In this guide, we will explain exactly what a remortgage is and also whether it is something that you should perhaps consider
A remortgage means paying off your existing mortgage with a new one. This usually involves taking out a remortgage with a new lender and paying off the mortgage with your original lender.
Although many people are familiar with what a mortgage is, however, they are often unsure what does a remortgage means and if it is something they could benefit from doing? In this guide, we will clearly show the benefits of remortgaging.
The benefits of a remortgage
One of the top advantages of remortgaging a property is the potential to secure a better deal. If another lender is offering a low fixed term interest rate, for example, you could save money by remortgaging and signing up for a lower interest rate.
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Releasing funds for home Improvements
When you remortgage your property, you have the freedom to increase the amount you’re borrowing. If your current mortgage is £100,000, for example, you might increase this to £150,000. Although £100,000 will go towards paying off the original mortgage deal, you will have access to an extra £50,000 of funds.
Remortgages are particularly popular with people who have built up a significant amount of equity in their homes. By remortgaging, you can release equity and access the funds that are currently tied up in the property.
You may want to remortgage your property to fund an extension or renovation, for example. Alternatively, you may choose to release equity in your property to pay for a big event, such as a wedding or a dream holiday.
With interest rates now being at an all-time low – Has there ever been a better time?
How does a remortgage work?
Remortgaging a property may sound complicated but it’s surprisingly simple. As so many people choose to release equity in this way, high street banks and building societies routinely remortgage properties.
However, choosing to remortgage your home is a major decision, so it shouldn’t be taken lightly. Before you make any changes to your financial situation, it’s advisable to access free mortgage advice. By working with a no-fee mortgage broker, for example, you can find out which lenders are offering the most attractive deals and lowest rates.
With in-depth knowledge of the market and the industry, a mortgage adviser is well-placed to provide all the information you need. As there are so many different lenders and products out there, it can be tricky to manage this research on your own. When you contact a free mortgage broker, however, you can access the help you need without incurring any unnecessary costs.
How quickly can you remortgage a property?
The time it takes to remortgage a property depends on the lender you choose and the complexity of your existing finances. In general, it takes around 4-6 weeks to fully complete a remortgage. However, some providers do offer a fast turnaround service.
Furthermore, placing your mortgage with help from a mortgage broker can speed up the application process. Often, delays are caused by applicants submitting the wrong information or completing application forms incorrectly. By working with an experienced mortgage adviser or broker, you can avoid potential delays and submit an accurately formatted application straight away.
Frequently asked questions
How much equity can I release with a remortgage?
The amount of equity you can release will depend on various factors, including the value of your property, your current mortgage deal and your income. Generally, there is no upper limit but your new mortgage deal will be based on your personal financial situation.
When should I remortgage?
The perfect time to start thinking about remortgaging is 5 months before your existing mortgage fixed rate or tracker rate ends. This will give you enough time to plan what you want to achieve. Get a great rate booked and enough time to get the application underway and then completed.
How much will it cost me to remortgage?
It can cost a significant amount of money to remortgage however it can also be done at no cost. Each mortgage lender varies with the fees it charges however it is possible to remortgage at no cost by getting the right lender and deal. With over 14,000 mortgages available in the UK this can seem like a headache however a mortgage broker will be able to find you a new mortgage rate at zero cost
Will a mortgage broker charge me a fee?
Although some mortgage brokers do charge fees it is quite easy to get one that doesn’t. Simply google fee-free mortgage broker near me and you will list of brokers that do not charge a fee for their services.
Spend a few minutes making sure they offer great customer service as a smooth remortgage will be important and give you far less stress. The easiest way to do this is by checking out their Facebook and Google reviews. There should plenty of them and they should be mostly 5-star reviews.
Are mortgage brokers regulated?
Mortgage brokers registered in England are authorised and regulated by the financial conduct authority.
Can YesCanDo help you with a mortgage or move home?
YesCanDo Money is a family-run independent mortgage broker near Portsmouth We are whole of market which means we will search the whole mortgage market to get you the best rates and the lowest interest rates. Also, we are a NO FEE mortgage broker which means we will not charge you one penny for our services.
YesCanDo Money has a great team of very experienced mortgage advisers and mortgage managers on hand to help you every step. So give us a call on 02392 373235 or email us at [email protected] and see how we can help you.