What does remortgaging mean and how does it work?

What does remortgaging mean and how does it work?

Have you considered whether now is the right time to remortgage? Whether you’re planning home renovations and want to release equity from your house to fund it or you just want to reduce your monthly mortgage payments by switching onto a better deal, it could be the ideal time to act.

So read on to find out everything you need to know about remortgaging. And once you’re armed with the facts, you’ll see remortgaging is a simple process that could bring you big rewards.

 

What does remortgaging mean?

Put simply, remortgaging is when you switch your mortgage on your current home from one lender to another. Your new mortgage will then replace your old one.

It’s all about shopping around to make sure you’re on the best deal for you. It’s a bit like when you’re comparing deals on a mobile phone or home insurance; you’ll want to make sure you’re getting what’s right for you at the lowest cost possible. And when it comes to remortgaging, the savings could be huge; depending on your circumstances you could find you save hundreds of pounds a month on your mortgage payments by remortgaging.

 

Why remortgage?

With mortgage terms typically lasting for 25-30 years, or even longer in some cases, you’ll probably find that your circumstances change over the years.  

So while saving money on monthly mortgage payments is one key reason why many people remortgage, you can also remortgage in order to better suit your current financial needs.

Here are some other reasons why people remortgage:

  • Wanting to release equity for home improvements
  • Releasing equity to pay off debts
  • Wanting to make more overpayments on your mortgage than your current deal allows
  • Your current deal is up for renewal

 

How does remortgaging work?

Just like when you apply for a mortgage, lenders will want to see that you’re a low-risk borrower. So you’ll need to provide copies of your bank statements and lenders will check your credit report too. It’s a good idea to check your credit reports yourself first.

One factor to be aware of is that your current lender may charge fees such as an early repayment charge if you end your mortgage term early. So it’s a good idea to get advice from an expert mortgage adviser. It may be that you’ll still be able to save money even if you have fees to pay; they’ll be able to run through the figures with you.

 

How much could I borrow?

If you’re curious about how much you would be able to borrow, then use our handy mortgage calculator to get an idea.

And to find out about what mortgage deals are available, speak to one of our expert mortgage advisers for a no-obligation chat. Whether you’re looking to save money by moving onto a better deal or if you want to release equity from your home, our advisers can help you make the right choice for you - so get in touch today!

You may have to pay an early repayment charge to your existing lender if you remortgage.

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We’re here to help - Providing support and guidance whether you a first time buyer, looking to move home, remortgaging with additional borrowing or just looking to secure another competitive mortgage deal

Bishop & Co Mortgage Services is part of one of the UK's leading award winning mortgage and protection brokers


Why Bishop & Co Mortgage Services stands out from the rest:

• We search thousands of mortgage deals to find the right one for our customers' circumstances and needs

• We can provide face to face and telephone advice for our customers

• We can offer flexible appointments times

• We pride ourselves on our professional Premier Mortgage Service, which does not stop when the mortgage has completed

• We continue to offer an ongoing service to our customers by advising them on family, home and income protection so that they are covered against the unexpected

• We provide a full range of lifestyle and income protection cover to protect you from the unexpected

• We feel that keeping in touch is a good thing to do to ensure our customers are kept abreast of developments in the mortgage world

• We help our customers understand the benefits of paying off their mortgage debt as quickly as possible so they can become financially free to enjoy an early retirement!

Because we play by the book we want to tell you that…

Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
The fee is up to 1% but a typical fee is £499.

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