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Property
advice | Mortgage
guide | Remortgage
A remortgage is just like taking out a normal loan, with one main
difference. You are raising money to pay off the old mortgage - at
a better rate, for greater flexibility or for a specific purpose.
You don't have to change lenders, but many do.
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Saving money - by reducing your monthly outgoings.
Speak to an adviser now! |
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Reducing the loan - being able to overpay without
redemption penalties. |
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Releasing equity - to make improvements, take
a holiday of a lifetime or buy a second home. |
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Switching to a more competitive lender or product
- for example, if your current rate is too high or you have
concerns over an endowment mortgage. |
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Greater flexibility - by switching to a scheme
which allows you to underpay, overpay and have the means to
release equity. |
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You cannot use the original survey - so you will be charged
for a new one. |
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Budget for legal and administration fees - although they should
not be a high as your original loan. Many lenders now offer
deals which refund these costs on completion- provided you use
their recommended surveyors and solicitors. |
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Beware of redemption charges on your existing mortgage if
you are still within an introductory offer period with a fixed,
discounted or capped rate of interest. |
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Some loans also have an overhang period after the introductory
time. |
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Weigh up the savings against any costs and penalties. It can
sometimes be worth paying these for the benefit of the new loan. |
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It takes less time because you're not buying a home - around
six weeks. |
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If you need to act quickly, you may find a fast track service
to complete in a week. |
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Try and avoid two sets of interest charges. If you are remortgaging
with a lender who charges interest to the end of the month,
you should remortgage on the first of the month. |
Useful links
Selling your
home
First time buyers
Property news
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- The UK's leading estate agent directory
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