How do I remortgage? – a quick guide

In many respects, remortgaging is similar to taking out a brand new mortgage – although having lived in your home for a few years, you should have a history of payments, and therefore lenders’ confidence, on your side.

That said, remortgaging can still be a tricky and potentially time-consuming process. For that reason, it pays to take the right steps to ensure you get the best remortgage deal.

Here are a few quick tips for making sure you get the most out of your remortgage deal.

Get expert advice

Currently, the biggest obstacle to getting a good remortgage deal is that there are fewer deals available than there were only a few months ago. That’s why it’s a good idea to speak to an independent mortgage adviser. By seeking expert mortgage advice and speaking to somebody who knows the market, you will greatly increase your chances of getting the best remortgage deal possible.

But remember: you should always speak to an independent mortgage adviser, rather than one belonging to a specific lender – this way, you can ensure you can compare deals from a range of lenders and benefit from competitive rates.

Prepare well

It may be a cliché, but preparation really is the key to success. By knowing in advance what you have now and what you want in the future, you improve your chances of getting a good remortgage deal.

Start by making notes of all your current costs – how much your monthly payments are, how much you are paying in interest, how much of your mortgage you have left to pay, how long you have left to pay, etc. By doing this, it’s easy to compare your current costs with any new remortgage deals you may be offered.

It will also give you a good idea of how much money you have to spare if your payments were to rise.

Consider all costs involved

Remember that when you remortgage, your new monthly payments are not the only cost to you. You may well incur a number of additional costs, such as a mortgage arrangement fee (mainly for fixed-rate mortgages), insurance, and any valuation/legal fees.

Try to ensure you can afford these extra costs before you begin the remortgage process, as some may have to be paid up-front.

Don’t rush

With such an important financial commitment, it’s important that you take your time when you remortgage. Start looking for your mortgage deal around three months before your current mortgage expires – that way, you have more time to find the best deals, and you shouldn’t feel rushed at any point.

How do I remortgage if my credit rating is poor?

A poor credit rating will not necessarily stop you from getting a remortgage. Your status as an existing homeowner may reassure mortgage lenders that you are a reliable borrower, and since mortgages are secured against your home by default, the overall risk to the lender is relatively low.

If your credit rating has worsened since you first took out your mortgage, you may find that the interest rates you are offered are higher – but an expert mortgage adviser will be able to search a number of products and providers to ensure that any rise in monthly payments is as small as possible.

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Think Money work with a panel of lenders to offer a range of mortgages. If you are considering taking out a mortgage, contact one of our expert mortgage advisers today.

Related Resources:

• Remortgages
• Mortgage Advice

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