How To Remortgage
Once you have established why and when you can remortgage, here are the following pointers you can go through to begin your process of remortgaging;
- Dig out paperwork - Find information about your current mortgage deal. Answer questions such as how long have you had it? Type of the mortgage? How much is left to pay? rate and monthly instalments.
- Find a mortgage broker - you can also do this online. A broker will help you figure out if a remortgage can help you save. They can also help you compare a wide range of deals and figure out the complex calculations.
- Update your lender - give your current lender a chance to match the deal the broker finds you just in case they can offer something better..
- You can easily apply online and check your application status online.
- Get a conveyancing solicitor - A remortgage will require you to have a solicitor or conveyancer, to help with the legal side of the process.
How long does remortgaging take?
There are no specific rules on how long it takes, however, a remortgage will take approximately 18-40 days from application to receiving a mortgage offer.
Adding remortgaging fees to your loan
You can either pay the arrangement fees at the time of your remortgage or add them to your loan. The latter is a common choice, but interest will be added to the prices, and they will end up costing more over the lifetime of the mortgage term.
Compare mortgage rates
Whether you have a fixed or variable mortgage, it can be a good idea to consider other lenders who are around before your mortgage deal ends and move to another one if it saves you money.
How much does remortgaging costs?
- Early repayment - this costs typically 3-5% but step down each year by 1%
- Exit fees - these are usually between £50 – £300 depending on a lender for a final closure of your account.
- Arrangement fees - a new lender arrangement fee usually costs around £1000 but can be £1500 or more. These are for arranging your mortgage that includes product fees, admin fees or application fees.
- Legal fees - If there is a charge, it will need to be paid upfront and can’t be added onto the new mortgage. Remortgage legal fees can cost from £300.
- Valuation fees - These will depend on the value of the property as valued by a professional and vetted valuator. Lenders will have their fee scale typically around £200-£300. In many cases, a lender will offer a free valuation.
To get an expert to evaluate your property or if you need a quote, start now and save.