Can I Get a Remortgage at Any Time?
If you are on a fixed-term mortgage agreement or have a mortgage with a discounted rate, you may have to pay exit charges if you remortgage before the end of the term.
How does a remortgage work at the end of your term? The lender will normally switch your mortgage onto their Standard Variable Rate (SVR), which is likely to make your mortgage costs more expensive, so you can remortgage before the term ends to avoid paying higher interest.
How Does Remortgaging Work to Save Money?
Borrowers that remortgage at a cheaper interest rate or more competitive mortgage terms can save a sizable amount on their monthly repayments. However, you need to know the terms, costs, interest charges and other fees to make sure your remortgage is saving you money.
What is a remortgage early payment charge? Lenders can levy a fee if you exit the agreement too early, but you can usually apply for a remortgage agreement in advance and implement the deal when your current agreement ends.
What Is Remortgage Costs?
Remortgage lenders can charge product fees, application costs and valuation fees. If these charges are rolled up into the mortgage, it may be unclear how much you are paying in total because the fees aren't separated from your monthly repayments.
Working with a broker allows you to work out which remortgage offers the best value for money, including fees and other rolled-up charges.
What Is a Remortgage APR?
The Annual Percentage Rate of Charge (APRC) is the interest rate your remortgage lender is charging. You can compare the APRC between remortgage offers to see which products are the most competitive.
What is a remortgage loan to value? Lenders might mention the LTV, which means the ratio of what you'd like to borrow against what your property is worth. A lower loan-to-value means you can usually find a better interest rate or a more competitive remortgage.
How does a mortgage work in terms of valuations? The lender will normally arrange a valuation to check what your property is worth – you can also look on Zoopla to get a rough indication.
If the lender offers a maximum LTV of, say, 75%, you can work out the upper limit you can remortgage your property for by taking the market value and multiplying it by the same percentage.
How Does Remortgaging Work for Property Valuations?
A lot depends on the lender. Some will arrange a full inspection, others will value the property from the exterior, and others will organise a desktop valuation without an in-person visit.
Can I remortgage my house if the valuer thinks the property is worth less? Potentially, yes, you can appeal a valuation that appears to be too low, but you can also consider other lenders or remortgage products with a higher maximum LTV.
Can I Remortgage At a Lower Interest Rate?
Many lenders offer introductory deals to attract new customers, such as a low tracker rate or a fixed or discounted interest charge for the initial years of the mortgage.
What is a remortgage introductory deal? These agreements make your mortgage more affordable, often for two to five years, after which time you will end up on the lender's SVR unless you remortgage with a different lender or onto a different mortgage product.
Can I Remortgage My House to Achieve Greater Flexibility?
If you'd like to make overpayments or switch to an offset mortgage, a remortgage could be a good solution. You can remortgage at any point, fixed-term agreements notwithstanding if another lender offers greater repayment flexibility.
How Does Remortgaging Work for Debt Consolidation?
Homeowners who own a property worth more than their outstanding mortgage can remortgage to a higher value, using the extra borrowing to repay other loans.
Can I remortgage to repay any type of debt? The lender may ask for information about the debts you plan to consolidate, and they will need to ensure there are no affordability issues that might affect your ability to keep up with the mortgage repayments.
How does remortgage work to reduce overall debt costs? The interest rates on long-term mortgage borrowing are normally significantly lower than credit cards or personal loans, so you can consolidate all debts in one place and repay the balance gradually with a lower interest rate.
However, the total repayments may be higher if your mortgage is over a standard 20-to-25-year term.
How Does Remortgaging Work With a Broker?
An independent, whole-of-market mortgage brokers will ensure you select the right remortgage lenders and products for your borrowing requirements and circumstances.
Can I remortgage my house through porting? Porting means you move your mortgage to a new property and may be an option if you don’t wish to remortgage or are already on a very good deal and want to bring your mortgage with you.
What happens when you remortgage? The lender will run through valuations, affordability assessments, credit record checks and other evaluations to ensure they can offer you the amount you wish to borrow, secured against your property.
