If you own your own home and would like to stay in your property but move to another mortgage plan with a new lender, this is what is known as remortgaging. Many people remortgage their property at the end of their fixed term deal, usually between 2-5 years after taking out their mortgage to avoid reverting to the lenders Standard Variable Rate (SVR) and save money.
If you are coming to the end of your mortgage deal term, you might be wondering if now is the right time to remortgage, here’s everything you need to know.
Why Re-mortgage?
You can save on your monthly mortgage repayments. Remortgaging your property gives you the chance to look around at the different mortgage deals, pick the right one for you and enter a new fixed rate mortgage. If you have had your mortgage for a while then that means you have had chance to pay of a large portion of your original mortgage which could mean a lower interest rate with your new mortgage provider. Current property prices will also be taken into consideration.
When Can You Remortgage?
You can re-mortgage any time after 3- 6 months of acquiring a mortgage on a property depending on the lender but it’s not advisable to do so as this could actually end up costing you more when early repayment fees are taken into account. The best time to remortgage your property is when your fixed rate term is coming to an end or has ended and you want to secure a better deal to lower your monthly payments.
How Does Remortgaging Work?
Remortgaging works in much the same way as your first mortgage in that you approach a new lender who carries out all the same processes as your previous mortgage lender. If your application in successful, your new lender will effectively buy you out of your old mortgage and you will continue to pay your mortgage to your new lender at a better rate than your previous one.
How Long Does Remortgaging Take?
As a guide, the remortgaging process usually takes around 4-6 weeks but as with any mortgage, it’s always a good idea to have everything ready before you start. Just like when you applied for your current mortgage, your new lender will want to see a good employment record and financial history, bank statements and a recent credit report.
If you would like to work out how much your new mortgage is likely to cost in the long run, we have a handy mortgage calculator on our website here https://www.holdencopley.co.uk/mortgage-calculator/ and if you would like more tailored advice around your individual circumstances our mortgage advisors are on hand to help, just book an appointment with our team here.