All you need to know about Remortgaging

What is a remortgage?

Remortgaging is the process of moving your mortgage on your existing property from one lender to another. Your new mortgage will then replace your old one. You may want to remortgage if you are coming to the end of your existing rate and looking for a better deal than your current lender can offer. You can start the ball rolling 3-6 months ahead and lock in a preferable rate for when you are ready and with interest rates on the rise, this approach could save you money.


Why would I remortgage?

You may choose to remortgage for various reasons, usually to reduce the overall monthly mortgage payment amounts. However, other reasons may include to reduce the size of repayments, to pay off a mortgage earlier, to raise capital and pay for home improvements or even a wedding or a new car. You could also consolidate other more expensive short-term debts. Remortgaging with Manchester Money can be a little like giving yourself a financial makeover or financial health boost.

After your deal (usually two to five years) has ended, you will move onto the SVR – the standard variable rate, which is generally higher. If you like to be sure that you know what your monthly outgoing will be, it’s wise to remortgage to another fixed term.


Why choose Manchester Money to help with a remortgage?

As independent mortgage brokers, we have access to the whole of market, so we are in the perfect position to find you a more favourable deal. We are not biased towards any particular lender, so you can be assured that we have your best interests at heart – and not those of the lender. 

It is not all about facts and figures though. One common trend from our wonderful reviews is our customer service levels and the advice and recommendation that we provide throughout the process which is paramount when taking out such a large financial commitment. You can check them out for yourself on the Trust pilot link at the top of the page.


How do I remortgage?

At Manchester Money, we are here to make the process as straightforward as possible for you. Just fill in the enquiry form or give us a call and we will do the rest.

It’s worth doing a little homework so we have an idea about how much your home is roughly worth, how much you have left to pay on your current mortgage and when your mortgage is due to be completely paid off.

You will also need a Conveyancing Solicitor when remortgaging. We can certainly recommend one for you or you are free to choose your own.


Should I remortgage using my current lender?

You can remortage with your current lender and this is called a product transfer. There are pros and cons to this, examples being: the process could be faster as you are an existing customer with the lender however it may be less likely that you are signing up for the best deal as you are restricted from shopping around. This is where Manchester Money would advise and recommend what deal is best for your circumstances.


How soon can I remortgage?

You can remortgage at any time. But if you're not at the end of your fixed or discount rate term, you might have to pay an early repayment charge. Most people remortgage when they get to the end of their fixed or discount rate term as this is when your mortgage might stop being a good deal. As mentioned earlier, you can start the remortgage process around 3- 6 months ahead of your current deal expiring to take advantage of a rate that we may find for you. The new mortgage would start as your current one ends.


Are there other costs involved when remortgaging?

There may be some associated costs when remortgaging however these are lender dependant and sometimes can be free or off set with cash back incentives. Typically, they are:

  • Arrangement fees
  • Booking fees
  • Valuation fees
  • Legal fees
  • Broker fees

Just to note, if you exit your current deal early, you will have an exit fee and potentially an ERC (early redemption fee), which could be thousands depending on the amount of your mortgage. Again, one of our brokers would explain this in detail to you in order to advise and protect you.


What if my financial circumstances have changed since I took out my current mortgage?

Many people’s circumstances change from year to year but don’t panic. One example may be that you are earning less that you did when you first bought the property, however just because this is the case doesn't necessarily mean you may not be able to remortgage based on affordability. You have to bear in mind that the whole time you have  had your mortgage you have been reducing it, so you won't need to earn as much to replace that loan because it won't be as big as when you first took it out.

There are many variables in life that contribute to a change of circumstances, and this is an ideal example of when to use a broker like ourselves if unsure.


Can Manchester Money help with finding me the best remortgage deal?

Absolutely yes, we can. We’re happy to have a chat and assess your circumstances. We have excellent relationships hundreds of lenders. We will be able to advise on the best product for you and the likelihood of you being accepted for the finance.

The best remortgages deal will depend on many factors. How much do you now earn (in relation to your home) for one? This is known as LTV – loan to value ratio. If you know ahead of time that you are in the market for a remortgage, be aware that credit card bills and car loans for example, can all go against the amount that you able to borrow. Ensuring that you have a good credit score and have a steady amount of disposable income will both be beneficial to you.


Can I remortgage with bad credit?

The simple answer to 'can I remortgage my house with bad credit? ', is yes, but if you have more than a minor problem on your credit score then it could be more difficult to get a remortgage on the high street. You are much more likely to find a remortgage for people with bad credit by using a specialist broker like Manchester Money.

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