AuthorAndrew Timmins. Archives
February 2025
Categories |
Back to Blog
The 10 most commonly asked questions by homeowners in England regarding remortgaging their home:27/7/2024 1. What is remortgaging?
Remortgaging means switching your mortgage from your current lender to a new one while staying in the same property. It's similar to switching utility providers but for your mortgage 2. Is it a good time to remortgage? The best time to remortgage is typically when your current deal is ending, interest rates have decreased, or you want to release equity from your property. However, it's not advisable if you're tied into a deal with early repayment charges unless the savings outweigh the penalties. 3. How much can I remortgage my house for? The amount you can remortgage depends on factors like your property's value, your income, expenses, and the reason for remortgaging. Most lenders offer products up to 90% of your property's value, with some going up to 95%. 4. Are there fees involved when remortgaging? Yes, remortgaging often involves fees similar to those paid when starting your current mortgage. These may include arrangement fees, exit fees, survey and legal fees, and potentially early repayment charges. 5. How long does the remortgage process take? A product transfer with the same lender can be completed within two weeks. Switching to a new lender typically takes 6 to 8 weeks due to the need for full underwriting, property valuation, and legal work. 6. When should I start the remortgage process? It's advisable to start exploring remortgage options about six months before your current deal ends. This gives you ample time to review options and complete the process without rushing. 7. Can I remortgage if I'm self-employed? Yes, but you may need to provide more information to prove your income. Lenders may look at your contracts, accounts, salary, and dividend income if you have a limited company. 8. Can I remortgage to raise capital for buying another property? Yes, you can remortgage to release equity for buying another property, typically for buy-to-let purposes. However, the process can be more complex if you're planning to let out your current property and buy a new residential property. 9. Do I need a solicitor to remortgage? If you're switching to a new lender, you'll need a solicitor. However, many lenders offer free legal services with their remortgage products. 10. Can I remortgage to consolidate debts? While it's possible to remortgage to consolidate debts, it's important to consider the long-term implications. Although the interest rate may be lower, you'll be paying off the debt over a longer period, potentially costing more in the long run. Additionally, securing unsecured debts against your home increases the risk of repossession if you can't keep up with payments. Ready to Explore Your Remortgaging Options?If you're considering remortgaging your home or have questions about the process, I’m here to help! With over 20 years of experience in mortgage broking, I can provide you with tailored advice to find the best solution for your needs. Fill in the contact form Comments are closed.
|
RSS Feed