Remortgage
Optimise your mortgage terms
Remortgage is the process of replacing your current mortgage with a new one,
usually with a different lender, without moving home. This allows you to benefit
from better terms such as a lower interest rate or more favourable borrowing
conditions.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Why consider remortgaging?
- Reduce monthly payments: Switching to a lower interest rate can decrease your monthly costs.
- Fix your rate: If you expect interest rates to rise, locking in your current rate can protect you from future increases.
- Change mortgage terms: Opportunity to adjust the loan term or switch mortgage types, for example, from a variable to a fixed rate.
- Release equity: Use the increased value of your property to access extra funds for home improvements or other major expenses.
How does remortgaging work?
- Review your current mortgage: Check your existing mortgage terms,
including any early repayment penalties. - Compare new offers: Look at available mortgage products from various
lenders or consult a mortgage broker for advice. - Apply for a new mortgage: Submit your application to the chosen
lender. - Property valuation: The new lender may require a valuation of your
property to assess its current market value. - Legal process: Engage a solicitor or conveyancer to handle the
paperwork and finalise the transaction. - Complete the remortgage: Once approved, the new lender pays off
your existing mortgage, and you start repayments under the new
agreement.
Important points to consider:
- Timing: It’s recommended to start remortgaging 3–6 months before your current deal ends to avoid reverting to the usually higher standard variable rate. (Source: MoneySavingExpert.com)
- Costs: Be aware of potential additional expenses such as arrangement fees, valuation fees, and legal costs.
- Credit history: Maintain a good credit record, as it affects your ability to secure favourable new mortgage terms.
Your home may be repossessed if you do not keep up repayments on your mortgage.
City Mortgages Club Ltd is an Appointed Representative of Rosemount Financial Solutions (IFA) Ltd which is authorised and regulated by the Financial Conduct Authority. Entered on the FCA Register (https://register.fca.org.uk/) under reference 535515. City Mortgages Club Ltd is registered as a Company in England & Wales No. 11711914. Registered Address: 45-55 Commercial Street, London, E1 6BD, United Kingdom.
