How does the remortgage process work?
The six steps of remortgaging
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 current 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. Consider all the costs
To make sure remortgaging leaves you better off, check whether the lender you plan to move your mortgage to charges any of the following:
Application fee - a charge to set up your new mortgage. Also known as an arrangement, product, or booking fee.
Valuation fee – to confirm the value of your property.
Solicitor’s fee – a solicitor will need to manage the transfer of your mortgage.
Ask any prospective lenders if you’d need to pay an exit fee or early repayment fee if you want to remortgage again in the future.
4. Complete an Agreement in Principle
Most lenders will let you get an online Agreement in Principle (AiP), or Mortgage in Principle (MiP). This pre-approval gives you an idea of how much you might be able to borrow without a full credit check, helping you understand your options without committing to a specific remortgage deal.
5. Check and accept your remortgage offer
Before submitting your official 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.
Once you have reviewed and accepted your offer, your new lender will carry out a credit check to confirm your current financial circumstances and arrange for your property to be valued.
6. Find a conveyancer to complete the legal work on your behalf
You’ll need to choose and instruct a conveyancer, as they will be required 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.
Your chosen solicitor or conveyancer will handle the transfer of your mortgage. This step is crucial as it legally transfers the mortgage debt from one lender to another, finalising your remortgage process.
Conveyancing quote for your remortgage
Get a personalised quote today for your remortgage to see how much it may cost.
By understanding each of these steps and preparing accordingly, you can ensure a smooth transition to your new mortgage terms, avoiding any surprises along the way.
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