Remortgaging for the first time ever, or need a refresher on the process? We’ve got you covered. When it comes to remortgaging, getting organised is key, as you can lock in a new rate up to 6 months before your current one ends. The remortgaging process should take around 4 to 8 weeks to complete, but there’s a lot that can happen in that time. Here’s our breakdown of how to remortgage, step by step!
Step 1: Work out how much you owe
Start by asking your current lender for a redemption statement. This sets out the amount you have left to repay on your mortgage, which is the amount you’ll need to borrow when you remortgage. Your redemption statement will also show any early repayment charges or exit fees you’ll need to pay if you’re leaving your current mortgage deal early – make sure to factor these into your decision.
Step 2: Get a new Mortgage in Principle
Chances are that your financial circumstances have changed since you first took out your mortgage deal. Maybe you’ve had children, had a pay rise or have taken out a loan – it all impacts the amount you can borrow. Getting a new Mortgage in Principle is a great way to check how much you can borrow now. It’s free, takes less than five minutes and won’t affect your credit score – you can get a Mortgage in Principle in the Moneybox app!
Step 3: Speak to your mortgage broker
Next, it’s time to shop around for a new mortgage deal. If you’re remortgaging with your current lender, it’s considered a ‘product transfer’ – this is the more straightforward route, as you don’t need a solicitor. But, you might miss out on a much better deal on the open market! At Moneybox Mortgages, expert brokers can help you with your product transfer, or compare thousands of deals from over 90 lenders to find the right mortgage from other lenders. Book a free appointment with the team in the Moneybox app.
Step 4: Apply for a mortgage
It’s time to get your remortgage application underway, so make sure you’ve got all the right paperwork to hand! You might have to pay an application or booking fee to your new lender. Just like last time, you’ll need to provide proof of ID, proof of address and proof of income. Your broker will confirm the exact documents they need, based on your situation. Then, they’ll get your application underway!
Step 5: Your lender carries out their checks
Your lender will run a hard credit check to decide if they’re happy to lend to you, based on your credit history. They’ll also organise a property valuation to check the current market value of your home, but you might not see a copy of this, so be sure to get your own estimate on Rightmove or Zoopla. Look out for an exciting email confirming your mortgage offer!
Step 6: The legal work (conveyancing) happens
Your solicitor will ask you to sign and return your new mortgage deed, to confirm that you’re happy with the terms of your mortgage offer. The quicker you return this to them, the quicker your remortgage will go through! Next, they’ll organise searches with the local council and check the title deeds of your property.
Step 7: Completion – you’ve remortgaged!
It’s time to seal the deal! Your solicitor will use the funds from your new mortgage to pay off your current mortgage. Next, they’ll register your new mortgage at the Land Registry. Keep an eye out for a letter from your lender, confirming your new repayment amount going forwards. You’ve officially remortgaged!
You may have to pay an early repayment charge to your lender if you remortgage.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Moneybox Mortgages is provided by Moneybox Mortgages Ltd.
