You want to get your remortgage underway however a question often asked is. When is too late and when is too early to start my remortgage? In this guide, we make it very clear when you should get your remortgage underway.
The best time to start the remortgage process is 4 months before your existing rate finishes. If your mortgage situation is straightforward 3 months will suffice.
Not everyone’s remortgage will be the same and depending on what you are trying to achieve with your remortgage it will differ the date you can start the remortgage. In this guide, we will show you the best time to start a remortgage if you want to get the best rate. We will also give the best time to start if you are wanting to raise money for home improvements or debt consolidation.
The Remortgage Explained
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What is the remortgage process?
The remortgage process starts with knowing what you are trying to achieve.
- Are you wanting to borrow extra?
- Are you wanting to raise extra to enable you to carry out home improvements? Are you wanting to carry out any debt consolidation?
- Perhaps you want to decrease the term?
Now you have an idea of what you want to achieve you now need to find a new mortgage lender that will accept you and your situation whilst providing you with a great rate and deal.
Once you have the right mortgage lender you need to get the application underway. Every bank and building society will need different information from you however they will need to check you fit their affordability. The lender will ask to see your last 3 months payslips to learn of any loans and credit cards you may have and to see your last 3 financial months bank statements. Once the mortgage lender has the required documentation they will check with their affordability remortgaging calculator to see how much you can borrow and what they are willing to offer you as a new mortgage deal.
The mortgage lender will now submit a decision in principle also known as an agreement in principle. At this stage, a credit check will be carried out as part of the mortgage application to make sure your credit score is acceptable.
Once the application is accepted they will want to carry out a valuation survey on your property.
This will be either a:
- Desktop valuation
- Drive-by valuation survey
- Physical valuation
Once the lender is happy that your property is suitable to secure a mortgage on, your application will go into their underwriting department.
The underwriting department will pull everything you have provided together along with the valuation survey. Once they are happy that everything meets with the mortgage lenders criteria, they will then produce a mortgage offer.
At this stage, the solicitor or conveyancing company will start the process of transferring the funds of the new mortgage to pay off your old mortgage. They will also change the name of the bank or building society with the land registry office.
For more details on ‘what is remortgage‘ < click here.
Paying too much for your mortgage?
Chances are you could save money with a better rate
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. 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 a great deal but probably isn’t.
With over 14,000 different mortgage rates and deals in the UK mortgage market, you would be mad to stay with your existing lender. You will probably lose thousands of pounds by staying and settling for a poor interest rate and deal.
Don’t panic! We have a solution for you!
The solution is to use a mortgage broker! A mortgage broker 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 deals. They will find you the very best rates and deals and when they have they will then submit the mortgage application to the bank or building society for you.
The mortgage 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 won’t they charge me a fortune?
You could be right as many mortgage brokers will charge anywhere between £500 and a £1,000 for remortgaging you.
However, the is such a thing as a no 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.
You can actually remortgage for free if you take advantage of a few incentives. < Find out how here.
How do I find a fees free mortgage broker?
You have a couple of choices. Firstly ask your family and friends do you know of a no-fee mortgage broker near me? If this unsuccessful get Googling!
Google : ‘No fee independent mortgage broker near me‘
This will bring up a list of brokers that will not charge you and will also be able to help you in remortgaging. However, don’t settle for the first one you see, spend a little time comparing a few of them. Think to yourself:
- Is there website up to date and modern?
- Do they have a big online presence with the use of social media?
- Do they communicate with their customers using modern communications such as WhatsApp and video call?
- Most importantly check out their Facebook and Google review. There should be lots of reviews and make sure they are mostly 5-star reviews.
YesCanDo to the rescue…
How YesCanDo and their team of local mortgage advisors can help
Here at YesCanDo Money, we are a family run, independent whole of market mortgage brokers based near Portsmouth in Hampshire. Our services are highly recommended 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.
Our team of 17 experienced advisers and consultants will advise you on the best 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…
Who are the FCA?
All mortgage brokers are authorised and regulated by the Financial Conduct Authority FCA. This is for your protection and to make sure that the service and deal you get is the right one for you.
Can I remortgage at any time?
You can remortgage as long as you are not tied into your existing rate or deal. Remortgaging too early will lead to you having to pay an early repayment charge. The early repayment charge could be several thousand pounds so get your mortgage broker to check this out for you first.
Would it be a good idea to go onto my lender’s standard variable rate?
It is very unlikely that the variable rate is going to be any good for you! In the majority of times going onto your lender’s standard variable rate will see your monthly payment increase significantly.
Is it a good time to remortgage?
Has there ever been a better time for remortgaging? With the bank of England reducing the base rate to an all-time low this has been reflected in the fixed rate and overall deal and incentives that lenders are now offering. Interest rates have never been so low and you will be able to get a great fixed rate and deal.
How far in advance should I get preapproved for a mortgage?
The very earliest you will be able to get preapproved is 6 months before your existing mortgage deal with your present bank or building society ends. Although you are probably keen to get a great interest rate and deal waiting; that 6 months is very important!
Should I pay an arrangement fee to get a lower interest rate?
We get asked this question often and the answer is not straight forward. However, if the mortgage you are applying for is over £150,000 the answer is usually yes.
So you are looking to remortgage what is the best rate to choose, the low rate or the even lower rate at a cost? You have two options to help you answer this question:
- A fixed rate that has no arrangement fee
- A fixed rate that is lower but with an arrangement fee
The option you choose should be obviously the best deal for you and your situation. Learn more about arrangement fees and their overall deal here.
Read this if you are looking to remortgage with Santandar