What is a remortgage?

Our Remortgage Service - helping you make the right decision

Why choose our remortgage service?

Fair Mortgages can provide you with a first class remortgage service. 

Special features of what we offer include:

• Whole of market service - we cover most UK lenders

• Great Rates - Access to leading market rates

• Exclusive Deals - Access to exclusive remortgage deals not available on high street

• Fast turnaround - call us if you need to move fast!

• Less than perfect credit history? - We have lenders who will take into account previous defaults and missed payments 

• Raising additional finance - If you are looking to raise finance we will look at all your finance options as well as remortgaging.

To investigate your remortgage options call our specialist team on 0117 403 4474 or fill in our call back form. 

Coming to the end of your existing mortgage deal usually means that it’s time to start looking around at the mortgage market to see what other options are available.

Remortgaging simply means switching your mortgage, either to a new deal or to a new mortgage provider, to get a better rate.

Why remortgage?

There are several reasons why you might consider remortgaging, some of which could include:

• Saving money - Finding the right remortgage deal can save you a significant amount on your repayments each month. If your mortgage has a fixed term deal or a discounted rate for a set period of time, you could find that once this ends you are moved onto your lender’s standard variable rate (SVR), which rarely offers the best value for money.

• Raising extra money - Remortgaging can also be a good way to use the value accumulated in your property. This may be particularly true if you have owned the property for several years because it might now be worth a lot more than you originally paid for it and you will hopefully now own a larger share of the property assuming you have been making timely mortgage repayments. Remortgaging in these circumstances could allow you to raise funds for costly projects such as home improvements or extensions, without requiring you to move to a new property.

• Adapting to your changing lifestyle - Over time, the type of mortgage that might best suit you can change. For example, you may have had a change in financial circumstances since originally taking out your mortgage and want to have the facility to make higher or lower payments. Or, you may have paid off enough of your mortgage to be eligible for a lower loan-to-value (LTV) mortgage that offers better value.

Potential remortgage pitfalls to avoid

Remortgaging can offer many benefits but it can also be an expensive business. Before you opt for a remortgage deal, make sure you have considered the following points – this will help you to avoid hidden costs and problems during the remortgage process:

• Arrangement and admin fees – even if you are remortgaging with the same provider, you may still need to pay an arrangement fee for the new mortgage, which could be up to £2,000 in some cases.

• Early repayment charges on your existing mortgage – many mortgages come with an early repayment charge which means that if you leave the mortgage deal before a certain period of time has elapsed (for example, before the end of the fixed rate term) you could face a penalty. This can be up to 6 months’ worth of interest in some cases, so make sure that the benefits of remortgaging outweigh the costs of any early repayment charges before you make a decision.

• Valuation fees – the lender will want an up-to-date idea of the value of your property before they agree to a remortgage. Expect to pay up to £300.

• Higher lending charges – some mortgage brokers charge a higher lending fee if you are borrowing over a certain amount (usually around 75% LTV)

• Other costs involved in remortgaging – bear in mind that remortgaging can also involve some of the usual admin costs of moving house, such as land registry fees and legal fees.

Top tips for remortgaging the right way

Before you jump straight into the remortgage world, it’s a good idea to shop around for the best deal – your current mortgage lender may not necessarily offer the best remortgage deal, so use our free mortgage calculator to compare the remortgage market and find the top deals for you.

• Consider a new type of mortgage – while you’re shopping around and comparing the remortgage market you may also want to think about switching to a different type of mortgage. As well as the well-known fixed rate and variable rate mortgages, there are also discounted mortgages, offset mortgages and other deals to choose from.

• Check that it makes financial sense to remortgage – Make sure that the savings you will make by remortgaging outweigh any administration costs involved in setting up the new mortgage. Take into account the legal fees, valuation fees and any application fees when you make this decision.

• Remember that discounts and fixed rates will come to an end eventually – When you are considering remortgaging, it’s easy to be swayed by a tempting discount or fixed rate deal. However, it makes financial sense to work out if you’ll still benefit from remortgaging in the long run by looking at the lender’ standard variable rate, which will  usually come into effect once your initial deal has ended.  

• Get the best quality remortgage help and advice – at FairMortgages.co.uk we can offer you a tailored remortgage service from start to finish, including help to manage the remortgage application process. Call us today on 0117 403 4474for expert, impartial advice.