Remortgaging: A Customer’s Guide

Remortgaging can seem daunting, but it doesn't have to be. This guide breaks down the process into clear, manageable steps. For existing clients, the process can be even more streamlined! Generally, the entire process takes around 6-12 weeks from start to finish.

The 9-Stage Remortgage Journey

Stage 1: Initial Review

This initial assessment is crucial. We'll review your current mortgage terms, assess your financial situation, and determine your goals for remortgaging. Starting early gives you ample time to explore options and secure the best possible deal.

• Gather your existing mortgage details.
• Update your income, employment, and commitments.
• Act 3-6 months before your current deal expires.
  

Stage 2: Researching the best deal

This is where we find the most suitable mortgage for your needs. We'll compare offers from various lenders, weighing up interest rates, fees, and incentives. We'll also explore the possibility of borrowing additional funds or adjusting your mortgage term.

• Compare lenders and products.
• Check Re-mortgage with new lender vs Rate Switching with current lender.
• Consider rates, fees, and incentives.
• Discuss additional funds or term adjustments.
  

Stage 3: Agreement in Principle (AIP)

An Agreement in Principle (AIP), also known as a Decision in Principle (DIP), provides an indication of how much a lender is willing to lend you. This stage involves affordability assessments and credit checks to ensure you meet the lender's criteria.

• Run a Decision in Principle for new lenders.
• Handle affordability and credit checks.
  

Stage 4: Mortgage application

Once we've identified the right mortgage for you, we'll submit a full application to the lender. This involves providing detailed financial information, including payslips, bank statements, and identification documents. We'll handle communication with the lender throughout the process.

• Submit the full application.
• Liaise with the lender.
• Provide payslips, bank statements, and ID.
  

Stage 5: Valuation & checks

The lender will conduct a valuation to confirm the property's value. This is usually arranged by the lender and may be free of charge. They will also review your application in detail to ensure everything aligns with their lending criteria.

• Lender reviews application and confirms property value.
• Valuation usually arranged by the lender and often free.
  

Stage 6: Legal process

Lenders will often give you two options when it comes to the legal side of a remortgage. You can either use the solicitor they appoint, in which case the legal work is typically covered at no cost to you, or you can choose your own solicitor and receive cashback from the lender to help cover some or all of those fees. Many clients prefer to instruct their own solicitor and take the cashback option, as it can offer a more responsive and personalised service. It also means I can liaise directly with the solicitor for updates, helping to keep communication clear and the process moving smoothly.

I work with a number of trusted solicitors and would be happy to recommend one if you’d like to explore that option.

• Instruct a solicitor (cashback or free legals options).
• Request a redemption statement.
• Prepare necessary paperwork.
  

Stage 7: Mortgage offer issued

The lender will issue a formal mortgage offer, outlining the new interest rate, monthly payments, loan amount, and all the terms and conditions of the mortgage product. Carefully review this document with your solicitor and us.

• Formal offer confirming new rate, payments, loan amount, and product terms.
  

Stage 8: Completion

On completion day, the new lender will repay your existing mortgage. Your new mortgage deal will then come into effect. If you're borrowing additional funds, these will be released to you at this stage.

• New lender repays your existing mortgage.
• Your new deal begins.
• Additional funds are released (if applicable).
  

Stage 9: After completion

Your new mortgage payments will begin as per the terms of your mortgage offer. Your old mortgage account will be closed. Note that your first payment may be slightly higher due to accrued interest.

• New payments begin.
• Old account closes.
• First payment may be higher.
  

Costs to consider

Remortgaging involves some costs. Here's a summary:

• Early Repayment Charges (ERC): May apply if you leave your current mortgage deal before the end of the term.
• Broker Fees: Fees for our advice and services (we are always transparent about these).
• Valuation Fees: Fees for the property valuation (sometimes free).
• Legal Fees: Fees for the solicitor's services (can sometimes get cashback deals).
• Product Fees: Fees charged by the new lender for the mortgage product.

For personalised advice and to start your remortgage journey, contact us 6 months before your current deal ends. We're here to help you secure the best possible mortgage for your needs.

The Next Steps

Now that you understand the remortgaging process, here's how to move forward:

• Gather Your Documents: Collect your latest payslips, bank statements, and mortgage details.
• Contact Us: Get in touch to schedule your initial review. We can assess your situation and discuss your options.
• Stay Informed: Keep an eye on interest rates and market trends. We'll keep you updated on any significant changes.