Remortgage – A guide for clients looking to remortgage

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What is a Remortgage?

A remortgage is when you transfer from one lender to another without moving home. This could be with or without raising additional money, which could be for home improvements, debt consolidation, business purposes, a new car etc.

Why would I remortgage?

People tend to remortgage for one of two reasons. Firstly, they want to secure a more competitve interest rate. This could be fixed, tracker, discounted, capped etc. You can usually secure a better rate by changing from your existing lender, as they rely on lathargy from their customer base. Secondly, they may wish to raise additional money, and their existing lender will not let them do this, or will not let them do it on an uncompetitive rate. This money could be used for any legal purpose, although some lenders put restrictions on what the money could be used for when dealing with a remortgage.

How do I remortgage?

The best way to remortgage is to speak to a broker, or mortgage advisor such as Mortgage Advice Network (UK) Ltd. They will look at your existing mortgage, and ensure that you do not have any early repayment charges to remortgage away from your existing lender. If you do have these charges, you can still remortgage, but it is important to know if their is a financial penalty for doing this. They can then look at the reasons behind your remortgage, whether it is to raise capital, or to secure a better rate. They can then do a comprehensive search of the market place and find the ideal lender to meet your needs.

Why Use Mortgage Advice Network (UK) Ltd?

We offer a comprehensive remortgage service, and have many year experience of helping our clients to remortgage without hassle from one lender to another. We have access to many schemes, including fee free remortgage schemes, self certification remortgage schemes, adverse credit remortgage schemes. We can offer remortgages on fixed rates, discounted rates, and tracker rates. We also have access to cash back remortgages. We do not usually charge fees for our services. When helping you remortgage, we will find the most appropriate lender and scheme to meet your needs. We complete all the paperwork on your behalf, and track the application from start to finish. We liaise with solicitors, and the lender to ensure that there are no delays. When the remortgage starts, we keep in regular contact to ensure that it remains the best remortgage deal to meet your needs, both at the outset and in the future.

Other considerations with remortgaging

Lenders are not the same. They will take different income into account when assessing your remortgage application. Some will take tax credits into account, some will take regular over time into account, but others will require overtime to be guaranteed. Just because one lender says no, it does not mean that you can not get what you want. You need to be aware that going from one lender to another could reduce your credit score, and could affect your ability to remortgage. This is why it is important to use a mortgage advisor or mortgage broker when you are looking to remortgage.

Lenders will put different restrictions on remortgaging. Some will restrict debt consolidation to 75% of the property value, whilst others will allow you to debt consolidate to 125% of the property value. Some will lend for any legal purpose, some will lend only for home improvements. It is important to find a mortgage broker, or mortgage advisor who knows which lender will lend for different reasons Again, going from lender to lender could reduce your credit score and could affect your ability to remortgage.

Not all brokers or advisors charge fees. Some work on the basis that they will earn a commission from the lender. Many brokers who charge fees also get this commission, but feel they can justify the right to charge a fee as well, because of the advice they give. It is a myth that a broker who charges a fee will offer a more superior service than those who do not, although in some cases this might be true. Other brokers will charge you a fee, but give you the commission which they receive from the lender. Usually the fee is higher than the commission earned by the lender, so in practice this does not happen very often. Mortgage Advice Network (UK) Ltd give you the option of paying a fee, and having the commission refunded to you, Alternatively, most of our clients prefer to allow us to receive payment from the lender, rather than charging a fee.