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Download your Free Guide to Re Mortgage Advice

Your mortgage is likely to be the biggest financial commitment and outgoing in your entire life. At MDJ Mortgages we believe it is of the upmost importance to take the right education and advice when it comes to re mortgaging what is likely to be your biggest asset. We have produced this guide to re mortgaging to help you understand the basics of the process, what you need to think about and the factors to consider. You’ll find a range of information from when you should re mortgage to why you shouldn’t just consider the mortgage rate.

We understand that the prospect of re mortgaging can be a daunting prospect and the choice of products overwhelming, but we are here to help. Let us do all the hard work for you from helping you choose the right mortgage product to suit your needs to finding and dealing with the solicitors to make sure everything runs as smoothly as possible.

Here is the best bit, our re mortgage advice is 100% free as we are paid by the lender which means absolutely none of the cost is passed to you. Simply contact us today for a FREE consultation.

what is a remortgage

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Re mortgage to release equity?

Re mortgaging to release equity is a common reason why homeowners choose to remortgage. This involves borrowing additional funds against the equity you have built up in your property, which is the difference between the value of your home and the outstanding mortgage balance.

When you remortgage to release equity, you are essentially taking out a new mortgage that is larger than your existing one, with the difference being the amount of equity you are releasing. You can then use the additional funds for a variety of purposes, such as home improvements, paying off debts, or financing a major purchase.

However, it’s important to carefully consider the risks and costs associated with releasing equity before you decide to remortgage. By increasing the size of your mortgage, you will also be increasing your monthly repayments and the amount of interest you will pay over the term of the loan. Additionally, if the value of your property decreases, you may end up owing more on your mortgage than your home is worth, which is known as negative equity.

Therefore, it’s important to seek advice from a qualified mortgage advisor and to consider your individual circumstances and financial goals before remortgaging to release equity.

How does a re-mortgage work?

Remortgaging, also known as refinancing, involves taking out a new mortgage to replace your existing one. The process of remortgaging typically involves the following steps:

  1. Determine your current mortgage status: Find out the current balance of your mortgage, the term remaining, and the interest rate you are paying.

  2. Evaluate your options: Consider your reasons for remortgaging, such as reducing your monthly payments, accessing additional funds, or changing your mortgage type. Research the available mortgage deals and compare the interest rates, fees, and terms offered by different lenders to find the best option for your needs.

  3. Apply for a new mortgage: Once you have identified a suitable mortgage deal, you will need to apply for the new mortgage. This will involve providing information about your income, expenses, and credit history to the lender, who will then assess your eligibility for the mortgage.

  4. Complete the remortgage process: If your application is approved, you will need to complete the remortgage process. This typically involves a solicitor or conveyancer who will ensure that the legal aspects of the mortgage are in order, and the new lender will pay off the existing mortgage.

  5. Start paying your new mortgage: Once the remortgage process is complete, you will start making payments on your new mortgage, which may be lower or higher than your previous payments, depending on the terms of the new mortgage.

Reasons why you should to re mortgage.

There are several reasons why homeowners choose to remortgage. Some of the most common reasons include:

  1. Lower interest rates: Remortgaging can allow you to take advantage of lower interest rates, which can reduce your monthly mortgage payments and save you money over the long term.

  2. Changing mortgage type: If you have a variable rate mortgage, you may choose to switch to a fixed rate mortgage to provide more certainty over your monthly payments.

  3. Accessing equity: Remortgaging can allow you to borrow additional funds against the equity in your home, which you can use for home improvements, debt consolidation, or other purposes.

  4. Consolidating debts: If you have multiple debts, such as credit card balances or personal loans, remortgaging to consolidate these debts into a single mortgage can simplify your finances and reduce your overall monthly payments.

  5. Shortening the term of your mortgage: If you can afford higher monthly payments, remortgaging to a shorter-term mortgage can help you pay off your mortgage sooner and save you money on interest over the long term.

  6. Flexibility: Remortgaging can provide you with greater flexibility over your mortgage terms, such as allowing you to make overpayments or take payment holidays.

 *Your home may be repossessed if you do not keep up repayments on your mortgage.

*You may have to pay an early repayment charge to your existing lender if you remortgage.

*Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage

The re mortgage advice process will only take 4-8 weeks, however the earlier you start looking for your new deal the better!

How long does it take to remortgage

How long does a re mortgage advice take?

We always advice our clients to start looking for a new mortgage deal as early as 12 months before the current deal is due to end.

This is to ensure that they get the best deal they can and to make the re-mortgage advice process as smooth and stress free as possible.

Below is a month by month guide to the re-mortgage advice process.

  • 12-7 Months prior to the deal ending, we will talk to you about your requirements. Assess your credit report. Test the re-mortgage affordability and how much the repayments are likely to be?
  • 6 Months prior to the deal ending, we will apply for the best mortgage deal currently out there that suits your circumstances. This may not be the offer we end up taking but it is our safety net, a guaranteed offer in case circumstances or interest rates change.
  • 3-5 Months prior to the deal ending, we will continue to check the market to ensure we still have the best deal for you. We will regularly check in with you and talk through any changes in the market and your updated options.
  •  2 Months prior to the deal ending, we will do a final check on the mortgage rates and together we will make the final decision and submit your new mortgage application.

If you would like to find out more then click on one of the resources below:

Are you worried about the affordability of your remortgage.  Want to find out if you can remortgage to release equity?  Take our FREE quick and simple Questionnaire to find out how much you can borrow when remortgaging. Answer 10 questions and we will send you a FREE personalised  affordability assessment. All we need is your name and email address!

Are you worried about what your remortgage repayments will be?  How much will my repayments be if I remortgage with equity release? Take our FREE quick and simple Questionnaire to find out how much your monthly repayments are likely to be. Answer 10 questions, along with your name and email address and we will send you your FREE personalised mortgage repayment assessment.

How does a remortgage work?  Found out how to remortgage the best deal? Contact us for the most up to date remortgage rates? We understand that the process of Remortgaging can be daunting and the choice of products overwhelming, this is why we have produced this FREE handy guide to remortgage to help you every step of the way. Simply leave your name and email address to download your FREE copy!

Expert Mortgage Advice Tailored to Your Needs

At MDJ Mortgages, we understand that finding the right mortgage can be a daunting task. That’s why we’re here to help you every step of the way. Get started on your homeownership journey today by scheduling a FREE consultation with our experienced mortgage advisors.

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Re Mortgage Frequently Asked Questions

Remortgaging refers to the process of switching your current mortgage to a new one, either with your existing lender or a different one. It involves paying off your existing mortgage with the proceeds from the new mortgage.

People remortgage for various reasons, such as:

    • Securing a lower interest rate: Remortgaging can help you take advantage of lower interest rates, potentially reducing your monthly mortgage payments.
    • Changing mortgage terms: You may want to change the length of your mortgage term, switch from a variable rate to a fixed rate (or vice versa), or adjust other terms to better suit your financial goals.
    • Releasing equity: Remortgaging can allow you to release some of the equity you’ve built up in your home, providing funds for home improvements, debt consolidation, or other purposes.
    • Avoiding the end of a fixed-rate period: When a fixed-rate mortgage term ends, the interest rate usually reverts to the lender’s standard variable rate, which may be higher. Remortgaging can help you avoid this increase.

The right time to remortgage depends on your individual circumstances and the current market conditions. It’s often beneficial to review your mortgage regularly, especially when your fixed-rate period is about to end to avoid the Standard Variable Rate or if interest rates have significantly dropped.

Remortgaging typically involves fees, which can include arrangement fees, valuation fees, legal fees, and potentially an early repayment charge if you’re still within a fixed-rate period. It’s important to consider these costs when assessing the financial benefits of remortgaging.

The amount you can borrow when remortgaging depends on several factors, including your income, credit history, the value of your property, and the lender’s criteria. Lenders typically assess your affordability and loan-to-value ratio to determine the maximum borrowing amount.  Complete our questionnaire to find out how much you can borrow.

In most cases, you will need a solicitor or conveyancer to handle the legal aspects of remortgaging. They will ensure that the new mortgage is properly registered against your property and handle the transfer of funds between lenders.

The remortgage process can vary, but it usually takes between four to eight weeks. The duration depends on factors such as the complexity of your application, the efficiency of the lenders involved, and the workload of solicitors or conveyancers.

It’s important to compare offers from your current lender with those from other lenders to determine which option is more beneficial for you. Consider factors such as interest rates, fees, and customer service. Switching to a new lender may offer more competitive terms, but it’s essential to evaluate the overall costs and benefits.

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