EXPERT REMORTGAGE ADVISOR IN BIRMINGHAM

Remortgaging means getting a fresh mortgage deal for your home, but this time from a different lender. To be eligible for remortgaging, you must already have an existing mortgage in place. Typically, people consider remortgaging towards the end of their current mortgage deal. However, there are situations where you might choose to remortgage earlier than that.

Remortgaging gives you the chance to shrink your loan and possibly secure a better rate. However, be cautious about early repayment charges or exit fees you might encounter. Compare these costs with the savings from the new, lower mortgage. Also, if you're considering switching from an interest-only to a repayment mortgage, remortgaging could be a suitable option.

If you've been diligently repaying your mortgage for several years, it's likely that you've accumulated a significant amount of equity in your property. Remortgaging provides an opportunity to tap into that equity and access cash if the need arises.

Remortgaging is often easier to get approved for, especially if you have bad credit, compared to getting a new mortgage for a different property. The reason behind this is that your existing property acts as an asset, which minimizes the risk for the lender.

When considering a remortgage, keep in mind that there are associated fees that might offset the advantages of securing a lower interest rate. Additionally, the remortgage process typically takes a few weeks to complete, so it requires commitment and patience to see it through to the end.

Remortgage applications are evaluated by lenders based on their specific policies and criteria. As a result, applicants may be declined due to factors such as credit problems, affordability concerns, property value, or other risk-related elements.

Absolutely! You have the freedom to sell your home whenever you wish, provided you can afford it. If you decide to pay off your entire mortgage without purchasing another property, it's essential to ensure that the sale price exceeds the remaining amount on your mortgage loan. This way, you'll be able to settle the mortgage and have some proceeds left after the sale. You can either sell your property and use the sale proceeds to pay off your mortgage or 'port' your mortgage to another property if you are buying again.

Having a low credit score doesn't automatically result in a remortgage refusal. Lenders will assess how you manage your current mortgage payments, how it affects your overall expenses, and what portion of your income is allocated to it. These factors play a crucial role in the lender's decision-making process, and they may still consider offering you a remortgage despite a low credit score.

Contrary to the misconception, a bad credit history doesn't always result in a definite 'no' to a remortgage application. In reality, many homeowners can still secure a remortgage deal despite having credit issues, such as missed or late payments, or being on a debt management plan.

When you remortgage to a new deal with the same lender, it's called a product transfer. Product transfers are generally faster than switching to a different lender and usually require fewer affordability checks.

Remortgaging with your current lender, by moving to a new rate or deal, is referred to as a "product transfer" and doesn't involve any extra legal work. However, if you remortgage with a different lender, you'll need a solicitor or conveyancer to assist with the legal aspects of the process.

On average, the remortgage process typically takes about four to eight weeks from the date of application. However, this timeline is not always guaranteed. Delays or unforeseen circumstances along the way can alter the time frame and may extend the process, making it longer than expected.

To speed up the remortgage process, make sure you have your documents ready beforehand. The broker or bank will typically need to see some or all of the following: three months' bank statements, payslips (or both), and utility bills. If you are self-employed, you may also be asked to provide your last three years' accounts. Being well-prepared with these documents can help streamline the remortgage application.

What's the ideal time to remortgage? It's best to start planning about six months before your fixed rate period ends. By acting early, you can avoid any extra payments and ensure a smoother transition to a new mortgage deal.

Perhaps it's time for a new kitchen, a fresh bathroom suite, or even that dreamy open-plan living extension? Many people choose to remortgage for significant household improvements, as they can be quite costly depending on what you want to achieve.