If you wish to remortgage your property there are a number of key things you need to consider before you take action.
Your current mortgage product
What are the terms of your current lenders’ product, are there any penalties for redeeming the product and if there are, when do these penalties reduce or cease?
Your financial situation
Has your financial situation changed since you took out the original mortgage? If it has deteriorated you may find it difficult to find a lender who will offer you a new product. If it has improved, you may be able to secure a more attractive rate than you currently have.
If one of the borrowers is being removed from the mortgage or a new borrower added this can also cause underwriting complications and in this eventuality you should always speak to an independent mortgage broker in the first instance.
Remortgage – Legal Process
When you arrange a remortgage there is legal work required in paying off the original lender and putting the mortgage in place for the new lender.
In the current market many remortgage products have a feature where the lender offers to pay the legal costs of the remortgage process and they will also often cover the cost of valuation of the property.
Once you have identified a product, made your application and secured a formal mortgage offer, a solicitor is appointed to handle the case.
The solicitor will then get a settlement figure from your current lender and agree a date when they will draw down the funds from your new lender, pay off your current lender, put the new mortgage in place, and return any surplus cash to you.
Since most mortgage products are priced for two, three or five year periods, it is important that you review your existing mortgage at the end of each product period to keep your pay rate competitive and in line with your own needs and objectives.
Our independent mortgage brokers are waiting to assist you – contact us now.
