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Why do I need to remortgage?

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Why do I need to remortgage?
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If you are coming to the end of your fixed-rate mortgage deal and are asking yourself what will happen if you do not remortgage, then read this helpful guide. The initial answer is quite straight forward. Banks and building societies are more than happy for you to not remortgage and in fact, you could even say that they are keen for you not to complete your mortgage renewal.

It is highly advised to remortgage your home when your current deal comes to end. The reason for this is that your existing rate will come to an end and the rate will revert to the mortgage lenders’ standard variable rate (SVR). This will be considerably higher than your fixed rate and you will see a sharp increase in your monthly mortgage payment.

How to find the best mortgage deals with no fees when remortgaging

With over 90 banks and building societies in the UK offering 14,000+ different mortgage products / deals, getting the best rates and deals can seem overwhelming! The good news is the majority of mortgages in the UK are arranged with the help of a mortgage broker. Find yourself a ‘whole of market’ mortgage broker as they will be able to search every bank and building society in order to find you the best mortgage renewal deals with no fees.

How does a remortgage work?

When you started your current mortgage you were more than likely offered a nice low-interest rate as an incentive. This would have been for the first 2 years or even possibly 5 years however the problem is good things come to an end. Therefore 6 months before the better rate ends you want to get the ball rolling on remortgaging. Your aim will be to find the best remortgage deals so you do not get an increase in your rate and monthly payments.

How long does a remortgage take?

The average timescales for a remortgage is around eight weeks. Although it is very possible to complete a remortgage in as little as 4 weeks. However, 2020 has proven that these timescales can differ week to week. You can help your remortgage move along quicker yourself by being organised with your paperwork. Although 2020 has been a difficult year, remortgaging now is a great time to not only grab a historically low-interest rate but also it is a superb time to sort out your finances. In this guide, we will show the quickest and most efficient way to remortgage and a few tips on getting the lowest interest rates and best deal at no cost!

By now your want to switch rate should great! So, what is the remortgage process? Below we will take you through more of the process of remortgaging. This will allow you to understand the steps of your new mortgage renewal and more importantly what you will need to provide in order to get the remortgage completed as smoothly as possible.

Speak to a mortgage advisor on WhatsApp
A remortgage can be carried out over the phone or email but WhatsApp allows extra convenient fast commuication and updates.
If you have a preference for using WhatsApp get a mortgage broker that uses WhatApp to communicate!

Do mortgage brokers charge a fee?

Although some mortgage brokers do charge a fee there are in fact lots that are fee-free. The easiest way to find a fee-free broker is to Google – “fee free mortgage broker near me”. This will give you a list of mortgage advisors that will be able to help you remortgage without paying any fees. Take a few minutes to have a quick look at their website as well their Google, Facebook or Trust Pilot reviews and make sure that they have a modern approach and very happy clients. Time to get a better remortgage rate? Get in touch with YesCanDo Money.

What information do I need to provide to remortgage?

The mortgage broker will want a chat with you on the phone and will ask for some basic details. You will be asked your full name, address, and date of birth, and other basic information. Other information you will need to provide is usually things such as:

  • Identification (usually a passport or driving license).
  • Latest 3 months payslips and bank statements.
  • A credit report / credit score (we recommend Experian or ClearScore who both offer this for free)

How early can you remortgage your home

So you want to remortgage? It makes sense to start your remortgage 6 months before your current mortgage rate ends. This will give you plenty of time so that your remortgage is not rushed. A remortgage takes on average 3 months from start to finish so you really do not want to leave it later than three months before your existing mortgage deal ends.

Will I need to pay an early repayment charge?

There is no way you should be willing to pay an early repayment charge (exit fee) unless it makes complete financial sense. Your current lender could charge you as much as 3% of your mortgage loan and therefore this should be avoided at all cost! The good news is your mortgage broker will make sure this doesn’t happen. It’s all in the timing. Starting a remortgage with plenty of time and also not starting your new deal too early! However, an example where it could make sense to pay the early repayment is if you wanted to make use of the 2020/21 stamp duty tax cut to save money that is a great amount than the early repayment charge. We just highly recommended speaking to an expert mortgage broker like ourselves to avoid paying more money than you need to.

Will I have to pay any fees to remortgage?

When you remortgage there can be lots of costs and remortgage fees payable. These can include

  • Legal fees
  • Surveys
  • Arrangement fees
  • Broker fees (not us though!)

Although lots of mortgage deals and rates come with costs and fees there is an easy way to avoid these. Your mortgage broker will be able to search the whole market for the best remortgage deal with no fees. A lot of the time it can actually be possible to remortgage for free by avoiding any costs at all.

When I Remortgage how much can I borrow?

A lender will make a decision on how much you can borrow based on a couple of factors.

  1. Your property value (how much your property is worth)
  2. Your overall income/affordability.

Each lender will then use their mortgage calculators to calculate what size mortgage they will be willing to lend. If you are looking at borrowing more than you currently are, your new lender will want to know what you require the extra funds for such as home improvements and consolidating debt.

Can I remortgage for debt consolidation?

It is possible to remortgage to help consolidate/repay debt however every bank and building society will look at this differently. All lenders will need to see that you have not had any financial difficulties such as late payments, defaults or CCJs. Every bank and building society will make a decision on how much they will lend you by using a mortgage affordability calculator.

What is a mortgage affordability calculator?

All banks and building societies decide how much you can borrow with the use of their own mortgage affordability calculator. They will input your income and outgoings and will also need to know how may many dependents you have along with a few other factors. This will allow them to calculate what size mortgage they believe is affordable to you in your current and near-future financial situation. Every mortgage calculator is unique to each bank or building society. This means that the easiest way to calculate how much you can borrow is with the help of an independent mortgage broker. Once again the good news is most brokers have access to every lender’s affordability calculator and will quickly be able to tell you which lender will lend you the amount you require.

What is the best fixed-rate term to choose for my remortgage?

This is a difficult question to answer as it will fully depend on your personal circumstances. A rough rule of thumb is the larger your loan to value (LTV) the shorter you want your remortgage rate for. If you have a lower loan to value usually under 60% LTV then it might be worth considering a longer fixed-rate term.

Another important thing to remember is if you are considering moving in the next couple of years and you take a longer fixed rate then you need to be certain your mortgage is portable. Once again a mortgage broker will be able to give you good advice for the best deal.

Remortgaging during the Coronavirus pandemic

It may be that your area is in tier 1, tier 2 or even tier 3 in lockdown due to the Covid-19 Coronavirus and you are therefore looking at ways of saving money. Our FREE mortgage service will look at all the options that are available to you regarding remortgaging and what options best suit your situation.

Even though the Coronavirus has most of us in lockdown (again!), you will still be able to remortgage and will probably save a considerable amount of money in doing so. Let’s face it, we all need more financial security during this very difficult year! It may be that you will need to plan your remortgage in a little more detail than usual (with the help of us of course) but remortgaging is very possible and highly recommended.

Making sure that you re-mortgage on time is now more essential than ever. How much you could save by remortgaging can be a considerable amount of money. Having the right deal gives you peace of mind knowing that the monthly mortgage payments are a fixed and affordable amount.

How to find an amazing mortgage broker!

YesCanDo Money is a family-run mortgage broker and is one of the UK’s largest NO FEE mortgage brokers. YesCanDo is whole of market which means they have access to the best deals with no fees.

After an initial chat, YesCanDo Money will carry our research into the best mortgage lender for you. Once you are happy to proceed they will submit your mortgage application on your behalf and then see the whole process through to completion. YesCanDo Money is one of the very few mortgage brokers that use WhatsApp making it very easy for you to communicate with them through your remortgage.

YesCanDo Money is one of the highest-rated mortgage brokers in the UK with hundreds of 5-star Google reviews so sit back and relax with peace of mind that you have found a great no-fee 5-star remortgage service.

YesCanDo money is a trading name of Roberts Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority, authorisation number 527815. Your home may be repossessed if you do not keep up repayments on your mortgage.

Related articles

How much mortgage can I get?

When is the right time to remortgage?

How many times my salary can I borrow for a mortgage?

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Steve Roberts
Steve Roberts

Stephen Roberts MAQ is the founder of YesCanDo Money, Hampshire's largest no-fee mortgage brokers. With over 30 years of mortgage experience, he has advised and helped thousands of First-time buyers buy their first home and home movers buy their dream home. Speak to a mortgage expert today by completing our contact form:

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