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.