Remortgaging can be easier than you think
MANY of our mortgage members – particularly those who are coming to the end of their fixed term product – ask us what exactly remortgaging is, writes Newbury Building Society sales manager Karen Smith.
Misunderstood, remortgaging is often unfairly dismissed as ‘confusing’, when it is a lot simpler than you may first realise.
What exactly does ‘remortgaging’ mean? Remortgaging is when you choose to replace your initial mortgage with another without moving to a new house.
This tends to happen when a fixed-rate period ends and you are about to move to your lender’s standard variable rate.
How easy is it to remortgage?
The remortgaging process is a lot easier than many mortgage holders first believe, especially when compared to the initial purchase process.
For example, there’s no property chain to worry about, no house to buy or sell, no contracts to exchange and the general legal process is a lot smoother.
When can I remortgage? Comparison site, uSwitch, suggests those interested in changing mortgage deal should look at what’s on offer no more than three months before their current one expires.
This will give you enough time to do your research and complete the application before a standard variable rate kicks in.
You should avoid looking to remortgage too far in advance as you may have early repayment fees (ERC) to pay. Always check the small print of your current mortgage so you don’t get caught out.
How long does it take to remortgage?
Remortgaging is a lot quicker than first anticipated – especially if you’re sticking with your current lender. If you’ve taken steps to move your mortgage to a different lender, it may take a little bit longer as there may be a couple of extra hoops to jump through.
Is remortgaging worth it? There are lots of reasons why remortgaging could be the right choice:
■ Your current mortgage deal, such as a fixed rate, is about to come to an end and move onto a variable rate
■ You want to lower your monthly payments
■ You want to pay more of your mortgage off faster
■ You want to take advantage of better rates in the market
■ You want to move to a new house
■ You want to release equity to fund projects such as an extension to your current property
If you are looking to remortgage, please contact us or use our online mortgaging booking system to book an appointment.
We provide a tailored and individual service, and we are available for Saturday appointments.