A simple remortgage can save you money or allow you to release equity from your property to consolidate debts, pay for home improvements, buy a second home, or other big life plans. A lot of great options, but is it a lot of work? With the help of an experienced mortgage broker, it’s really quite easy and can be completed in around 8 weeks. Considering the amount of money you could save by not rolling on to your lender’s default rate, the relatively small amount of effort required is definitely worth your while.
Why Should I Remortgage?
When you take out a mortgage you’ll usually enter a fixed-rate period for 2 – 5 years, during which time your repayments are fixed with a relatively low interest rate. After this period, you’ll get bumped up to your lender’s default rate which will be much higher. On a £150,000 mortgage, this could equal around £3000 more in interest each year!
But you don’t have to accept this; in fact, assuming your property has increased in value and your circumstances haven’t changed, switching to a new lender should reduce your monthly repayments. If you need to borrow more money, remortgaging is a great opportunity to release equity from your home at a low interest rate.
When Should I Remortgage?
It’s a good idea to start looking into your remortgage at least 3 months before your fixed rate period ends. With Michael Usher Mortgage Services, that simply means booking in for your free consultation. This 3-month buffer gives us time to find and organise your new deal and prevents any risk of you ending up on the variable rate. If you’ve left it later though, don’t worry, we can still help you, even if you’re already on the higher variable rate.
In certain situations, it may be necessary or worthwhile to remortgage during your fixed-rate period, but some lenders charge early repayment fees to do this. If you’re thinking of remortgaging early, call us as soon as possible and we’ll advise you on your best options.
How Long Does it Take to Remortgage?
With an experienced mortgage broker, you should be able to complete your remortgage in around 8 weeks. This can be much quicker, or sometimes a bit longer, depending on the complexity of your situation. We recommend that you book your free consultation at least 3 months before your fixed-rate period ends to ensure that you don’t end up on the variable rate. Most lenders will hold your mortgage deal for at least 6 months, so feel free to come to us even earlier if you like to be super organised!
What affects how long it takes?
- Completing mortgage interviews
- Finding the right mortgage for your situation
- The complexity of your circumstances
- Lender’s tasks (including valuation)
- Legal and conveyancing work
How Can a Mortgage Broker Help Me?
Aside from finding the right mortgage product for your situation, potentially saving you thousands each year, your broker will be the glue that holds the process together. There are a few moving parts to a remortgage, but your advisor will take care of most of them for you.
Finding the right mortgage – impartial mortgage advisors, such as Michael Usher Mortgage Services, have access to the full range of products from all lenders. Meaning we can find you the most suitable deal out of all available options. We then complete the application process for you quickly and smoothly, and our customers are nearly always accepted the first time.
Mortgage interviews – these can take an hour or more, and every lender will want one. Approaching each lender individually means you’ll have to fit in multiple interviews around your work and family life. With a mortgage broker, you only need to complete one interview; your advisor will then contact all the selected lenders on your behalf, saving you a lot of time.
Your circumstances – if your situation is slightly complicated then we strongly recommend getting professional advice. Not only will this speed up the process, but it’ll also help you secure the best mortgage available for your circumstances and prevent any costly mistakes.
Lenders and solicitors – amongst other things, your lender will need to carry out an up-to-date valuation on your property. As a remortgage usually involves taking out a new mortgage with a new lender, you will need a solicitor to oversee the necessary legal processes. Your mortgage advisor will communicate with your lenders (old and new), and your legal team, to ensure they have all the necessary paperwork on time and to actively pursue completion on your behalf.
What to Do Next
Talking to one of our mortgage advisors is completely free. During your consultation, we’ll discuss your situation and find you the best products to fit your needs.
If you’re happy with the suggested deal we can complete the application on your behalf and guide you through the whole process. Our typical fee is £495, split into two payments for your convenience. The fee can be slightly higher for complicated cases, but it can also be lower. Your advisor will explain the fee before you have to commit so you can make an informed decision. We’re so confident we’ll find you the right mortgage that all fees will be refunded if you’re not successful, in other words, No Mortgage No Fee!
Remember to come and see us at least 3 months before your fixed-rate period ends if possible. If you’re thinking of remortgaging during your fixed-rate period then contact us as soon as possible so we can help you make the right decision.
We look forward to helping you save money or release equity with a simple remortgage.
