A Remortgage is when a homeowner takes out a new mortgage with a new mortgage lender on a property they already own. It is also considered to be a remortgage if a homeowner takes out a new mortgage on an unencumbered property that they own. An unencumbered property is a property which is owned outright and has no mortgage outstanding.
The reason for remortgaging from one lender to another may be to get a better rate, opt into a fixed rate or to raise finance for:
- Home Improvements
- Medical or Dental Treatment
- New Car
- Debt Consolidation (except tax liabilities)
- Deposit on a new property
- Gift to children so that they can put a deposit down on a property
The Remortgage Process
Although we provide a service both locally and nationally, we are 100% telephone and online based. This allows us to better serve you!
Always the first thing to do is for us to speak with each other so that we can find out about your current financial position what you want to achieve now and in the future. You may just want to get a better rate because your current deal is about to end, or you want a mortgage with more flexibility. Maybe you want to borrow more or you are interested in taking out a fixed rate mortgage for peace of mind.
Once you are happy to proceed we will send you our introduction pack via email which not only introduces us but includes all of the forms you need to complete and send back to us. We will then work towards finding the best mortgage for you and then if appropriate get an “Agreement in Principle” done with a mortgage lender direct. This is once we have researched the most competitive rates on the market.
An Agreement in Principle is when a lender agrees to give you the money based on the information you have given. It is usually after a credit search or credit score has been done. Obviously a formal application has to be made if you proceed but you should not be worried if you have all of the documentation to support the information given at the agreement in principle stage.
Once a formal mortgage application has been submitted to the lender a valuation will be done. As you already own the home the mortgage lender will often just look at a house price index to get a current valuation of your home. It depends on the lender but some are still sending out valuers to your home to have the property valued and inspected before they lend.
Usually the new lender will pay for the valuation fees and legal conveyancing costs when you remortgage. Not all lenders offer this but most of the mainstream lenders do.
Once the mortgage application has been approved, the valuation meets the new lender approval they will issue a mortgage offer. You should read this carefully but we will contact you to discuss this in more detail.
Unless there are any issues the lender will pass the case onto the legal team who will complete on the transaction and pay what is owed to your previous mortgage lender if there is one.
If you a raising capital for home improvements or for another reason the solicitor will arrange for you to receive the funds.
You can read more about our mortgage process in more detail here
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