There are many different reasons why you might want to consider remortgaging your mortgage. Check out our guide on how you can remortgage your mortgage and how it works.
If you’re looking for a way to reduce the stress on your finances, remortgaging can be a great option. However, it’s important to understand how it works so you can make sure you’re not paying more than you have to.
That’s why we’ve put together this guide to help you understand how and when to remortgage so you never have to worry about paying more than you can afford.
What is a remortgage?
Remortgaging is the process of replacing your existing mortgage with another. You can do this by remortgaging with your current mortgage provider or by switching to a new mortgage provider, such as a bank, building society, etc.
Fixed Rate Mortgage Provisions
Fixed rate mortgages are offered by mortgage lenders and typically have fixed term maturities of between 2 and 10 years. If you do not remortgage on your existing fixed rate mortgage, you will be switched to your current lender’s standard variable rate, which can be significantly higher.
How to remortgage?
If you’re staying with your current mortgage provider, all you need to do is choose one of the different mortgage interest rates your lender offers. You can do this by logging in to your account on the lender’s website.
Once you’ve chosen a new interest rate, you just need to select it. If your lender approves the new rate, you’ll be automatically transferred to the new rate when your current deal ends.
Remortgaging, on the other hand, involves a few different steps if you’re changing mortgage providers.
Applying for new mortgage
A new mortgage application will be required when remortgaging with a new lender. You’ll need to provide details about yourself, your financial situation, and information about your existing mortgage.
You’ll also need to provide documents to prove your income and documentation for any credit agreements or loans you may have taken out.
If you’re looking for a fast and easy way to Remortgages Plymouth, work with a professional mortgage broker such as Tembo. We’ll help you find the best mortgage rates from all over the market, and we’ll manage your entire mortgage application process.
The next step is for your new mortgage lender to run a credit check on all the applicants on your mortgage application. The purpose of this is to verify your current situation and look for any credit problems you may have had in the past. Your new lender will also take care of the valuation of your property.
Next, you’ll need to hire a solicitor or a conveyancer to complete all the necessary paperwork, including the drawing up and signature of a mortgage deed. The conveyancer will also arrange for your mortgage to be transferred from your current lender to the new lender (some lenders provide a mortgage transfer free of charge). After the transfer is completed, you will have officially transferred to the new lender.