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Remortgaging – when and how to get a new mortgage deal
There are lots of good reasons to get a new mortgage – to reduce your monthly payments, get a different type of mortgage or borrow more money. A Mortgage Broker like Total Home Loans can make it painless and worthwhile.
What is remortgaging?
Remortgaging just means getting a new mortgage, often with a new mortgage provider. If you stay with your existing lender but get a new mortgage deal, it can be called a Product Transfer.
There are lots of reasons you might want to get a new mortgage.
Reasons to remortgage
The situations where you might remortgage include:
- Your current deal, especially a fixed rate period, is ending soon.
- You want to borrow more – e.g. for home improvements or to pay debts.
- You want to change from an interest-only to a repayment mortgage, or vice versa.
- You’re worried about interest rates going up. A fixed rate mortgage will stop rate rises putting up your payments.
- Interest rates have dropped, so you’re remortgaging to get a better rate.
- Your home has gone up a lot in value. That gives you a better loan-to-value ratio, which might mean better rates.
- You want to overpay but this isn’t possible on your current deal. Overpaying can help you pay off your mortgage early.
- You want a more flexible mortgage.
When is remortgaging not a good idea?
There are some circumstances when remortgaging might not be advisable:
Your financial situation has changed
If your income has decreased you may not find a mortgage offer as good as your current deal.
You don’t have much more to pay
If you just have a few thousand pounds left on your mortgage, changing deals won’t change your payments much. You could remortgage to borrow more money, however.
Your current deal has a high early repayment charge
Lots of mortgages will charge an exit fee if you end it early, typically 5% of the mortgage balance. It’s usually worth waiting until the end of the term.
Your equity is small
If property prices have dropped or you haven’t paid off much of your mortgage yet, you will have a high loan-to-value. It could mean you can’t attract very favourable rates, and are better off staying with your current mortgage.
You’ve had credit problems
If your credit score has fallen since you took out the mortgage, it could be difficult to get a competitive deal.
You’re already on a good rate
If your current mortgage is good value, whether it’s a variable or fixed rate deal, don’t remortgage.
Speak To An Expert
Total Home Loans are a national mortgage broker with whole of market access. Their combined experience of over 50 years in the mortgage and financial services industry means they have an enviable reputation and one which makes them well-placed to find the most suitable mortgage solution for you.
What happens if I don’t remortgage after my deal expires?
When you’re nearing the end of a fixed rate mortgage term, it’s time to shop around. With most fixed deals your initial rate lasts two, three or five years. After that, the mortgage lender will put you on their standard variable rate (SVR). This rate is usually expensive, which will put your payments up.
How can I improve my chances of a good remortgage?
If you have paid off a good amount of your loan and your financial circumstances are broadly the same, getting a remortgage shouldn’t be difficult.
Check your credit and make sure you have up to date ID, such as a passport and driving licence. It’s also helpful to collect recent payslips, bank statements, utility bills and your P60.
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What are the fees for remortgaging?
You might need to pay an Arrangement Fee, which is either a set amount or a percentage of the loan. You can pay this upfront or add the cost to your mortgage. Sometimes there is also a Booking Fee of £100 to £200.
There are usually legal fees too, although they’re free with some lenders. With others you might get cashback which you can put towards the legal costs.
Can a Mortgage Broker help me remortgage?
Getting the right remortgage deal for you means doing lots of research. At Total Home Loans we do all the hard work for you. We will help you save money by finding the most competitive deal for you.
Whatever you want to achieve with your remortgage, we can help. We’ll talk through all the options with you so that you can make an informed decision.
Think carefully before securing your debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
May 31, 2022
Very professional company. I’m 63 Years old and was having trouble sorting any kind of mortgage but Mark from Total Home Loans saved the day. please do not hesitate to contact them first as I wasted a lot of time hunting around for others.
Well done Mark and the team, the number 1 company.
May 16, 2022
Very professional fast efficient service and really caring and genuine people to deal with. They have helped us with our mortgage twice and been great both times.
We wouldn’t hesitate to use them again in future.
May 16, 2022
Thanks to Total Home Loans and their patience, care and understanding, along with their skill and kindness, my partner and myself are now home owners something I never thought would happen,
Please even if you think it’s not something you can achieve give Total Home Loans a call they will work for you.
Again thank you all at Total Homes Loans.
May 5, 2022
Great service, I tried so many brokers but no one could help but Total Home Loans were the only ones who found me a lender. It was really hard to find someone, I went to 8 brokers all found online with there so called promising words trying to bring customers in still no good for me but Total Home Loans got the job done, excellent service, will recommend 💯💯💯 and there was no fee till all applications was complete unlike some brokers.
May 4, 2022
Very happy with my experience with Total Home Loans. Very professional company, were always quick to reply and action whatever was needed.
Will definitely be back! I’ve already recommended them to a friend and they had the same positive experience that I had.