Remortgage

Could you take advantage of new rates?

The decision to remortgage is one that should never be taken lightly. If you are looking to remortgage and are on the search for a better rates then here are some of the steps to be aware of.

Remortgaging information & considerations

If you are considering remortgaging, make sure to contact our independent advisers who will consider all your circumstances as well as available deals before offering impartial advice about which remortgage options are right fro you.

In today’s competitive market, many borrowers choose to remortgage (switch their current mortgage to a new lender) or undertake a product transfer (take a new deal from their existing lender) every few years in order to take advantage of the new rates and products on offer of to fit changing life circumstances. Both options should be considered several months before any existing deal finishes.

A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME OR PROPERTY. YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

How much will it cost?

The main costs you might face when remortgaging are:

Early repayment charges

ERC’s are a penalty for leaving the mortgage before it comes to term, often calculated as a percentage of your loan value. Your lender will be able to advise you on ay ERCs that apply.

Average cost 1-5% of mortgage. So an outstanding balance of £100,000 could incur a charge between £1,000 to £5,000.

Lender’s arrangement fee

The administrative costs of organising you mortgages. This could be a flat fee or a percentage. Your lender will be able to advise of arrangement fees that apply to your mortgage.

Average cost: £0 – £2,000+

Higher lender charge

If the mortgage you are taking out is a sizable percentage of the property value (typically >90%), lenders may add a charge to insure themselves in case you default.

Average cost: 1.5% of the mortgage, so £3,000 on a £200,000 mortgage.

Valuation fees

Cost of hiring a surveyor to assess the property’s condition and value

Average cost: £150 – £1,500 depending on the value of the property.

Legal fees

Cost of hiring a solicitor for the process of preparing the deeds and carrying out the conveyancing process.

Average cost: £500 – £1,500 plus VAT

Booking fees

A one-off application fee for the mortgage, “booking’ or reserving the capital while processing your request.

Average cost: £99 – £250

Talk to us to arrange an appointment today.

Call us on 1964 545965

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