What is Remortgage?
In simple terms, it’s a process of transferring your current mortgage into a new and more favourable deal. It usually involves switching to other lender.
Example: Mortgage balance: £150,000; Remaining term: 20 years; Property value: £200,000
Before: Lloyds, variable interest rate 3.99% – monthly payment £908.18
After: Nationwide, guaranteed interest rate (2yr fixed) 2.29% – monthly payment £779.60
It brings a monthly saving of £128.58 which totals £3,085.92 after 2 years.
This example is for illustrative purpose only and may not include all the fees you need to pay.
* Lower monthly payments – gives us immediate and noticeable savings
* Mortgage term reduction – become mortgage-free quicker and pay less in interest overall
* ‘Frozen interest rate’ – guarantee of fixed monthly payments. In particular recommended to those whose current mortgage is on variable or tracker basis and who are concerned about rate movements
* Home improvements – time for kitchen upgrade? Or planning for house extension? – thanks to remortgaging you can create the required capital
* Raising capital to buy other property
* Switching into more flexible and suitable deal adapted to our current circumstances and needs
Remember that your mortgage is a long term commitment and similarly to other financial products (e.g. car insurance) you should regularly review if you have the right deal. Otherwise, it might turn out that you are losing out tens of pounds every month – which in long term calculation could mean thousands of wasted money.
Nowadays a good number of lenders offer their new customers covering the costs of Legal Fees and Valuation, which means that the whole process could be completed without major expenditures and relatively quickly.
Why choose us:
* Dedicated adviser who will lead the whole process from A to Z
* Free initial consultation
* Exclusive offers available through our network Quilter Financial Planning
* Comprehensive service
* Professional help of our expert in optimising your mortgage and choosing insurance policies
* Our broker fee is only payable when you are awarded a new Mortgage Offer.
What does the remortgage process look like and what are the fees?
From the outset, you must carefully check your current mortgage agreement to verify if there are any early repayment fees and if they occur, until when they apply.
With the help of our company, you will receive a free initial and non-obligatory check of the current mortgage agreement and comprehensive assistance in choosing a new deal.
We always recommend that you start remortgage procedures at least 3-4 months before your current deal expires. Thanks to this, we will have enough time to choose the right offer and prepare all formalities.
Property valuation will be conducted and change of mortgage charge in the land register are also carried out by the solicitor. Currently, most deals on the market exempt you from paying for these actions, because the costs are covered by a new lender.
Prestige Financial Services has many years of experience on the market and as a broker we represent the Whole of market offering. Our standard fee for comprehensive handling of the remortgage process and all application formalities is £299. If you have any additional questions, please contact our office to discuss your case individually.
There is also a simplified procedure, the so-called Product switch, which involves changing the loan agreement with the current lender, although the range of offers is very limited compared to the number of offers available from the rest of the market.
Do you need help? Call us on 0203-488-1751 or fill out the contact form below and we will call you back.