What is Remortgaging?

Remortgaging happens when you change the mortgage you currently have on your property, either by switching it to a new lender, or by moving to a different deal with your existing lender. Remortgaging to a different product could potentially save you hundreds or even thousands of pounds a year, so it’s important to review your mortgage regularly to see if better deals are available elsewhere.

The main reason to remortgage is to save money by securing a lower rate of interest on the debt. Others remortgage to release capital (or ‘equity’) from the property to finances home improvements, or to pay off other debts.

Lenders will typically offer an introductory rate for an initial fixed period of two or more years. Alternatively lenders will offer mortgage rates at a discount on their standard variable rate (SVR), again for a fixed period of time. The majority of initial deals such as these only last for a few years. When they expire, homeowners will usually be moved automatically onto the lender’s standard variable rate, which will typically be considerably higher than the rate they have previously been on.

However once this occurs you don’t have to settle for the standard variable rate, or indeed stay with the same lender for the whole of the mortgage term. Provided you aren’t locked into a deal which will charge you early repayment penalties if you change, you should be free to switch to another mortgage deal whenever you want. Doing so could save you thousands of pounds a year.

Always speak to an independent mortgage broker before remortgaging as they will be able to help you work out whether you are better off staying with your existing mortgage, or move elsewhere. There are several costs involved in remortgaging that you will need to factor in, most mortgage deals have arrangement fees, so make sure you know exactly how much you’ll have to pay before signing up to a particular deal.

Once a mortgage offer has been issued our conveyancing team here at Timms will be able to assist you at every stage through to completion. We will liaise with the bank/building society to arrange completion of the remortgage and will handle the redemption of your existing mortgage for you. After completion we will arrange for your Title Deeds to be updated showing details of the new mortgage lender over the property.

With four offices across the East Midlands, in Ashby, Burton, Derby and Swadlincote, the Timms conveyancing team welcome the opportunity to assist you through your remortgage. Call us free on 0800 011 6666 or request a no obligation quote at www.timms-law.com.