What does the remortgage process entail, and how can go2mortgages help you?
The remortgage process
Remortgaging is the process of moving your mortgage on your existing property from one lender to another. So, you stay in your current home, and your new mortgage replaces your old one. You may want to remortgage if you’re coming to the end of your existing rate or looking for a better deal. It’s important to remember, you don’t always have to switch lender, this is called a Product Transfer. Typically, remortgaging takes 4-8 weeks.
When you might want/need to remortgage
If your current mortgage is about to end. (At go2mortgages, we reach out to our clients approximately four months before the end of the fixed mortgage deal to prepare for a remortgage). If your fixed rate contract has come to an end, your mortgage may already have moved to a follow-on rate. For example, if your property is worth more than when you bought it, your loan-to-value ratio may have changed – and this could mean you have access to a wider range of deals.
If you’ve had some big changes in your life, eg if you’re starting a family or expecting a big change to your income, then remortgaging gives you the chance to find a deal that suits you best now and in the future.
If you’re looking to raise money/cash for a significant purchase or bill (like home improvements or renovation). This will likely increase your monthly payments though, so think carefully about whether you can afford the extra monthly outgoings over the full mortgage term.
What documents do you need to remortgage?
- Your last three years’ accounts/tax returns (if self-employed)
- Proof of bonuses/commission
- Your latest P60 tax form (showing income and tax paid from each tax year)
- ID documents (usually a passport)
These are the basics, but the lender may require more (case by case dependent).
Do you need a deposit?
You don’t need a deposit for a remortgage as you can use the equity you have in your home. If you wanted to get a cheaper mortgage, using a deposit to add to the equity you already own is an option and this will lead to you needing a smaller mortgage.
Remortgaging with go2
One of the mortgage brokers at go2mortgages will reach out to you roughly four months before the end of your mortgage term. They will usually give you two options:
- Stay with your current lender and renegotiate a new deal
- Look at the wider network and negotiate a new deal with a new lender
Whichever you decide, we make sure that you never pay more for your mortgage than you need to.
Things to consider
To make sure remortgaging leaves you better off, check with us if the lender you’re planning to use charges for;
- Application fee – a charge to set up your new mortgage. Also known as an arrangement, product or booking fee
- Valuation fee – to confirm the value of your property
- Solicitor’s fee – a solicitor will need to manage the transfer of your mortgage
It’s also worth double checking if the lender you’re using requires you to pay an exit fee or early repayment fee if you want to remortgage again in the future.
Contact us
If you’d like to discuss your current mortgage or are coming to the end of your fixed rate mortgage and are looking for some advice for the next step, please do not hesitate to get in touch. go2mortgages are a family business based in Cheltenham, based on 34 years experience. We provide advice on mortgages and insurances to clients nationally across all of the UK. Reach out to Liam, Phil or any one of our team on 01242 237866 or email on liam@go2-mortgages.co.uk , phil@go2-mortgages.co.uk
https://www.go2-mortgages.co.uk/
