A remortgage is when you move your existing mortgage to a new mortgage deal with a different mortgage lender or you move your existing mortgage to a different deal or product with the same mortgage lender; your new mortgage product will replace your old mortgage.
There are many reasons that people choose to remortgage, such as:
- When the fixed interest rate on their current mortgage product is coming to an end
- When there are better mortgage deals than their existing mortgage product and they want to take advantage of one of these deals
- When they want to borrow more money against their property
It is always good to do your research when you are thinking of remortgaging so that you are aware of all the different mortgage options available to you. It can be really helpful to speak to a mortgage broker who will be aware of the existing and new mortgage deals available and can help you find the product that is best for you and your circumstances.
You can also speak to your current mortgage lender to see if they are able to offer you a better deal and then you would be able to switch your mortgage product.
There are costs involved in remortgaging and these usually include the following:
- Fees charged by your new lender
- Conveyancing costs for dealing with the redemption of your old mortgage and completion of your new mortgage.
- Property valuation costs
- Potentially, early repayment charges on your existing mortgage if you repay the loan before any fixed interest rate period has come to an end.
Remortgaging does involve legal work and a conveyancing solicitor will need to be appointed to carry out the legal work for your lender and you. A conveyancing solicitor will need to review the title of the property, obtain redemption figures for your existing mortgage to ensure there are sufficient funds to pay this mortgage off on completion of your new mortgage, review and prepare a report for you on your new mortgage offer, send the mortgage deed to you to sign and register the new mortgage at the land registry.
A remortgage will typically take 4-8 weeks to complete after applying for your new mortgage.
