borrow and what interest tare and deal they can offer you. A mortgage decision in principle will be issued, and a credit check will be performed to ensure your credit score meets their requirements.
Stage 4: Getting a Valuation Survey
Once your application is accepted, the lender will conduct a valuation survey on your property. This may involve:
- Desktop valuation
- Drive-by valuation survey
- Physical valuation
If the lender is satisfied with the property’s value, your application will move to their underwriting department for further assessment.
Stage 5: Completing Your Remortgage
At this stage, the solicitor or conveyancing company will start the process of transferring the funds of the new mortgage to pay off your current deal. They will also change the name of the bank or building society with the land registry office.
Compare mortgage lender deals with the help from a mortgage broker
The solution to finding the best remortgage product is to use a fee-free mortgage broker who will do all of the above for you. They will search the whole mortgage market and do a mortgage comparison of 14,000 different interest rates and remortgage deals. They will find you the very best rates and mortgage deals and when they have they will then submit the mortgage application to the bank or building society for you.
The broker will then be talking to your new lender every week. They will also liaise with your solicitor until the new mortgage is ready.
A mortgage broker sounds great but how much are their services?
Mortgage brokers will charge anywhere between £500 and £1,000 for remortgaging you.
However, there is such a thing as a Fee Free Mortgage Broker who does not charge for their services. In fact, there are thousands of them in the UK so will highly recommend that you find one that works best for you.
With the help of our mortgage team, you can actually remortgage for free if you take advantage of a few incentives.
Would it be easier to stay with the existing lender?
We don’t blame you for thinking that it would be easiest to stay where you are and stick with your current mortgage deal. It may sound a bit of a nightmare to switch however your existing lender will rely on you feeling as if it all seems too much to leave them. They will offer you a rate that seems like a great fixed rate mortgage but probably isn’t.
With over 14,000 different mortgage interest rates and deals in the UK mortgage market, don’t assume it makes sense to remortgage with the same lender that you have been with for the last few years. You could lose thousands of pounds by staying and settling for a poor interest rate and current deal. Now is the time to get a new mortgage deal and very likely a cheaper mortgage deal!
Remortgaging at the perfect time with help from a mortgage broker
Finding the right time to remortgage can be a challenge, especially if you’re not familiar with the mortgage market. This is where a broker can be a valuable resource. A good broker can help you navigate the complex world of remortgaging and find the best overall deal at the perfect time.
When searching for the best broker for you, consider looking for someone with experience and expertise in the remortgaging process. A broker will take a look at your existing deal and can help you assess your financial plans and determine the right time to remortgage based on your specific needs and goals.
They can also help you compare rates and terms from different lenders to find the best overall deal. This can be especially helpful if you’re not familiar with the mortgage market or don’t have the time or energy to do the research yourself.
Overall, working with a broker can take the stress out of remortgaging and help you save money in the long run. So, if you’re considering remortgaging your home, consider reaching out to a trusted broker to guide you through the process.
YesCanDo Money: Fee Free Remortgage Services
Here at YesCanDo Money, we are a family-run and independent whole of market fee free mortgage broker. We offer our mortgage services free of any charge throughout the UK. Our team is experienced in helping you achieve your property goals with the best possible mortgage. Our expert services are highly recommended by thousands and are completely FREE!
We have built the business over the past 30 years by helping and advising clients to make the right and best decision for their situation. We use a combination of good old-fashioned customer care with the advantages of modern technology. You will be able to have a face-to-face meeting via Zoom or FaceTime or Skype with an adviser or if you prefer a chat over the phone.
We will ensure you don’t leave your existing mortgage deal early by checking you don’t have any early repayment charges on your current deal. We will then work very hard to get you a great remortgage deal with lower monthly repayments. Being a free-to-use whole-of-market broker we compare interest rates from every lender with the aim to get you a cheaper interest rate and deal.
Our team of 17 experienced advisers and consultants will advise you on the best new deal when remortgaging. They will then submit your mortgage on your behalf as well as talk to your conveyancer through the whole process right up until completion.
We have found WhatsApp to be really popular with our customers as it makes getting updates and communicating very easy. Let’s get your remortgaging journey started. We are here to help you every step of the way…
When should I start to look to remortgage?
If you're contemplating remortgaging, it's best to begin the process between six and four months before your current deal ends. Giving yourself sufficient time is essential as it allows you to thoroughly research remortgage deals with the lowest arrangement fees and exit fees, plus ensure that all paperwork and checks are finished properly.
How long do I need to have a mortgage before I can remortgage?
It's not mandatory to wait any particular length of time prior to remortgaging, yet it is typically recommended that you do so when your present mortgage deal comes close to expiry and not remortgaging early. Nevertheless, remember that if you switch mortgages ahead of the agreement ending date, a penalty fee may be applicable.
Is it best to remortgage every 2 years?
It is usually wise to remortgage every few years in order to make sure you are receiving the best possible rate. However, if interest rates increase over the next two years and you had opted for a five-year fixed instead, then that could prove more beneficial than opting for a yearly review of your mortgage terms. With timely remortgaging strategies, you can save thousands upon thousands of pounds throughout the life of your loan!
Should I remortgage now or wait until next year?
If you're wondering when to remortgage, the answer is that it completely depends on your situation and current market conditions. While low interest rates are a great incentive to refinance now rather than later, if you have an early repayment penalty associated with your fixed-rate loan then waiting until after the duration of this period would be more suitable for you. To ensure that you make a decision which best suits your needs, don't hesitate in consulting with a mortgage advisor who can help assess what will work most effectively in both short-term and long-term scenarios.
How soon can you remortgage before fixed rate ends?
Are you considering remortgaging before your fixed-rate period is up? Generally speaking, it's possible to do so at any time; however, keep in mind that early repayment charges may apply. It's important to be aware of these and factor them in when making the decision whether or not to go ahead with the move.
Before determining to refinance your fixed-rate mortgage, it's essential to check the conditions of your agreement. If you're thinking about remortgaging before the end of your fixed-rate period, be aware that hefty early repayment charges may apply.
Even though the fixed-rate period has lapsed, you can still remortgage without incurring any penalties. It's highly recommended to compare deals and consult a broker for advice when it comes to selecting the best rate and timing of your switchover. Ultimately, do your due diligence before deciding on re-mortgaging so that all aspects are covered.