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Finding you the right remortgage deal
How remortgaging works
We all want the cheapest deal and to pay off our mortgage as quickly as possible. The simplest way of doing this is by making sure you always have the most competitive product suitable to you at all times. You can do this by remortgaging.
Remortgaging happens when you change the mortgage you currently have on your property, either by switching it to a new lender, or by moving to a different deal with your existing lender.
Remember - you are not locked into one mortgage for life. It’s something that can be reviewed every few years, or when circumstances change, in order to help make your mortgage work for you.
There are many reasons you might decide to remortgage. This could be because:
- Your mortgage term has come to an end, and you’re about to be put onto a lender’s standard variable rate - which often is costlier
- You need cheaper monthly payments because of additional commitments
- You’re currently on a variable rate mortgage and you want payment stability
- You have received money and would like to pay off a lump sum of your mortgage with it
Reduce your overall monthly payments
If you require cheaper monthly payments and would benefit from freeing up some of your money month-to-month, your mortgage can be extended out over a longer period of time.
Increase your overall monthly payments
If you are in a position to do so, remortgaging allows you to reduce your mortgage term down from 23 or 22 years to 15 or 10 which in turn would increase your monthly payments. This means you would get your mortgage paid off earlier, putting you in a better financial position in the long run.
What is the process of remortgaging?
Stage one - the fact find
Speak to our remortgage advisors here at Mortgage Light and we’ll firstly work with you to complete a fact find. This allows us to get an idea of where you stand financially by assessing factors such as your incomings and outgoings.
All we need is:
- 3 months wage slips & proof of any commission or bonuses
- 3 months bank statements
- Proof of ID & proof of address
- Mortgage Statement
We will then advise you of your options and help you decide on your preference.
Stage two - get the offer
Once we’ve found you the right deal, we will complete a decision in principle with the recommended lender and submit your application. The lender will do their valuation (often remotely without needing to go to the property), and assess the documents needed for the application. If everything is accepted, an offer will be issued.
Stage three - mortgage activation
The solicitor paperwork is complete and a date is set for the new mortgage product to be activated. If you’re remortgaging to pay off a Help to Buy loan, there’s an extra stage in the process. Check out our Help to Buy remortgaging advice.
When shouldn’t I remortgage?
Remortgaging is not right for everybody. There might be circumstances where it would be best not to remortgage. This could be if…
- Your mortgage debt is really small. You would be less likely to make a saving due to the fees
- Your financial circumstances have changed. Strict mortgage rules mean lenders need to see evidence of your income so if one person in the household has stopped working or you have become self-employed, you may no longer fit into a lender’s criteria and your option may be a product transfer with your current lender
- Your home has dropped in value. This is because the amount you owe on your mortgage will be larger than your home is worth
- You’re already on a great rate. However, it’s always worth shopping around to make sure this is the case - now and in the future
How Mortgage Light can help
At Mortgage Light, we will keep in touch with you and help review your mortgage product as it comes up to renewal. We can advise you of your options on the market and look into whether it is best to move your mortgage or not.
When it comes to remortgaging, Mortgage Light can help you to:
- Consider the number of years you have remaining on your mortgage
- Assess your monthly payments
- Research your interest rate options
- Look into raising money for an extension, or consolidating your debts
- Provide you with security and peace of mind by getting a longer fixed rate
We make this easy for you. Simply contact us to arrange to come in and discuss your needs. If you’re pushed for time, just give us a call and we will be able to go through your options in a quick chat over the phone.