Remortgaging is traditionally the best way to ensure you are paying the lowest interest rate for you mortgage whilst reducing your monthly mortgage payments. Remortgaging is also an effective way of making changes to your mortgage and taking advantage of competitive deals available from the mortgage lenders.
With the average mortgage term lasting 25 Years and ‘initial deal’ terms lasting on average between 2-5 years, most borrowers would almost certainly need to remortgage at least a few times during the lifetime of their mortgage term to ensure they are paying the least costs for their mortgage.
There are lots of benefits of Remortgaging [see key remortgaging benefits below], it does however come with some caveats. You are essentially moving your mortgage from your existing mortgage lender to a different mortgage lender – the new mortgage lender will treat this as a ‘new’ mortgage and carry out all the necessary checks as if this was a new application.
The process is somewhat streamlined, such as fewer legal searches, quicker turnaround times and possibly lower upfront costs. To further entice you to move away from your existing lender incentives may be on offer such as, free legal fees, free valuations and lower arrangement fees.
The remortgage process usually takes between 3-6 weeks.
|Key Benefits||Key Drawbacks|
|〉Borrow more (raise capital)||〉Can take on average 3-6 weeks|
|〉Change mortgage parties||〉May have to pay broker fees*|
|〉Change Term||〉Arrangement fees are applicable|
|〉Get access to a better/different deal||〉Solicitors fees payable*|
|〉Move away from lender (unhappy customer)||〉Valuation fee payable*|
|〉Change type of mortgage||〉Will need to provide supporting evidence (income etc..)|
|〉Change payment method (interest only)||〉Full application will need to be made|
|〉Access fee free products*|
|Free valuations may be available*|
|〉Free legals may be available*|
But wait ! there is another option instead of Remortgaging – you absolutely must read our Mortgagage Switching / Product Transfer guide, this may well save you a lot of pain a 〉nd costs〉achieving the same results as remortgaging.
You can also try our combined Remortgage / Product Switch Calculator and we will tell you exactly how much you can save from both options.