Mortgages & Loans UK

UK Remortgages - How to remortgage

Remortgages & Advice on how to do this

Your current lender may be prepared to offer you a better rate of interest this could make the process run more smoothly. You may well be able to borrow extra funds when remortgaging taking advantage of a more competitive rate. If your current lender can not offer you saving or hard to refuse rates you will want to switch lenders, if this is the case a redemption penalty* may come into force, this will be a consideration when considering your remortgage options. Make sure you have the cash to cover any fees the lender may pay offer to pay them for you. or you could add it to the price of the remortgage.

Redemption penalty* - If you have changed from a a discounted or fixed rate deal you may well incur redemption penalties but the savings you could make by remortgaging could be worth it and are even greater savings than what you would expect simply by changing insurers.

How much does it cost?

Fees incurred when going through the remortgage process -

  • Redemption charge
  • Valuation cost
  • Arrangement fee for the lender
  • Legal - solicitor's fee (Solicitors can perform all necessary searches, report transfers and new lender titles.)
  • Disbursements
  • early repayment charges (applicable in some cases)
  • booking and broker fees
  • mortgage indemnity (this is rare)

These, remortgage quotations from different lenders is the best bit of advice one can be given as fees do vary from lender to lender. Some lenders may offer "cash Back" as part of the remortgage package which can cover all associated fees and costs, some lenders will offer to pay all charges but this may well be reflected in a higher interest rate.

When you purchased the property for the first time you may had a full structural survey or home-buyers report carried out on the property if this is the case you will not have to provide an equally detailed survey the second time round, this could help lower the cost of your repayments also. If this was not the case your home will require an independent valuation of your home to make sure there is enough equity in the property and to ensure your original lender is repaid once your new lender has granted you a remortgage and transferred the funds.

Remortgage Choices

Choosing the best remortgage product a critical choice as with other mortgage packages there are many forms, each one tailored to suit the borrowers circumstances, such options can include

  • Fixed Rate
  • capped Interest Rate
  • Discounted Rate
  • Base Rate Tracker
  • The list goes on......

Consulting an independent mortgage adviser eliminates most of the confusion involving these matters, they should be able to source best remortgage to suit your financial circumstances saving you time and stress.
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