Remortgages

Remortgaging can be quite intimidating.

 

The term ‘remortgaging’ can sound quite intimidating, especially if it’s your first time remortgaging your property! But worry not. It’s a very normal process where a mortgage advisor can assist you throughout the whole process. 

At TW Mortgages, we have extensive experience in arranging remortgages across the southwest. We will do all the hard work and paperwork for you, and we will take the time to explain exactly how remortgaging works, what steps you’ll need to take and if there are any fees involved in your remortgage. 

TW Mortgages offers all mortgage advice and services completely free! As we get our commission from the lender, we’ve thrown out mortgage advisor fees to keep the process as stress-free as possible for you (lender fees may apply - see below for more information). We will potentially save you a lot of hassle, time and money so do get in contact with our free advisor for remortgages or any other mortgage queries. 

If you wish to find out more about the world of remortgages, check-out our brief guide on remortgaging below. First-time buyers will not be applicable for remortgages - find out more about first time buyer mortgages and buying a new home here.

What does remortgaging mean?

 

In a nutshell, remortgaging basically means that you’re switching your mortgage to a new lender for a better deal. And spoiler alert; remortgaging can potentially save you some serious cash. 

If you chose a fixed rate when you originally took out  a mortgage on your property, the lender will have you on an introductory interest rate for a period of time agreed with yourself. Once this comes to an end, interest rates may increase as you’ll be put on the lender’s Standard Variable Rate (SVR). 

It makes complete sense to begin shopping around for alternative lenders when the end of your fixed term is in sight, as it can save you a lot of money.

How does remortgaging work?

 

Remortgaging can potentially take a little while, depending on your circumstances. If you’re wondering when to see a mortgage advisor, then we would recommend getting in touch with us 3 to 6 months before your current fixed rate ends. Especially as we can provide advice on how to best increase your chances of getting the best mortgage rate for you - this might involve reassessing your outgoings or improving your credit score which may take time to put into action. 

When it comes to your remortgage, we will take the following steps:

  1. We will look through different lenders who are offering remortgage options that are suitable for your circumstances.

  2. We will look at your current lender’s available products to see how that compares with other lenders’ deals.

  3. We will then give you the options for you to select from and help you decide what type of remortgage to choose and why. We work closely with our customers to ensure they get the best remortgage rate for their needs.

Unfortunately, you won’t have complete freedom in your selection of a new lender. There are a few things lenders take into account before giving you a remortgage offer:

  • Good equity

  • A quality credit score

  • Affordable repayments*

*Lenders need to ‘stress-test’ your repayments which means that they see if you’d be able to comfortably repay at higher rates i.e. 7% (EU Mortgage Credit Directive, 2014). They may also look at your outgoings so we suggest you reassess your expenses and save money where you can.

What will I need for my remortgage?

 

We will give you a detailed list of what you’ll need but see below for what new lenders generally request in order to make you an offer:

  1. Proof of income i.e. last 3 months of your payslips.

  2. Your bank statements for the last 3 months 

  3. Proof of any bonuses or commissions

  4. Your latest P60 tax form - it shows your income and tax paid from each tax year.

How much does remortgaging cost?

 

There are fees involved in remortgaging, but you can be safe in the knowledge that TW Mortgages is a free advisor for remortgages. We will detail all the potential lender-related and legal fees to expect, and these will also be displayed in the Key Facts Illustration we provide with your quote.

You will need to factor in the cost of a solicitor for your remortgage. You can ask us for our recommendations or you can source your own solicitor - please do check the law firm’s reviews across Google and TrustPilot to ensure you get the quality service you deserve.

You will need to check if you have an early repayment charge or exit fee with your current lender. We will take these costs into account when shopping around for a remortgage. To avoid the early repayment charge, we recommend you request your solicitor to arrange the completion of the remortgage the working day after your current deal ends.

If you’re looking to remortgage for another reason outside of shopping around for a better deal (i.e. your income has increased and you wish to make extra repayments or wish to borrow more than your current mortgage), then bear in mind that the lender may charge a higher interest rate if you’re after flexible features.

Do I have to remortgage my property?

 

You do not have to remortgage your property. There are many circumstances which potentially means you shouldn’t switch lenders e.g. you may already have a great deal which suits your circumstances, or you may be locked in with a certain lender where there are penalty fees if you decide to leave.

However, we strongly recommend that you speak with us in case we’re able to find a better interest rate or lender that is more suitable to your circumstances.


You may have to pay an early repayment charge to your existing lender if you remortgage