Remortgaging is moving your mortgage from one lender to another without moving home.
A remortgage can be for many reasons – maybe you’re coming to the end of your current deal, or your deal’s no longer right for you. Or maybe you want to try to cut costs, or consolidate debts? For some people, remortgaging is a method used to free up some equity in their property to help pay for things like home improvements.
Interest rates can move up and down regularly so you may find that your current deal is no longer as competitive as it was when you initially took it out, so finding a new mortgage deal could help save some money on your monthly payments.
Remember to take any Early Repayment Charges and Fees into account when working out savings.
All existing clients will be written to and advised when deal is coming to an end.
Think Carefully Before Securing Other Debts Against Your Home. Your Home May Be Repossessed if You Do Not Keep Up Repayments On a Mortgage or Other Debt Secured Against It.
Securing short term debts against your home could increase the term over which they are paid and therefore increase the overall amount payable.
Debt consolidation is not always the most suitable option, consolidating debts must be carefully considered. It will usually mean more interest over a longer repayment term and there may also be early repayment penalties on your current mortgage, you should think carefully before securing other debts against your home. There are other ways to manage debt such as free debt advice charities, you can find out more by contacting the Money Advice Service these services may be more suitable for you.
Make an appointment with a Qualified Mortgage Adviser
Bring your latest mortgage statement so we know what your outstanding balance is. It helps if you have a rough idea as to what your property is currently worth. If you have carried out improvements to the property since you bought it then think about getting an estate agent around to tell you it’s current value or compare it to other properties on ‘Rightmove’ and ‘Zoopla’.
Henderson Mortgage Solutions through its knowledge of different lenders underwriting criteria can help calculate what size mortgage you may be able to afford, taking into account your income outgoings and the requirements of different lenders.
Discuss options available
We will help you to determine how much you need to borrow, whether it’s the same amount or an increased amount or maybe you want to make a large over-payment.
Get an Agreement in Principle with a lender
We use our knowledge of lending criteria with Banks to advise you which one to approach. We can then request an ‘approval in principle’, which if issued means that the lender is prepared to consider your application up to a stated amount, based on the information submitted to them.
Many Re-mortgage deals currently include a free basic valuation and will pay your legal fees to transfer, however if this is not the case then a valuation will need to be paid for and a suitable Solicitor/conveyancer must be instructed. We can advise you as to which mortgage option suits you best.
Application Submitted – We will submit the application on your behalf and advise you of any documents required by the lender to support your application, such as:
- 3 months’ pay slips (employed) – 3 years SA302’s or accounts (self-employed)
- Evidence of any additional income such as pension or tax credits/child benefit/maintenance
- 3 months’ bank statements
- Proof of Identity
- Proof of residency
Arrange Insurance
We will discuss with you the relevant protection/insurance policies you may need. We can assess your current policies and the benefits of different plans and policies, provide quotes and arrange the applications to relevant insurers.
Buildings Insurance must be in place prior to completion of the new mortgage – We can email this confirmation direct to your solicitors/conveyancer if arranged with Henderson Mortgage Solutions to help minimise delays at the crucial time.
Application Monitoring
Once the valuation/survey is back and the lender is happy, final checks will be made by the lender and once satisfied they will then issue you a formal mortgage offer. (both you and your Solicitor/conveyancer will receive a copy of this as well as us).
The Solicitor will then liaise with your existing lender for a redemption figure and raise the necessary paperwork with you to complete and confirm a completion date.
Our in-house Completions Manager Kate will liaise with you, your lender and solicitor/conveyancer to help guide the process through to mortgage offer and subsequent completion.
Completion
The Solicitor/conveyancer will repay your current lender and issue a completion statement and any funds owing to you (if you requested a further advance) will be paid.
The Lender will write to you once the mortgage has completed to re-confirm all payments to be made including date or first payment.
Review
Henderson Mortgage Solutions will store the details of your new mortgage and contact you 3 months before expiry of the deal in order to discuss whether you should stay with your current lender and select a new product or switch to another lender who is offering a better deal to new customers.