Emily's Mortgage Services LTD

Remortgaging can be a smart way to reduce your monthly payments, secure a better interest rate, or release equity from your home. As your trusted mortgage broker, we’re here to guide you through the process and help you make informed decisions. Here’s what you need to know:

What is Remortgaging?

Remortgaging means replacing your current mortgage with a new one, either with your existing lender or a different one. The aim could be to:

• Secure a better interest rate
• Lower your monthly payments
• Release equity from your home
• Consolidate debt

Step 1: Evaluate Your Current Mortgage

Before deciding to remortgage, review your current mortgage with us:

• Interest Rates: Are you on a competitive rate? Check if your rate is higher than current market offers.
• Remaining Term: Know how long is left on your current deal.
• Early Repayment Charges (ERC): If you’re on a fixed-rate mortgage, you might face penalties for leaving early.
• Loan-to-Value (LTV): Calculate your LTV to understand how much equity you have in your property.

Step 2: Understand Your Remortgage Goals

Clarify why you want to remortgage:

• Lower Monthly Payments: If interest rates have dropped, remortgaging could reduce your monthly outgoings.
• Fix Your Rate: If you’re on a variable-rate mortgage, locking in a fixed rate could provide stability.
• Release Equity: If your home has increased in value, you could access some of the equity for home improvements, investments, or other purposes.
• Debt Consolidation: Combine other debts into your mortgage for easier management and potentially lower interest rates.

Step 3: Check Your Financial Situation

• Credit Score: We will assess your credit report
• Affordability: We will make sure your income and expenses support your new mortgage payment. Lenders will assess this before offering you a deal.

Step 4: Research the Best Deals

• Interest Rates: Compare deals from different lenders. You’ll find options for fixed-rate, tracker, and discounted variable-rate mortgages.
• Fees: Don’t just focus on the interest rate. Pay attention to arrangement fees, valuation costs, and any other charges.
• LTV Consideration: The lower your LTV, the better rates you’re likely to secure. If you have 20% or more equity in your home, you’ll generally get the best deals.
• Early Repayment Charges (ERC): If you’re looking to switch lenders, be aware of any fees associated with exiting your current deal early.

Step 5: Get Your Property Valued

Many lenders will require a property valuation to determine the current market value. This is especially important if you’re releasing equity or reducing your LTV. Usually a lender completes this free of charge on your behalf.

Step 6: Choose Between Your Current Lender or a New One

• Stick with Your Current Lender: Many lenders offer loyalty discounts or retainers for existing customers. You may have fewer fees and paperwork to complete. We will assess whether this is the best option for you.
• Switch Lenders: If a new lender offers a better deal, switching could be worthwhile. It may involve more paperwork but could result in significant savings.
• Use a Mortgage Broker: We can help you navigate the best deals and ensure you get the best terms based on your financial situation.

Step 7: Apply for Your New Mortgage

• Gather Documents: Lenders will require documents such as proof of income (payslips, tax returns), bank statements, and details of your debts and assets.
• Mortgage Assessment: Your lender will review your financial position and perform a credit check. They may also request a property valuation.

Step 8: Review and Accept the Offer

Once your new lender makes an offer:

• Carefully Review the Terms: Check the interest rate, any fees, the length of the term, and any flexibility options.
• Get Legal Advice: Remortgaging and changing lender will require a conveyancer much like buying a new home, however, most lenders will provide the legal work involved with a basic remortgage completely free of charge if you use their chosen law firm.

Step 9: Finalise Your Remortgage

• Sign the Agreement: Once you accept the offer, sign the agreement. If switching lenders, your new lender will take over the process.
• Settling Fees: Any applicable fees (e.g., valuation, arrangement fees) may need to be paid upfront or added to your mortgage balance.

Step 10: Enjoy Your New Mortgage

• New Payments: Your new monthly mortgage payments will begin according to the terms of your new deal.
• Stay on Track: Regularly check your payments and ensure everything is in order. We can help monitor your mortgage and keep you informed of the best options going forward.

Additional Tips

• Start Early: The remortgage process can take several weeks. Begin well before your current deal ends to avoid lapsing onto a higher standard rate. We recommend 4-6 months before the deal ends.
• Fixed vs. Variable Rates: If you prefer stability, a fixed-rate mortgage is ideal. If you’re comfortable with some risk, a variable rate could offer lower initial payments.
• Review Regularly: Even after remortgaging, it’s important to reassess your mortgage options periodically.

Why Work With a Mortgage Broker?

As your mortgage broker, we’ll help you:

• Navigate the remortgage process with ease
• Compare the best deals available
• Find a solution tailored to your needs
• Save time and money by avoiding unsuitable offers

Let us help you secure a better deal. Contact us today to get started with your remortgage!