How does a remortgage work?
See below the steps you go through when remortgaging:
1. Check your current mortgage status
Get in touch with your mortgage provider to get a redemption statement. This will show the amount outstanding on your mortgage, which your new mortgage will have to cover. If there are any outstanding or overdue payments on your current mortgage, they must be repaid at completion.
2. Find a remortgaging deal that best suits your budget and needs
Speak to a mortgage advisor, or research mortgages to shop around and find a deal that suits you best. There are multiple mortgage types such as variable or fixed rate, as well as fixed rate terms, interest rate values and contract terms and conditions.
3. Find a conveyancer to complete the legal work on your behalf
You’ll need to choose and instruct a conveyancer, as they will need to complete the legal work on your behalf. Once you’ve given them permission to begin the process, they’ll check the legal status and title of your home to establish that your property fits the bill for a new mortgage. Find out more about the conveyancing process when remortgaging.
4. Make sure it’s the right time for you to remortgage
Is your fixed rate mortgage coming to an end? Has your property increased in value? Are you looking to release equity? If the answer is yes to any of these, then now might be a good time to consider remortgaging. Find out more about when you should remortgage and when it’s best not to.
5. Check your remortgage offer
Before submitting your application to the lender, one of the most important steps of the process is going through your lender’s mortgage offer. Check all your outstanding and new mortgage figures are accurate, and that your repayment method is correct.
Make sure that you fully understand the terms and conditions of your new offer and all of the remortgaging fees involved.