Remortgaging: Everything You Need to Know

As mortgage brokers, we have helped lots of our Nook family members to remortgage their property. There are lots of benefits to remortgaging, but if you don’t know what it is it can seem a bit overwhelming. Don’t worry – we’re here to help! Let’s start with the basics…

What is a remortgage?

Basically, when you remortgage you move your current mortgage to a new mortgage lender, or you get a new mortgage deal with the same lender.

Why should I remortgage?

The main reason you would choose to remortgage is to save money. When your current mortgage deal comes to an end, it automatically flips onto a standard variable rate which tends to be higher. It’s crucial to remortgage every time your fixed rate deal comes to an end in order to save money. Remortgaging can reduce your current interest rate, reduce the amount of years remaining on your mortgage, or it can simply help you free up extra cash for things like home renovations, a wedding, a dream holiday, or if you want to consolidate debt.

So when should I think about remortgaging?

We always say to come to us around four to six months before your current deal is due to end. This way we have enough time to get your new mortgage deal in place before the current one expires.

Can I stay with my current lender?

We often get asked this question, and the answer is yes. This is what’s called a ‘Product Transfer’. We always look at both options – is it better for you to stay with your current lender, or switch to a new one? By looking at all of the products available, we can see who best meets your needs.

What if I want to remortgage whilst I’m still in my fixed rate deal?

This is possible! However, there will be penalties to pay i.e. an early repayment charge. We always assess your options and consider if it’s beneficial to pay the penalties and move to another deal, or stick with your current rate.

Does my property need to be valued again?

Yes – when we look at remortgaging your property, a valuation does need to be carried out so we can ensure that we’re putting down the correct valuation when applying for your new mortgage. This is either done online, or in person.

Do I need a solicitor for a remortgage?

You always need one for a remortgage – you can either use an external solicitor, or most providers do offer free legal services. The solicitors take care of all of the legal work in removing your current lender off your property deed, and replacing it with your new lender.

After your mortgage offer has been secured, you’ll be contacted by your solicitor who’ll ask you to fill out a questionnaire detailing information on your property, insurance etc. Each solicitor has a different process, but you can rest assure that you’re in good hands with us! Our Customer Relationship Managers Ostin and Andy are always on hand to liaise with solicitors, and guide you through the entire process.

Is your fixed rate about to come to an end? We’re here to help!