If you are considering remortgaging your home, then our experienced and knowledgeable Remortgage solicitors are on hand to help you throughout the process.
What Is a Remortgage?
Remortgaging your property is where you change the mortgage that is currently secured on your property to another lender.
There are many reasons why you might choose to remortgage a property. You may wish to change your lender because:
- You can benefit from a better interest rate with another lender. This could make a significant difference to what you repay each month over the remaining length of the mortgage known as the mortgage term.
- You wish to borrow more money than is currently owing under the current mortgage.
- You wish to extend the borrowing term to lower the monthly repayment costs.
- You wish to release some of the equity.
- You wish to switch from an interest-only mortgage to a repayment mortgage or vice versa.
- You wish to take out a specific mortgage to enable you to let the property to a tenant.
It is important to consider that if you are currently in a specific mortgage deal then remortgaging may result in an early repayment charge, so it is important to work out whether the benefits of the remortgage will outweigh these.
Can I Remortgage My Property?
Remortgaging can help some homeowners save a substantial amount on interest or raise money for something they need such as home improvements. However, remortgaging may not be the best solution or may not be possible.
You can usually remortgage your property if your home has increased in value since you bought it which gives you more equity in your property. You can also remortgage if your financial circumstances are equal or better than when you got your current mortgage.
There are some situations where you may not be able to remortgage if your income has decreased significantly, the value of your property has decreased so you are now in a negative equity, your credit score has been negatively impacted, or the amount owed on your mortgage is small (usually if it is less than £25,000).
How Do I Remortgage My Property?
Remortgaging your property is like applying for a new mortgage. You will need to pass the same identity checks, as well as checks on your affordability and credit score. One of our highly experienced and knowledgeable remortgaging conveyancing solicitors can handle the legal side of the process for you. This will include checks and searches on your property, communicating between lenders and any valuation surveys required.
We will keep you updated throughout the process and will explain each step so you understand what is happening.
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