How Does Remortgaging Work?

From wanting to consolidate your debts to freeing up more money each month, there are a number of instances you might need to remortgage in your lifetime.

It’s also an essential step for when you need to refinance at the end of your mortgage term. You should start to look for a remortgage in good time as this will give you the best opportunity to find a favourable rate. But how does remortgaging work?

Remortgaging allows you to change your current mortgage to a new one. This could encompass a change in the type of mortgage you have, such as changing from a residential to a buy-to-let, or it could be as simple as gaining a more favourable repayment rate.

The process and terminology will be very similar to getting a mortgage in the first place, but there are some differences. To make the process seem easier, we’re listing the key remortgaging steps below.

Remortgaging steps:

Decide if it’s right for you

With so many reasons why you might decide to remortgage, it can be tricky to weigh up whether it’s the best course of action. If you’re looking to remortgage by choice rather than out of obligation, it’s especially important to get advice from a professional mortgage broker. They will be able to weigh up your options and whether or not it’s prime time for you to refinance. If your loan-to-value ratio is in your favour, due to your property increasing in value for instance, it could be a great time to remortgage.

Shop around

Once you’ve decided that a remortgage is the best course of action, you’ll want to shop around for the best rate. You may opt to go to lenders directly or you can always seek the expert advice of a mortgage broker.

New lender? Time to find a conveyancer

One key difference between getting a new mortgage and remortgaging is that if you’re remortgaging with a new lender, you will need to enlist the help of a conveyancer.

Speak to Agentis today

If you’re looking to remortgage, speak to Agentis today. With over 80 years’ combined experience working in the industry, we know our way around the market to secure our clients the best rates for their circumstances. With a friendly and approachable service, contact us to arrange your free initial consultation with us today. We make remortgaging advice simple.

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