Here’s How to Decide if Remortgaging is Right for You

Remortgaging is the process of either taking out a different or additional mortgage on a property you currently own. For example, you might remortgage your home to borrow money against your property, or to secure a better mortgage deal. The following information could, therefore, help you decide if remortgaging is right for you.

How Does It Work?

The first step you must take in the remortgaging process is to identify the total loan cost over a select period of time. The deal will ultimately be determined by whether you choose a fixed, tracker or discounted mortgage rate. You’ll also need to account for new lender fees, such as legal work or arrangement costs.

How Long Does the Process Take?

Remortgaging a property can be a faster process in comparison to buying a new home. Yet it can take an average of four to eight weeks, and may take a little longer if you have chosen to switch lenders.

How Does the Process Work?

Thankfully, the remortgaging process isn’t too complicated. You simply need to arrange your paperwork, secure the best deal on the market, and approach a lender. Once you have filled in the necessary documentation and answered any questions a lender has, you will then need to appoint dependable conveyancing solicitors in Leicester or your local area, who can handle every aspect of the property transaction on your behalf. All that will be left to do then is wait a few weeks until the lender signs off on the mortgage.

What are the Benefits of Remortgaging?

There are various benefits of remortgaging your property. For example, it can help you secure a better rate or deal on the family home, or it could help you avoid significant interest rate charges. It is, however, imperative to seriously consider each remortgaging deal to ensure you don’t make a decision you could regret in the future.

How to Secure the Best Remortgage Deal

The remortgage rate you receive will be determined by the deal you choose, as well as a variety of personal and property factors, such as your income, how much you want to borrow, or if you own the property outright. The rate will also be determined by the property’s current value and if it has increased since you first obtained a mortgage. You must also be aware that you will need to pass the same affordability calculations and credit checks you experienced when you initially bought the property.

What Economic Factors Can Affect Remortgaging Rates?

Not only can your income, deal and property value determine the remortgaging rate, but various economic factors can also affect your rate. For example, a strong property market could potentially increase the value of your home, so you’ll have a lower loan to value.

Yet if the property market has weakened since you first bought the home, your home will lose value. As a result, you might have no choice but to remain with the standard lender’s variable rate, as you might be unable to secure a better deal.