Remortgage

What is remortgaging ?

Remortgaging means to change the mortgage you currently have on your property. This can mean either moving to a different deal with your existing lender or switching to a new lender entirely. It is a good way of finding lower interest rates than you may have on your current deal.

Why should I remortgage?

There are four key reasons to remortgage your property:

• If you are paying a high interest rate – Switching to a fixed or tracker interest rate on your mortgage could lower your monthly payments and help you pay off your mortgage sooner.
• You want to pay off your mortgage early – By switching to a mortgage that lets you make over-payments you can pay off your debt earlier than your original term.
• Your current mortgage deal ends soon – If your deal ends soon then you can move to the lender’s standard variable rate. This rate is often higher and so this is a good opportunity to look for better deals.
• Your property has increased in value – Remortgaging can allow you to borrow for home improvements, further increasing your property’s value. A lower loan to value ratio might mean you meet the criteria for a wider range of interest rates.

How does the remortgage process work?

Considering your financial situation as a whole is vital in the remortgage process as well as understanding what happens when you remortgage. There are four key steps:

• Complete an Agreement in Principle – Most lenders will let you get an online Agreement in Principle in order to see if a lender is willing to lend you what you need. This will help you understand your options without choosing a specific deal.
• Considering the costs – It is important to make sure that a remortgage will leave you in a better position. Therefore, it is essential to consider costs such as application fees and valuation fees in the process.
• Applying for a new mortgage – Once you have your Agreement in Principle, you can now apply for a new mortgage. You will be asked for various personal and financial information in addition to the details of your current mortgage.
• Completing your remortgage – Your new lender will carry out a credit check and arrange to have your property valued. PLS can help you with the transfer of your mortgage and complete the process.