The Ultimate Barclays Remortgage Guide
What is a Remortgage?
A remortgage involves applying for a mortgage with another mortgage lender while staying in your current property, not staying with your current lender, and moving to a better interest rate with another mortgage lender – this process may also be known as “remortgaging”.
Is it Time to Remortgage?
If your current mortgage deal is about to end or has already moved onto its variable rate, it is worthwhile checking for new offers. For instance, if the value of your property has changed since purchase, its loan-to-value ratio could have also improved and may provide access to more competitive interest rates and deals.
Remortgaging may also help you raise funds for home improvements or to pay off debts. You may want to reduce the mortgage term or even extend the term to reduce monthly payments. Whatever your mortgage goals it is important you do some homework and find the lowest interest rate.
The best time to start looking into your remortgage is 6 months prior to your existing interest rate or deal ending.
Why Consider a Barclays Remortgage?
Barclays mortgages are an experienced lender offering an impressive variety of mortgage products, making them a go-to lender for homeowners looking to remortgage. Their competitive interest rates, flexible terms, and variety of options make them t a strong contender for a remortgage.
Barclays Remortgage Timeline: How long does a Barclays remortgage take?
A remortgage with Barclays typically takes around 8 weeks after you apply. To ensure a smooth process, it’s recommended to start the mortgage renewal 20 weeks before your existing fixed rate ends. This allows plenty of time to secure an interest rate and eliminates the need to rush the remortgage process.
Barclays Remortgage Process
Make your Barclays remortgage as efficient and stress-free as possible with the assistance of a mortgage broker, so we have provided this step-by-step guide so you know exactly what to expect when you remortgage through them.
Receive Communication from Your Current Lender: If you’re on an introductory deal, Barclays will contact you well in advance of its expiry date. This is your cue to start considering remortgaging options.
Request a Closing Balance: Ask Barclays for a redemption statement. This document outlines the amount needed to pay off your remaining mortgage loan, including fees. This is the amount you’d need to borrow if you decide to remortgage.
Engage a Mortgage Broker: A mortgage broker can help you find the best deal for your circumstances. They can search the whole market and often have access to exclusive deals.
Decide on the Type of Mortgage: Choose between a repayment or interest-only mortgage. Barclays offers both options, but you’ll need a plan to repay the loan at the end of the term if you choose an interest-only mortgage.
Prepare for Eligibility and Affordability Checks: Gather documents like bank statements, payslips, utility bills, credit card statements, ID, records of regular outgoings, proof of bonuses or commission, and your P60. Having these ready can speed up the process.
Obtain a Mortgage in Principle: If Barclays is satisfied with your documents, they’ll issue a Mortgage in Principle (MIP). This is a non-binding indication of how much they might be willing to lend.
Arrange a Valuation: Barclays will arrange a valuation to confirm the house is worth the amount you’re asking to borrow. This is usually paid for by the customer, although some deals include it.
Submit Your Mortgage Application: As part of your application for credit, provide information about your job, industry, income, spending habits, spending patterns, credit history, and deposit size as part of your mortgage application. The more evidence there is to support you being reliable the greater chance your application will be approved.
Receive Your Mortgage Offer: If approved, Barclays will send you a mortgage offer letter. This outlines the amount you can borrow and any conditions. Check it thoroughly and inform Barclays if anything is incorrect or if your circumstances have changed.
Solicitor Draws Down Mortgage Funds: Your solicitor will request the money from Barclays and use it to pay off your old mortgage.
Register the New Mortgage: Your solicitor will register the details of the new mortgage holder with the Land Registry and transfer title deeds if applicable to Barclays.
Remember, each journey to refinancing can differ and the process will depend on both your circumstances and lender requirements.
Barclays Remortgage Calculator
A remortgage can be complex, but our remortgage calculator will give you a clear idea of how much your mortgage payments increase if you don’t remortgage.
Once your discount, tracker, or fixed-rate mortgage comes to an end, it is common that your monthly payments may switch onto your lender’s standard variable rate (SVR) which could lead to a sharp increade in your monthly mortgage payments. Our remortgage calculator can help you understand the potential benefits or remortgaging to Barclays.
Although this is not a Barclays Mortgage Calculator, our simple remortgage calcultor works by calculating the difference between your current mortgage payments and potential interest rate if you revert to the SVR, our calculator can give an approximate annual increase in payments without remortgaging. This feature is particularly helpful if your existing deal is coming to an end as this calculation takes all payments made over a full year into consideration.
Starting Your Barclays Remortgage Journey
When starting the remortgage process, our experienced mortgage brokers are the ideal starting point. They can handle every step from discussing your circumstances and goals to submitting mortgage applications and filling out paperwork on your behalf.
Working with a Mortgage Broker
Our brokers are here to make your remortgaging journey as smooth as possible, helping you find a deal that best meets your needs and circumstances. Partnering with one can save time and effort as they have expertise navigating through the remortgage process efficiently; plus access a range of deals not directly available. Don’t hesitate to reach out; our brokers are here every step of the way – let’s start this Barclays process together today.
Fact – Did you know that over 71% of mortgages in the UK are carried out by independent mortgage brokers
Case Study: Successful Remortgage with Barclays
Specific Barclays Remortgage Situations
Barclays offers various remortgaging solutions tailored to meet the specific needs and circumstances of our customers, such as:
As soon as it comes time to remortgage, contact our team. We will discuss all of your mortgage options with you and point you toward the most cost-effective deals. This process is referred to as Barclays Mortgage Rate Switch or a product transfer and may prove helpful for many homeowners.
Porting Your Barclays Mortgage When Moving Home
If you’re moving and want to keep your existing Barclays mortgage, you can opt to port it to your new property, this is know as Mortgage Porting. However, the Barclays porting mortgage process should be approached with caution to avoid potential early repayment charges. If your current mortgage deal hasn’t ended yet, you might have to pay an early redemption fee, also known as an early repayment charge (ERC), for leaving early. By porting your mortgage, you could avoid this fee. If you need additional borrowing for your new property, you might be able to port your existing mortgage and get a new top-up rate. This could be for the same or longer term to ensure affordable monthly repayments.
A mortgage broker can provide expert advice on porting a Barclays mortgage. They can help you understand Barclays products and determine when your early redemption fee will end, guiding your decision to port or not port your existing rate and products to your new home.
Switching to a Different Lender
If Barclays declines your remortgage application or offers less attractive rates than another lender, switching might be worth your while. As this involves filling out a new mortgage application process with potential additional costs involved, it is wise to weigh your benefits against costs before deciding to switch lenders.
For guidance on whether it is best to switch lenders or not read guide on Remortgage Same Lender: A Comprehensive Decision-Making Guide
Increasing Your Mortgage for Home Improvements
If you’re planning significant home improvements, you might consider increasing your mortgage to cover the costs. Barclays offers additional borrowing options that could help finance your home improvement projects. However, it’s important to carefully consider your ability to manage increased repayments before proceeding with this option.
Barclays Early Repayment Charges
If you make the decision to pay off your Barclays mortgage early, early repayment charges may apply. These vary depending on the type of mortgage and length of fixed-rate period.
|Fixed Rate Deal Periods||Barclays Early Repayment Charges|
|2 year fixed||1% of balance repaid|
|5 year fixed||2% of balance repaid|
|7 year fixed||3% of balance repaid|
|10 year fixed||10% of balance repaid|
|Tracker rate products||No ERC’s.|
Barclays ERCs remain the same as above across their whole product range – First time buyers, home movers, remortgage, buy to let ETC
This information is correct and true as of the 5th of December 2022. These charges are applicable on new mortgages with the lender and could be different for existing/historical mortgages.
Note that these fees only apply to new mortgages with your lender and may differ for existing/historical mortgages; always consult the most up-to-date information before making your decision.
Frquently Asked Questions
When can I remortgage with Barclays?
You can start the remortgage process with Barclays up to six months before your current mortgage deal ends. Starting early gives you ample time to explore your options and address any potential issues.
How do I contact Barclays remortgage?
Barclays can assist with your remortgage needs through their website, phone number or branch visits; alternatively, you may choose to work with a mortgage broker who will handle everything on your behalf.
What stops you getting a remortgage?
Factors, including poor credit scores, reduced incomes, higher outgoings, or a drop in property values could all impede remortgage applications. It's essential that you establish and maintain a good credit history and income stability to increase the odds of receiving approval for refinancing loans.
How long does Barclays remortgaging take?
The remortgage process with Barclays typically takes around 12 weeks. However, it's recommended to start the process 20 weeks before your existing fixed rate ends to ensure a smooth transition.
How do you calculate remortgage?
Calculations involved with remortgaging should take into account your remaining balance on your existing mortgage, the value of your property, and interest rates of possible new mortgage loans. Online calculators such as the Barclays Remortgage Calculator can assist with this task.
How much can you borrow on a remortgage?
Your borrowing capacity on a remortgage loan depends on factors like its value, your income, and outgoings as well as lender criteria. Most lenders allow up to an LTV ratio (loan-to-value ratio).
Remortgaging with Barclays can be an excellent way to secure a better interest rate, lower monthly payments, or unlock equity from your home. Our convenient application process and a wide variety of mortgage products make finding a deal that best meets your needs easy – product transfer, porting mortgage loan provider switch lenders, or increasing loan amount are all possible using Barclays as a source. So don’t hesitate to get in touch and chat to us online and begin your Barclays remortgage journey today!
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