DMC

What is A Remortgage ?

In its simplest terms, re-mortgaging allows you switch from one mortgage rate to another on your current property. This could be with your current lender if they are offering better mortgage deals, or it can be with a new lender. It can often make sense to switch to a new deal, as you will make monthly savings if you choose something with lower interest rates, and you will pay off your mortgage faster.

How does Remortgage works ?

Re-mortgaging is usually straightforward and it can be made even easier with the services of a mortgage broker. We can help you find the best deals, saving you both time and money with the re-mortgaging process.

The process isn’t complicated as you are essentially replacing your old mortgage with a new one.
People tend to do this when they’re near the end of their fixed-rate or discounted mortgage deal and they want to move to a new mortgage with a lower interest rate.
People also remortgage when they want to overpay on their mortgage or when they want to release equity in their homes.

When to Remortgage?

It is ideal to start the re-mortgaging process up to 6 months before the end of your existing deal. It can take several weeks to get everything organized but once you have secured a new mortgage offer, you can transfer over when your current deal has ended.  

Switching Mortgage to another lender

You can switch to a new mortgage deal at any time. However, the best time is when you know you will end up in a better financial situation. So, when switching mortgage deals, you might choose to remortgage when:

  • Your current mortgage fixed rate is coming to an end
  • Interest rates are lower than they were when you took out your existing mortgage
  • You have built up a lot of equity in your home
  • When you want to overpay, and your current lender won’t let you

Getting a new Mortgage with a different lender

Before your current mortgage deal ends, you have two choices.

  1. You can stick with the current mortgage lender or,
  2. You can shop around for better mortgage rates / and deals.
    If you do decide to switch, you can transfer from one mortgage product to another with the lender you are already with or you can move onto a new deal with a different bank.

In some cases, staying with your existing mortgage lender makes sense. They will know everything they need to know about you and the property you live in so there will be less hassle with the application process. Money can also be saved as you won’t be subject to extra-legal work or fees. You simply move onto the new deal with your lender when your previous deal ends, and you start making your new monthly payments.
However, if you can find a better deal elsewhere, either by your own research or with the services of a mortgage adviser, you might decide to switch. This is where it gets a little more complicated as you will need to pull together all your financial information for the new lender. These will include your proof of earnings, such as your bank statements and P60 tax form, but if you use our services, you will help you get everything together.
The process will be familiar to you as it is essentially the same as when you first took out your original mortgage, as your new lender will assess your application and check your credit history. If all goes to plan, your new mortgage provider will pay off the old mortgage and you will start making your new monthly repayments to them.

How much does it cost to Remortgage ?

The total cost to remortgage is different on a case-by-case basis, especially if you move to a new lender. As happened when you originally took out your first mortgage, there could be fees attached to the overall cost of your remortgage. These can include:

Mortgage Broker Fee

Remortgage advice will usually vary between £495 – £2,000 depending on the complexity of the mortgage application and any adverse mortgage consideration. Typically, our mortgage advice and readiness plan will be £495, however, we provide free mortgage assessment on our initial discovery call which will help you clarify your likelihood to secure a mortgage.

Only when we are satisfied that you are mortgage ready and that we can help you, then we discuss the option of mortgage fees. This gives you enough confidence to know if we can work together to achieve your dream home purchase or remortgage.

For complete transparency, mortgage advisers are paid a commission directly by lenders for overseeing the clients mortgage application process to fulfillment.

The relevant total fees charges will be discussed and documented in the Mortgage Illustration document.

Arrangement Fee

When it comes to an arrangement fee, the amount you pay will depend on the mortgage lender, but usually, the lower the interest rate on the mortgage, the greater the arrangement fee will be.

You have the option to pay the arrangement fee upfront or add it to your mortgage which will increase the total amount of loan you repay. When you can afford the arrangement fees, we encourage people to apply.

Legal Fee

These are based on the work your solicitor has to carry out, it is also referred to as conveyancing work. The cost of this will be a lot less than if you were moving house, however, some lenders will waive legal fees if they choose to use their own solicitors.

Early Repayment Charges

If you leave your current mortgage product before it finishes, you will more than likely have to pay your lender an early repayment charge.
This won’t apply if your deal with them has ended, and you are on your lender’s standard variable rate SVR.

To avoid any early repayment charges, get in touch with our mortgage advice team.

Your early repayment charge date which is known as your end of mortgage term date is usually on your mortgage certificate.

Speak with us early and we’ll help you avoid an early repayment charge.

Valuation Fee

When re-mortgaging to a new lender, they will want to carry out a valuation to find out how much your property is worth. The fee is sometimes included in the remortgage deal so check with the lender first.

How Do You Calculate A Remortgage?

The best way to recalculate a remortgage is to use a re-mortgaging calculator. To find out how much you will be eligible to borrow on
your mortgage renewal, you will need a few key pieces of information
for the calculation. These will include:

  • The loan amount you intend to apply for
  • The value of the property
  • The repayment type of the loan

To get a more accurate figure, it is advised to use the services of a mortgage broker, as we understand the different factors lenders will
consider.
The mortgage advisers at Dartford Mortgage Centre will be able to search the entire market to find the best mortgage deals and rates for you.

If you want to remortgage you will need to speak to a ‘whole of market’ mortgage adviser. Start planning your remortgage 5 five months before your current fixed rate ends to guarantee your best flexibility. Compare remortgage deals with a mortgage broker like
ourselves. We search the entire market to find the best mortgage deals and rates for you.

In order to work out how much this is going to cost, there are a number of different things you need to look at. For example, you need to consider how much it is going to cost you to leave your existing deal. An early repayment charge could cost as much as five per cent or as little as nothing. You may also need to pay a ‘deeds release fee’, which is usually between £0 and £300. You then need to figure out the cost of getting your new mortgage product. This includes the mortgage arrangement fees, valuation fee, conveyancing fee, and broker fee.

Will There Be A Lot Of Paperwork To Remortgage?

There is a reasonable amount of paperwork involved in re-mortgaging, but the good news is we do it all for you. Our team know mortgages inside and out. We support you through the whole remortgage journey from start to finish. Our service includes your own dedicated Client Fulfillment Manager for smooth operational support, so get in touch with our remortgage team to see how much you could save by switching your current mortgage product deal.

Who Is The Best Mortgage Lender UK?

When you’re looking for the best lender in the UK, you are looking for more than just the lowest fees, interest rates, their reputation, the level of customer service and speed of completion.

The ‘best mortgage lender’ will depend on your specific set of circumstances, we are so keen in the initial preparation by gathering specific needs and requirements from you and then matching your application with the right lender.
Also remember that mortgage brokers have wider access to mortgage lenders across the UK and have most recent criteria changes and level of
service for each lender, so when considering remortgage rates, get in touch with us.

How Easy Is It To Remortgage?

You can re-mortgage your buy-to-let if you need to release equity to raise some cash. It’s also a good idea to remortgage if you want to move to a more favorable mortgage deal as this can make a huge difference to your monthly repayments.

If your fixed rate is coming to an end, it is advised to get a broker to facilitate your mortgage product / lender switch. They will make sure that you don’t fall onto a Standard Variable Rate (SVR) whilst making sure you don’t cancel your mortgage too early and up with any repayment charges.

It can be a minefield, but for advice and support on remortgaging and all other aspects related to mortgages. We make getting any mortgages
easy and pain-free, get in touch with us today.

As a leading mortgage broker, we are here to answer any questions you have about the mortgage process and can help you get the right deal
for you.

Whether you have one buy to let or you’re a portfolio landlord, speak to us today. We have access to the best buy to let mortgage rates you can
qualify for.

What Are the Different Reasons For Capital Raising or Equity Release?

For most people, re-mortgaging will be a straightforward process. However, others find it more difficult, depending on their situation and several key factors the lender will take into account. One such factor is the purpose of the remortgage as this will impact the deals and the lenders you will be eligible for. Here we give an overview of the different types of reasons that are acceptable for most lenders.

Capital Raising For Home Improvement

People often raise capital on their property so that they can carry out home improvements. The amount you can raise will depend on your income and the equity you have in your property. The higher the equity amount the more you will be able to release, if it suits your affordability and income amount.

Capital Raising For Debt Consolidation

Capital Raising For Tax Purpose

Capital Raising For Property Purchase

Capital Raising For Travel/Holiday

In respective of the reason for your desire to raise some capital from your property, we can make an assessment and advise you how much you
will be able to raise.

What Is The Best Remortgage Rate?

Mortgage rates changes daily as some mortgage lenders change their interest rate every day. We understand you want the best interest rate, but as there over 14,000 mortgages available in the UK, finding the best remortgage rates can be difficult. For you, this means a lot of legwork and phone calls when trying to secure the best remortgage rate. However, with our help as expert mortgage broker, we can help you find and secure the best remortgage rate for you. 

 

It is also very important that you understand there are many other factors outside mortgage rates that determine the best mortgage relevant to you, we take an holistic approach to ensure the best overall mortgage is secured for you.

What Is A Fixed-Rate Mortgage?

As the name indicates, the mortgage interest type has a fixed rate of interest for a set period of time. This term tends to vary between two and ten years. The main advantage associated with this type of mortgage is that you have the peace of mind that you are going to be paying the same monthly payment every month for the fixed period/term. Fixed-rate mortgages are the most common type of mortgage interest rates.

What Is The Bank Of England Base Rate?

The base rate is a rate that is set by the Bank of England. The rate is what is charged to other banks and mortgage lenders when they borrow money.

The base rate is currently at 0.10%. Due to the pandemic, the base rate is currently the lowest it’s been. It is in place to influence the interest rates that most lenders charge for borrowing money such as for mortgages, loans, credit cards and other types of credit people are offered.

Will My Credit Score Affect My Remortgage UK?

Credit score is one of the most important aspect of getting a mortgage, we highly recommend checking your credit score regularly and as a minimum to get it into shape at least six months before your current mortgage rate ends. The better your credit score, the more remortgage options you will be offered and therefore the better remortgage rate you could secure for your property.

There are different options to check your credit history and credit rating and most have a free trial option after which you pay monthly fees between £6 – £13 monthly. Common credit report agencies are Experian, Equifax but we have seen better customer feedback from using CheckMyFile which has a unique structure and allows you access to the four main credit agencies (Experian, Equifax).

Should I Remortgage If My Mortgage Has Early Redemption Charges?

Early redemption charge (ERC) ensures you are tied into a specific period especially with fixed rate mortgages, if you leave your existing lender too early there will be a charge for breaking the fixed term agreement. ERC is calculated based on the remaining term and it could rage from 1% – 5% (on a reducing scale) of the loan amount.

At Dartford Mortgage Centre, we will make sure this doesn’t happen and can plan with you when the best time to remortgage is.

Do I Need A Solicitor For A Remortgage?

If you do decide to stick with the same lender, there will be no legal work involved. However, you will need a solicitor to take care of the legal side of your remortgage if you decide to move to a new bank or building society. In some cases, the lender will insist that you use their legal team, and they will cover the legal fees themselves. Alternatively, we have a selected panel of solicitors who we work with and trust their reputation, we ensure you have a better deal and results. 

Will My Existing Lender Offer Me A New Deal?

Your existing lender is likely to offer you a new deal to stay with them but the chances of it being the best rate for you is not certain. It is usually better to compare what your existing bank is willing to offer you with the rest of the mortgage market to get you the very best rate.

However, most people still remain with same lender despite knowing it is not the best option for them as a result of inertia to make changes, which could be related to the paperwork or process involved in getting a mortgage.

We have worked with many clients and devised an easy approach to support you with our dedicated Client Fulfilment Manager and take the stress out of mortgage application.