Tips for remortgaging

Remortgaging can be a powerful financial tool when used wisely. It can help you save money, reduce monthly payments, or unlock equity from your home. However, the process can be complex and making an uninformed decision can lead to unnecessary costs. Here are some top tips for remortgaging in the UK.

1. Understand Why You're Remortgaging

The first step in the remortgaging process is to clearly define your reasons for doing so. Are you looking for a better interest rate, needing to release equity, or hoping to change your mortgage type? Your reasons will shape the kind of deal you should be looking for.

2. Start Early

Start considering your remortgaging options three to six months before your current mortgage deal ends. This gives you ample time to research and prevent slipping onto your lender's standard variable rate (SVR), which is often higher.

3. Check Your Property's Value

Your property's value has likely changed since you got your original mortgage, which can impact your Loan to Value (LTV) ratio - a significant factor in the interest rates available to you. Consider getting an updated property valuation.

4. Review Your Finances

Before approving a remortgage, lenders will assess your income, outgoings, credit score and any changes to your circumstances since your last mortgage application. Ensure your credit score is in good shape and be prepared to demonstrate that you can comfortably afford repayments.

5. Consider Mortgage Broker Services

A mortgage broker can help you navigate the vast array of deals available and can access offers not available to the general public. They can also guide you through the application process, making it less daunting.

6. Watch Out for Fees

While a remortgage can save you money over the long term, there can be significant upfront costs, including exit fees from your current lender, arrangement fees for the new mortgage, valuation fees and legal costs. Make sure to factor these into your calculations.

7. Protect Your Mortgage

Life is unpredictable, so consider getting an insurance policy that could cover your mortgage payments in case of unforeseen circumstances such as job loss, illness or injury.

8. Think About Overpayments

If you're remortgaging to reduce your monthly payments, consider a mortgage that allows overpayments. This way, you can pay more when you're able and reduce the overall term of your mortgage or potentially reduce monthly payments in the future.

9. Seek Professional Advice

The process of remortgaging can be complicated, with numerous factors to consider. It's often advisable to seek the help of a financial advisor or a solicitor to ensure you make informed decisions. We’re happy to help those looking to remortgage, and you can get in touch with us here.

Final thoughts

Remortgaging is a significant financial decision and should be handled carefully. By planning ahead, understanding your needs and seeking professional advice, you can navigate the process successfully and secure the best possible deal. And remember, the lowest interest rate doesn't always mean the cheapest deal - make sure to consider all fees and the mortgage terms. With the right preparation and advice, remortgaging can provide substantial financial benefits.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Approved by In Partnership FRN 192638 23/08/2023