Re-mortgage Guide
Re-mortgaging means changing your current loan.
Reasons to re-mortgage:
- Reduce your monthly payments by changing to a different rate
- Release equity in your property (eg. To provide funds for building work)
- Change to a fixed-rate to assist with your monthly budgeting
Where to start:
- Speak to your current lender to see if they can offer you a better deal. This can be the cheapest option as you may be able to avoid paying for a new valuation or for another local authority search and possibly save on legal fees too.
- Once you know what your current lender can offer you, look around at other options to see if another lender can improve on the offer.
- Ask your current lender if they can match the offer you have found elsewhere.
- Remember to ask your current lender about early redemption penalties. You do not want to have a large bill for leaving your mortgage before the agreed date.
What is involved in re-mortgaging:
- You will need to submit specific paperwork to your new chosen lender. This includes:
- Proof of your income
- Information about your expenses and out-goings
- Proof of your residency, such as a passport or driving licence
- Your home will require a valuation. For re-mortgaging this can range from a ‘drive by’ valuation to a surveyor visiting your home for a detailed inspection.
- You will need to appoint a conveyancing solicitor to
- Undertake a local authority search or to organise search indemnity insurance (a cheaper policy covering anything that might have been discovered in a search).
- Organise the transfer of debt from one lender to the other.
Costs of re-mortgaging:
- Conveyancing for re-mortgaging is cheaper than when buying or selling a home. Find a conveyancing solicitor who can undertake your re-mortgage in your area:
- There is no stamp duty to pay on re-mortgaging.
- You may be charged a valuation fee from the surveyor. Find a surveyor in your area who can provide a home valuation survey.