Remortgaging Fact Sheet
There are several reasons why you may want to remortgage, including to save money with a better deal, to free up some funds or to move to a more appropriate mortgage if your circumstances have changed.
How can I save money by remortgaging?
There may be a mortgage out there with a lower interest rate to the one you are paying, which means you’d pay less in repayments each month.
How can I raise money against my house?
If you need money to pay for home improvements or to help out your children with wedding or university funds, then you can remortgage your home to free up some money. You may decide this a more suitable option than taking out a separate loan.
How could a more appropriate mortgage help me?
If your financial circumstances have changed, you may wish to pay a higher or lower amount each month or move to a fixed rate mortgage. Remortgaging can help you do this.
At Jordan Lynch, we have access to the whole of the mortgage market and understand the complexities of every individual situation, so we will be able to recommend the most suitable remortgage option for you.
How much will it cost?
When you remortgage, you may have to pay an early repayment fee to your existing lender and a mortgage arrangement fee to the new one. You may also need to pay a valuation fee and legal costs.
Bear in mind that your monthly repayments could increase if you are borrowing more money or moving to a higher interest rate.
Jordan Lynch will advise you of all the costs, interest and fees involved before you go ahead with your application to help you budget accordingly and make a well-informed decision.
How do I remortgage?
The process is much the same as buying a property. First of all, you get a mortgage agreement in principle based on the information you provide and you will typically receive a decision within a few hours.
Next, you apply for the mortgage and supply any paperwork requested, then you wait for the mortgage to be approved. Meanwhile, a solicitor will deal with the conveyancing and a surveyor will carry out a valuation of your home. The whole process usually takes around two to four weeks.
Other things to consider
Think about how your situation may change in the future. Perhaps you plan to move house within the next few years or will want to remortgage again. Look at the portability, flexibility and early repayment fees involved with your new mortgage to ensure you’re happy with the conditions.
Carefully consider the costs mentioned above and ensure you can afford them. If you are remortgaging to save money, it is advisable to factor in all the costs involved before deciding if it’s worth it. Jordan Lynch will provide clear details of all fees and repayments to help you with this decision.