Remortgaging made simple
When you remortgage, the lower the loan-to-value you need, the more deals that might be available to you – which should get you cheaper mortgage deals.
How to remortgage, with expert guidance from Sunland Mortgages
How to know if you can remortgage
If you want to know whether you can remortgage the best thing to do is ask your lender or a mortgage broker. One of the most common reasons why you may not be able to remortgage is that you do not pass affordability checks. You may also struggle to remortgage if you have a low credit score. The score is a reflection of how you have handled debt in the past.
Having negative equity can also prevent you from being able to remortgage. This is when you owe more on your mortgage than your home is worth. If you have to pay an early repayment charge (ERC), which is a charge you pay if you end your mortgage early, it might make better sense to wait to remortgage until nearer the end of your initial period.
How likely you are to get a remortgage?
How likely you are to get a remortgage will depend on your own personal circumstances. A lender will look at your current financial situation as well as how well you’ve handled debt in the past.
They’ll also want to know what your home is currently worth compared to how much of it you own. This is known as the loan to value (LTV). You’ll get cheaper rates for a lower LTV as the risk to the lender is smaller.
Why should I remortgage?
When you first took out your mortgage, you might have signed up for a really good deal. But over time, the mortgage market changes, and new deals become available. This means there might be a better deal available for you now, which could save you hundreds of pounds.
You won’t necessarily have to change lender.
Remember to check if there are any arrangement or product fees on any new mortgages you’re looking at, and if you’re ending your mortgage deal early, any early repayment charges from your existing lender.
These fees can add to the cost of remortgaging and might make remortgaging more expensive than staying on your current deal.
Speak to an expert?
YOUR HOME (OR PROPERTY) MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE, OR ANY OTHER DEBTS SECURED ON IT.
How to Remortgage
If you remortgage with your current lender, they may not check your credit history.
This would only be the case if you were not borrowing more or changing something important, like the length of your mortgage or the type.
Otherwise, a lender will look at your credit report. Your credit report or file is a detailed record of your credit and debt history.
It includes things such as missed debt repayments, and how much credit card and loan debt you have.
Your credit report helps a lender decide whether to give you a mortgage.
It’s a good idea to look at your credit report before you remortgage. If you apply and the lender turns you down it will affect your credit history. This could make it harder to get a loan in the future.
You’ll get a better mortgage deal the more equity you have in your home.
Equity is the value of your home minus how much you owe on your mortgage.
Your home might have gone up or down in price since you bought it. Ask an estate agent to value your home or check a property website.
This will give you a more accurate figure to use when you look for deals.
Brokers help you decide what type of mortgage you need, then find the right deal for you.
Some work with many lenders so they’re able to choose from lots of different deals. At Sunland Mortgages, we work with more than 90+ lenders, for example.
Brokers are really useful if your situation is more complicated. For example, if you have bad credit or are self employed.
When you need a solicitor
You do not need a solicitor or a conveyancer for the legal side of things if you remortgage with your current lender.
You will need a solicitor if you move to a different lender.
Some lenders will use their own solicitor, and not charge you for it, or offer you cashback if you want to use your own.
We’re Here to Help You
Yes, you can get a new mortgage with a different lender. You don’t have to use your existing lender to remortgage. But remember, you may have to pay penalties if you’re still on your initial deal. If your deal is ending or has ended, typically there are no penalties.
Only if you’re changing lender. You won’t need a valuation if you’re staying with your current lender.
If you’re looking for the best deals to remortgage, you should start looking with plenty of time to spare. Most lenders will let you remortgage several months in advance of your existing mortgage deal coming to an end. This varies between lenders, but you can normally remortgage anywhere between three and six months before your current deal expires. Don’t forget to check whether any early repayment charges apply on your current deal.
Make sure you take advantage of this time to compare rates and find a (hopefully) better deal. Avoid slipping onto the standard variable rate, as this is almost always more expensive than the many fixed-rate deals you can find.
It’s typically faster than buying a new home. It can take less than a day if you’re staying with your existing lender and not borrowing an additional amount.
If your current deal is coming to an end and you’re thinking of switching, make sure you start the process early enough to move straight to your new deal, without a few months of paying at the (usually higher) standard variable rate. Most lenders allow you to apply and secure a rate for three to six months before you complete.
Different providers have different age limits, so you’ll need to check this with any provider that you’re considering. Some may have a maximum age for starting a mortgage, and others for when the mortgage term ends. This could mean that if you’re 61 and remortgaging, you might find mortgages that need to be paid off by the time you’re 70. But what may matter more is whether your income is high enough to cover your mortgage repayments.
Committed on delivering export mortgage advice
We have access to over 90 lenders, from the major High Street banks, to smaller, specialised lenders, meaning we have scope to help more people than ever. Across these lenders, there are over 12,000 different deals, so why not allow us to manage the process of finding the most appropriate deal for you and your circumstances. It’s what we do!