Get help with remortgaging a property
To remortgage a property, you need to take out a new mortgage on a property you already own. You can do this either by switching to a new lender or by moving to a different rate with your existing lender.
There are several reasons why you might want to remortgage your property:
- Your current mortgage rate deal is about to expire
- You are looking to get a better deal and reduce your monthly payments
- To release equity from your property for home improvements or to help children get on the property ladder
Our expert property solicitors are here to talk you through your remortgaging options and help you make an informed decision that is right for you now and in the future.
Next steps: get in touch for remortgaging advice
If you need advice on how to remortgage property, contact our team on: 0800 533 5349 or enquiries@mogersdrewett.com
Meet the team
Frequently asked questions
Remortgaging is the process of switching your current mortgage deal for a different mortgage deal. This often means changing to a new lender, but sometimes it simply involves using a new mortgage product offered by your current lender. By changing to a mortgage deal with a lower rate of interest, you save money on your monthly mortgage payments.
Remortgaging is usually very easy, especially compared with getting a brand new mortgage to buy a property. Simply find a mortgage deal that is better than your current deal and submit your mortgage application. Your solicitor and lender will take care of the rest.
Remortgaging generally takes around 4-8 weeks to complete. This is much quicker than buying or selling property, but you still want to leave yourself plenty of time. Give yourself at least two months before your current mortgage deal expires to start the remortgaging process.
You can remortgage your property at any time. But if you do, make sure it will benefit you in the long term.
It is recommended that you remortgage your property when:
- Your fixed-rate mortgage deal is about to expire
- You have built up more equity in your home
- Interest rates have dropped below what you are currently paying
Most people who remortgage do so just before the fixed term on their current mortgage deal ends. When this happens, your lender will usually move you to their standard variable rate (SVR) of interest, which can dramatically increase
your monthly interest payments. It is a good idea to remortgage at least two months before your current deal is set to expire to keep your interest rate as low as possible.
There are three main ways for homeowners to release cash tied up in their home:
- Equity release, such as a lifetime mortgage.
- Remortgaging or additional borrowing from your existing lender. 3. A secured loan.
The best way to release cash from your home will depend on your personal circumstances. That includes your age, your current loan-to-value (LTV), how quickly you need the cash and your ability to meet monthly repayments.
Remortgaging to raise capital requires you to make monthly repayments. An equity release plan does not.
For this reason, your income level could be a factor in your decision. Lenders look at your age, as well as affordability, when you apply to remortgage.
The main advantage of remortgaging is that it will usually prove the cheaper option overall. Equity release rates are generally much higher than rates on traditional mortgages.
Unless you own 100% of the property, a lender will not consider you or your property for an equity release mortgage. However, if you need to borrow for home improvements, it may be possible to arrange a residential mortgage. Speak to our team of experts to find out your options.
