Croftons Conveyancing

REMORTAGING YOUR HOME

Remortgaging is the process of moving your mortgage from one lender to another.

To discover just how our friendly and supportive our team can be in your remortgage requirements, call 0845 838 7013, use the online form or request a free callback.

You may consider remortgaging to:-

• reduce your monthly repayments by securing a cheaper mortgage.
• reduce your monthly repayments by extending the term of your mortgage.
• reduce the mortgage term, by finding a cheaper deal and keeping repayments the same you could be mortgage-free sooner
• release some of the value in your property for other spending, such as home improvements.

Here’s how:-

1. Get your paperwork together

You should start thinking about remortgaging 3 to 6 months before your current deal ends.

Gather your latest mortgage and bank statements to see how much you are paying on your current mortgage.

2. Find out how much it will cost you to move

Check the small print on your current mortgage deal for any early repayment charge (ERC) which may make your remortgaging too expensive.

Also, look out for any exit fee which your lender charges for closing your mortgage.

Contact your lender to get a quote for paying off the amount you owe, plus any charges, and check the exit fee you are quoted matches the one in your mortgage agreement.

3. Find the mortgage you want

If you do not want to do the leg work on your own, you could use a mortgage broker.

4. Apply for the new deal

Generally, you need to do this around 3 months before your existing offer rate expires.  Some deals can be arranged up to 6 months in advance, others for much shorter periods.

5. Instruct a solicitor

Once you instruct your solicitor you will need to provide the following:-

• Details of your current mortgage account including the account number – this will enable your solicitor to apply for a redemption statement which will show how much is needed to clear your mortgage. This statement will include any ERC and your solicitor will go through the statement with you.
• Details of your new mortgage product – this will enable your solicitor to advise on how much surplus will be due to you or how much shortfall you will need to pay.

6. Completion

Your existing mortgage will end on the same day as your new mortgage begins.

This will take place once the formal mortgage offer has been received.

Your solicitor will use your new mortgage advance to pay off your existing mortgage and any surplus will be paid to you.

To find out more call 0845 838 7013, use the online form or request a free callback and speak with our friendly professional team.