Remortgaging is the process of switching Lender on a mortgaged property whilst remaining in the same property. Remortgages bring up a bunch of questions, when do I contact a broker ?, How do I know I am ready to remortgage ? It's hard to have the exact answer to all these questions and taking action late could potentially cost you thousands of pounds in lost savings.
The Huuti Mortgage management platform constantly monitors your mortgage to see when you can switch taking into account any early repayment charges, your current affordability and the value earned by switching.
So Why remortgage?
To save money you may be able to save money by remortgaging if:
-Interest rates have changed since you first took out your mortgage
-Your current mortgage deal is coming to an end
-Your mortgage is on a follow-on rate
-The value of your property has increased
To borrow more
If you're considering home improvements or a special purchase, remortgaging could help you raise the money you need by either borrowing more on your mortgage or releasing equity in your property.
Borrowing more means your monthly payments could go up, so think carefully about whether you'll be able to afford the extra amount for the full mortgage term.
Some people remortgage to consolidate their debts, but you may wish to get independent financial advice before doing this because your home will be at risk if you can’t meet the payments.Contact us for further info.
Changes in circumstances
If your personal circumstances have changed - for example, if you're starting a family or are earning more money - you may find that your current mortgage no longer meets your needs. By remortgaging you could change the features and terms of your mortgage to better suit your circumstances.
Steps to remortgaging
If your current Mortgage is managed by Huuti:
We will notify you when you can save money by remortgaging taking into account the amount saved, any early repayment charges you might incur and Your current Mortgage affordability.
We will display your Mortgage offer and the key facts affecting your new Mortgage.With a push of a button we will switch you to a cheaper Mortgage and notify you when the switch is complete so you can switch your payments to your new lender & update your Insurance products.
In any case Huuti can still manage your remortgage for you- the steps are similar to
those carried out when we execute a new mortgage.
If your current Mortgage isn't managed by Huuti:
It's important to know the terms of your current mortgage before you consider other deals. For example, will your current lender charge you an exit fee for moving your mortgage? Or an early repayment charge? This could be thousands of pounds if your current mortgage deal hasn't ended, so you need to weigh up whether you'd actually be better off by remortgaging. Check the documents you received from your current lender or contact them for details.
There are hundreds of mortgage deals available in the market, so you should take the time to consider what you want to achieve by remortgaging. Do you want to lower your monthly payments? Or have the flexibility to pay off your mortgage sooner? If your circumstances have changed, you may want to change the type of mortgage you have - eg, move from a variable rate to a fixed one so you can be confident of what your future mortgage payments will be.
You can use a Mortgage calculator to see how much you'd like to borrow and what your monthly payments may be.
To make sure you'll be better off financially by remortgaging, you should take into account all the costs that this could involve, for example:
Exit fee - your current lender may charge this to cover their administrative costs
Early repayment charges - you may need to pay this if your current mortgage deal hasn't ended
Application fee - what your new lender may charge to set up your new mortgage. Also referred to as an arrangement, product or booking fee
Valuation fee - your new lender will need their own valuation of your property
Solicitor's fee - you'll need a solicitor to manage the transfer of your mortgage to a new lender
You should speak to both your current and new lenders to find out exactly what fees may apply to you.
Once you know what you want from your new mortgage, and how much you can borrow for it, you can compare the mortgage deals available on the market. Comparison websites are helpful for this, or you can get professional advice from huuti with a whole of market mortgage coverage.
Once you know which lender you'd like to move your mortgage to, you should complete an Agreement in principle, Within a matter of minutes you'll be able to see whether the lender would be willing, in principle, to lend you the amount you want.
Once you get an Agreement in Principle, you can apply for your new mortgage. As with your current mortgage, the application will involve providing information about your personal and financial circumstances, as well as details of your current mortgage.
As with your current mortgage, your new lender will carry out a credit check to confirm your current circumstances and arrange for your property to be valued. A solicitor or conveyancer will need to be appointed to handle the transfer of your mortgage to the new lender. You may also want to take the opportunity to review your insurance needs especially if your property has increased in value. Depending on the complexity of your remortgage, the entire process could take between 1 and 8 weeks.