When it comes to remortgaging, you may think it’s one of the most daunting tasks in existence! – But fear not, we’re here with you every step of the way!
The most important part to any remortgage is leaving enough time. If you’re changing lenders, you need to allow time for the new application to be submitted, underwritten, offered and then for the money to change hands.
A remortgage still requires a small amount of legal work so allowing some time for this is essential. As we know, timescales vary so much from lender to lender and between different Conveyancing firms so the more time you can give it, the better!
As most lenders’ offers are valid for 6 months, the ideal time to get things going is around 6 months from your current deal ending.
A basic walk through of the steps involved in remortgaging a property are:
Step 1 Assess your current mortgage in detail (outstanding balance, the current interest rate, the end date etc) and drop us a message. We’ll walk you through the details we need from you (personal information, income details,outgoings etc) and have a chat about your situation and your ideal outcome from the remortgage.
Step 2 Once we have the info needed, we’ll take to the market and recommend the best mortgage that meets your needs. We’ll compare that to what your existing lender can offer you as well and take you through the full details, making sure everything is broken down for you before sending over the paperwork. We’re on hand for any questions that you have or to explain anything if it doesn’t make sense.
Step 3 Once you’re happy with everything we’ll be able to explain the next steps in securing that deal for you. We’ll need a few documents from you (ID, income proof and bank statements) and maybe a couple more bits depending on the lender and your situation. But once we have everything we need, we’ll submit the application to the lender and take it from there.
Step 4 Once the application has been submitted it enters into the standard underwriting process. So a credit check, a valuation of your property by the new lender and an underwriter will make sure everything we’ve told them about you is correct. Once they’re happy, the offer will be issued.
Step 5 Once we’ve checked the offer is in line with everything expected, we’ll send it over for your full review. It’s important that you understand everything so be sure to let us know if there is anything you need explaining (as lenders tend to overcomplicate even the simplest of sentences!). Completing the remortgage process comes down to the Conveyancer acting on your behalf so time to liaise with them and make sure the new deal kicks in the day after your existing deal ends.
Your new lender will then pay off your existing mortgage loan and you’ll begin making repayments under the new terms once complete.
Remember, remortgaging can be a hugely beneficial financial move, but it’s essential to speak with a reputable mortgage broker who can guide you through the process with accurate advice and timescales.
As most mortgage offers are valid for 6 months, that’s the ideal time to get going with a remortgage. Some lenders will still only allow you to switch rates with them, 3 months from your current deal ending but it’s something we’ll go through with you if your best option is to stay put with your current lender but it’s not time yet.
The last point to cover is the all important question, “What if the rates improve after my offer is issued…can I change deals?” In short, yes you can!
If, for example, there’s still another 3 or 4 months to go, but you have a new mortgage offer, then you’re in about the best possible position you can be! Should rates increase, you’re unaffected as your offer is in hand. If however, they do reduce, then we can just get in touch with the lender and have them change the mortgage offer to reflect the new lower rate. An absolute must, given that it’s money back in your pocket!
