How Does a Remortgage Work?

Remortgaging is something that people go through all the time. But what does a remortgage mean in practice? What are the actual benefits of remortgaging a property – and when can you remortgage at all? Some of the processes can seem a little confusing at first, which is why we’re here to help break things down a little for you.

What Does Remortgage Mean?

When you remortgage, you move who you pay your mortgage to. You might do this by moving to a different lender, or you might even choose to set up a whole new deal with the same lender. In either case, it makes sense to look for the best possible rates. Over time, mortgage rates can change, as can interest rates. Why shouldn’t you keep an eye out for a deal which saves you money?

To ‘remortgage’, you ‘mortgage again’ – makes sense? It will do in practice!

When Can I Remortgage?

That’s the million-pound question. You should think about remortgaging when you are coming towards the end of an existing mortgage scheme with your lender, or possibly when you feel there are better rates available. It is important to check though that you don’t have any early repayment charges on your existing mortgage (an adviser can help you with this).

You’re able to remortgage at any time you like. However, it is important to make sure you’re not changing lenders if you’re not going to see any benefits, otherwise, there is no point.

The best time to look for new mortgage deals, with your same lender or with others, is when you are coming towards the end of your current deal. A general recommendation would be 4-5 months in advance to ensure that everything is in place before your current deal ends.

Your existing lender may offer you a new deal, as your mortgage scheme is ending. However, reviewing your options with a professional mortgage broker at this stage could prove valuable. Often, other lenders will have better deals available, meaning you could be paying less or using any savings to reduce the term of your mortgage. Reviewing your options is therefore key.

Not all deals last forever. Therefore, you should be careful to look for deals that are going to be most cost-effective for you and your needs moving forward.

You should also think about taking on a new mortgage if you’ve seen that interest rates are getting lower. You might even want to remortgage if you feel your home value is going up!

Can You Remortgage to Pay Off Debt?

In theory, yes. However, there are factors to be considered, do you have sufficient equity within your home? If consolidating it may be that you are looking to reduce your current monthly expenditure, if this is the case you need to consider that you may be taking on additional borrowing on your mortgage, where you will potentially be paying interest over a longer period..If you’re looking for a remortgage or want to learn more about how a remortgage could benefit you in the long run, it’s time to get in touch with an expert. Getting professional advice is key.

Can I Remortgage for Home Improvements?

As above, provided you have equity within your property and the lender deems the additional borrowing affordable. The answer is potentially “yes”.

You will not generally be able to borrow additional funds versus the future value of the property. This means that your existing mortgage plus any additional required funds must be below the present value of your property and generally not exceed 90% of the value.

My Mortgage Experts & Protection Experts Ltd (FCA 937076), is an Appointed Representative of King Mortgages Ltd.

King Mortgages is authorised & regulated by the Financial Conduct Authority (FCA). King Mortgages Ltd is entered on the financial services register under reference number 803561.

The information contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.


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      Automatic Property Value Updates

      Changes in property value, coupled with a potential reduction in your loan amount (with a repayment mortgage), mean a change in the equity available in your property (Loan to Value); hence there could be improved opportunities for a better mortgage for you.

      Product Expiry Date

      Sussed will track when your mortgage is due to expire (usually when your mortgage payments rise substantially as you will automatically transfer to your lender’s standard rate).

      The app will alert you when it’s the right time to discuss your options with your mortgage broker.

      Sussed can help you plan.

      Rate Riser

      This feature is ideal for today’s economy and increasing prices. Sussed will continually scan the market, looking for the best-fixed rates available, especially when interest rates are rising.

      Using a series of algorithms, our clever technology can identify longer-term fixed rates available today that could save money against predicted rates at the end of your current product term (including the cost of transfer) – sussed is doing all the hard work.

      Equity Available

      With automatic property value updates and your Mortgage information loaded, this feature calculates the amount of equity and the maximum potential loan that may be available within a landlord’s portfolio. This will assist with seeing if there is the opportunity for to perhaps buy another property from leveraging your portfolio.

      Within sussed, you will also be able to see each of your properties with a roadside picture, a confirmed property value, monthly rental, current mortgage balance, payments, interest rate and the Loan to value/Gross rental yield.

      Sussed can help you manage your portfolio.

      Early Review

      This feature is there waiting for interest rates when they reduce. Using the same technology as Rate Riser, sussed will identify if your current deal is now able to be improved.

      Should the interest rates decrease, sussed will compare deals available on the day with your existing deal and flag if there is an opportunity for you to save money by switching.

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        Regional Price Limits

        There are price limits on homes you can buy with an equity loan. The limit is different for each region in England.

        • East - £407,400
        • East Midlands - £261,900
        • London - £600,000
        • North East - £186,100
        • North West - £224,400
        • South East - £437,000
        • South West - £349,000
        • West Midlands - £255,600
        • Yorkshire and the Humber - £228,100

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