A recent study by Trussle – the online mortgage broker, revealed that one in six homeowners (16%) are currently thinking about remortgaging in the near-term despite the disruption that has been caused by Covid-19.
In the current climate, our team have been asked frequently by both existing clients and via new enquiries about our remortgaging services.
As we are still very much open for business and able to progress all conveyancing matters including a remortgaging agreement, we can help those looking to remortgage their property at this difficult time, however, we also want to ensure that it is the right decision for you.
In this blog post, our remortgaging experts explain what remortgaging is, what the benefits are, as well as the key aspects of remortgaging that you must consider before remortgaging your property.
With that, let’s dive into the details.
What is remortgaging?
Remortgaging essentially is the act of taking out a new mortgage that pays off what you owe on your existing mortgage, using your property to secure the transaction.
By taking out a new mortgage, this doesn’t mean you have to purchase another property, instead, the new mortgage is secured against the property that the original mortgage was taken out on.
Remortgaging can be completed either with your existing lender, or you may remortgage using another lender.
There are a host of benefits that remortgaging can allow you to benefit from and it is becoming increasingly popular in the UK as highlighted by Martin Lewis who revealed that around a third of all home loans made in the UK are actually remortgages.
Why should I remortgage?
This is a question we frequently encounter when discussing property transactions with our clients and there are several reasons why you may benefit from remortgaging, chief of which is the fact that you may be able to save yourself a considerable amount of money.
Save yourself money
If your current mortgage deal’s promotional period is about to end or you’re worried about your interest rates increasing, then remortgaging could be more cost-efficient and give you peace of mind that you are saving money.
Bear in mind that you are not obliged to look for a deal with your current lender, you can opt to switch to another lender, and so we encourage our clients to shop around for the best deal.
Likewise, we also advise that you look at all the options available to you if you are looking to save money by remortgaging.
Some deals may be suitable for those looking to lower their monthly repayments, whilst others may be more suitable for those looking to save themselves money in the long-term by paying more monthly over a shorter period of time.
If you are struggling to decide which option is right for you, a chat with our team can help point you in the right direction.
You’re looking to borrow more money
Got a renovation project you’ve been meaning to complete? Perhaps you’d love to get that new kitchen fitted, maybe you want to replaster the tired looking walls, but money constraints mean that you can’t manage it.
Remortgaging could free up funds that can enable you to enhance your home and have it look exactly how you imagined it.
You may need money for something else, for example, you may wish to consolidate your debts by using the money you acquire through remortgaging to pay outstanding debts, however, your current lender will not agree to a providing you with more money or they are offering unfavourable rates on the new deal.
Whatever your reasons may be for you needing to borrow more money, remortgaging may be the solution that enables you to secure the funds you need, however, it is essential that you consult with a property law expert, like the members of our conveyancing team, before you decide to remortgage so that you secure the best deal possible.
You want to overpay on your monthly repayments
You may have inherited some money, received a pay rise at work or received a cash boost by other means, which has placed you in the fortunate position where you can repay more of your current mortgage each month, however, your current mortgage agreement won’t allow this.
What do you do?
Remortgaging will allow you to pay off a larger amount and potentially lower your rate as a result, however in some instances, you may need to pay an early repayment fee, so it is important to speak to a conveyancing professional to ensure you are making the best decision for your financial position.
Important things to consider when remortgaging
Use your time and plan wisely
When you’re looking to remortgage a property, ensure you give yourself adequate time to thoroughly research the market and identify the best possible deal.
We recommend beginning your search a few months in advance, this is something our conveyancing team can assist you with, and once your new deal has been identified, our team can get to work and ensure the remortgaging process runs as smoothly as possible.
Make sure your property is valued properly
The value of your property may have changed since your original mortgage was agreed. Ensuring you have an accurate and up to date valuation of your property is key if you want to secure yourself the best possible deal.
If your property has risen in value then you will be a more attractive prospect for potential new lenders.
Use a conveyancing expert
Remortgaging can be a complex process, however, utilising a conveyancing professional that is an expert in this field, such as the conveyancing team at Thorneycroft Solicitors, will ensure that any hurdles you may face will be overcome efficiently, allowing the remortgaging process to be completed as quickly and smoothly as possible.
Our Conveyancing team aims to reduce the confusion surrounding the conveyancing process and will ensure that your remortgaging needs are met and that your new mortgage is registered correctly with the Land Registry.
We’re proud to provide our clients with an unrivalled level of customer service, even during these challenging times and we can assure you that there will be no hidden costs.
Our team will also ensure that you have a full understanding of each stage of the remortgaging process, ensuring you will not encounter any nasty surprises.
If you would like more information about our remortgaging services and how we can help, please give us a call today on 0330 058 0118 or complete our online enquiry form if you’d like our team to contact you at a time that is more suitable for you.
