Business

Everything You Need to Know About Re-mortgaging

Re-mortgaging is when you switch your mortgage advisor Birmingham mortgage to a new lender or even can remain with the same, usually to get a better deal. This can involve taking out a new mortgage with a different provider, or simply moving your existing mortgage to a new lender – known as ‘product transferring’.

Re-mortgaging can save you money by getting you a lower interest rate, or releasing equity from your home so you can consolidate debts or make home improvements.

When you re-mortgage, you usually have to pay some fees to the new lender including:

  1. Arrangement fees – these are paid to the lender for setting up the mortgage and the amount depends upon the lender.
  2. Valuation fees – the lender will value your property to make sure it’s worth enough to secure the mortgage against.
  3. Early repayment charges (ERC) – if you have a fixed-rate mortgage, you may have to pay these if you want to switch before the end of the fixed-rate period.

Before you remortgage, it’s important to weigh up the costs against the savings you could make. Use our remortgage calculator at www.morfinity.co.uk/mortgage-calculator to see how much you could save.

Is Remortgaging Right for Everyone?

Re-mortgaging is not right for everyone and there are a few things to consider before you switch:

  • How long you’ve left on your current mortgage term – if you have a small amount left to pay, it may not be worth re-mortgaging as the fees could cancel out any savings
  • Whether you’re tied in to your current mortgage deal – some deals have early repayment charges (ERC) which you may have to pay if you switch before the end of the fixed-rate period
  • The value of your property – your home will need to be valued by the new lender and if it’s worth less than you owe on your mortgage, you may struggle to re-mortgage
  • Your credit score – if you have a poor credit score, you may find it harder to get approved for a new mortgage deal
  • Your current financial situation – if you’ve had any financial problems in the past, such as CCJs or IVAs, this could affect your ability to re-mortgage

How to Remortgage?

The process of re-mortgaging is similar to taking out a new mortgage, but there are a few things to bear in mind:

  1. Shop around – use a mortgage broker or whole-of-market lender to compare deals and make sure you get the best deal for your circumstances
  2. Check the fees – as well as the interest rate, make sure you check the arrangement and valuation fees charged by the new lender
  3. Get a solicitor involved – they will carry out all the legal work involved in switching your mortgage to the new lender
  4. Switch – once everything is approved, your mortgage will be
  5. switch to the new lender or even to a new product with the same lender and you’ll start making payments to them

If you’re thinking of re-mortgaging or would like more information on how it works,

get in touch with our team of expert mortgages for teachers in Birmingham at Morfinity Mortgages today.

Related Articles

Back to top button