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Are you thinking about remortgaging but are unsure how it works?

Thankfully Homeward Legal, with its expertise in property conveyancing has created a handy guide to remortgaging. Read on to benefit from all the information we provide for you to decide about remortgaging.

What is remortgaging?

Remortgaging is the change from your current mortgage for the home you own to another mortgage. You can do this with your current lender or through a new lender. 

Remortgaging means that by taking out a new mortgage you can pay off your existing one. Then, essentially your new monthly mortgage payments pay off your new mortgage. 

It can be beneficial to get a remortgaging deal because it can:

  • reduce your current monthly payments
  • allow you to you finance other things
  • pay off your mortgage quicker if you decrease the overall timeframe by increasing monthly payments

Reasons to remortgage

Although people often remortgage when their current mortgage deal comes to an end, there are also a variety of reasons why you may choose to remortgage. We list some common ones below.

1. To save money

Some people choose to remortgage as a way to save money. Remortgaging deals can bring about huge savings and some examples of when this may occur are when:

  • your fixed-rate deals have ended
  • you are currently on a lenders' variable rate mortgage
  • your home has increased in value 

2. To protect finances

You may decide to remortgage to protect your finances. This could be done for several reasons:

3. To get a better mortgage or rate

Your financial circumstances may change, particularly now with the cost of living crisis upon us. Therefore, you may remortgage to get a better mortgage rate to reduce your monthly repayments. Getting a better deal may make your mortgage monthly payments more affordable. Alternatively, you may have been promoted or given a pay rise, and therefore can afford higher monthly payments across a shorter payment time frame.

Remortgaging, for these reasons, does not require you to borrow more money but could require you to pay an exit fee to leave your current mortgage deal and you may be due redemption charges. However, regardless of the fees and charges, it may still be worth it financially in the long run.

A better mortgage can also include flexible mortgage features. This can allow you, for example, to:

  • pay back more when you can afford to
  • take payment breaks

4. To borrow more money

A reason to remortgage may be because you need to borrow more money for an up-and-coming expense.  Therefore, you increase your borrowing to enable cash to be freed up

You may be able to do this if you have equity in your home which means that you owe less on your current mortgage compared to the value of your home. However, borrowing more money requires you to prove you can afford it.

Reasons for remortgaging to borrow money may be because an expense is on the horizon and you need to free up money to pay for this. For example:

  • home improvements
  • home energy efficiency measures
  • consolidation of debts

What is the remortgaging process?

If you are considering remortgaging you need to know how to go about it and what the process is. Essentially, this takes place over five stages as follows:

1. Familiarise yourself with the details of your current mortgage and get your paperwork on standby

There is no point in looking to remortgage if you're not sure about your current mortgage. Otherwise, you will have nowhere to start in terms of comparing and finding a better deal. Familiarising yourself with your current mortgage details means looking at:

All of the above will not only help you understand what you currently have but also your suitability for remortgaging.

You will also need to get your paperwork ready for any new lender. This can include:

  • payslips
  • bank statements
  • P60 tax statements 
  • tax returns for where you are self-employed

2. Get to a fee-free mortgage broker

Once you have the details of your current mortgage to hand, you should speak to a fee-free mortgage broker. They can help you understand if you will save money by remortgaging and if so, can compare your current lender to many other mortgage deals on the market. When making companions they will include in their calculations:

  • penalties
  • fees

3. Get an agreement in principle and also contact your current lender 

When you think you have found a better mortgage deal, before making any decision you can ask for an online agreement in principle. This is not a formal offer but it helps you to understand how probable it is you will be offered the mortgage deal.

However, before making any decisions and with the information the mortgage broker has given you, see if your current leader can match the best deal.

4. Apply for your remortgage

Once you decide to take the leap and remortgage, it is time to complete the application form with all the necessary information to start your mortgage. The lender will then assess the application and your suitability.

5. Ensure you have a good conveyancing solicitor

Last, but certainly not least, you may need to get yourself a conveyancing solicitor to ensure that the legal process of your remortgage goes smoothly. You will need to do this if you go ahead with a new lender.

How long does remortgaging take?

Once you reach step four of the mortgage process detailed above which is completing your application for a remortgage deal, the process can take between around 18 - 40 days. However, this is only an estimate. 

Therefore you should give yourself an extra month on top of this timeframe to allow yourself time to look for a new mortgage.

Do I need conveyancing to remortgage?

If you're remortgaging you will not always need a conveyancer to remortgage.  You will not need one if your mortgage is with your existing lender. This is where you may be, for example:

  • borrowing further in your current deal
  • moving to a new deal with your lender which is termed a product transfer

You will only need a conveyancer to remortgage if you are using a new lender. This is because remortgaging requires new legal processes and paperwork, which need to be dealt with by someone who has the skills and knowledge to do so. 

A conveyancing solicitor can advise you on the fees and paperwork when you remortgage. Your conveyancer may need to:

  • conduct ID checks
  • carry out any property searches
  • collect funds from your new mortgage lender

Thinking of remortgaging?

If you are considering remortgaging, then you may need a conveyancing solicitor to help you. We at Homeward Legal can both advise if you do and help you further in the process..

At Homeward Legal, we have extensive experience in helping property owners like you in the process of remortgaging. So you can be assured that remortgaging with us will put you in good hands. 

Contact Homeward Legal at or send us a quick and easy message here. Whatever your conveyancing needs, we can assist.

Conveyancing is the exchange of property between you and another party. It, therefore, typically includes selling and buying but it can also include remortgaging. If you are thinking about remortgaging and need a residential conveyancing solicitor we have competent solicitors to assist you. Our solicitors are all regulated by the relevant bodies for both legal advice and conveyancing so are fully competent.

The property market is not always the easiest market to tackle,  and this includes if you're remortgaging. Deciding to remortgage is a huge step so you want to get it right. Your mortgage is likely to be your largest financial commitment. Mortgages have a massive risk factor so you must ensure that you get sound advice. At Homeward Legal we understand you may have questions and concerns and are always ready to help and reassure you where you are remortgaging.

Whatever your conveyancing needs, then contact us today at . If it is more convenient for you to drop us a quick line, you can do so here, And we can also provide a fast quote online to give you an idea of the low cost of letting us take care of your conveyancing needs.

Contact us for help with your conveyancing needs

At Homeward Legal, we can help you with all of your conveyancing needs. Our mission is to make buying a property simple, fast and cost-effective. We pride ourselves on having excellent property solicitors throughout England and Wales, who can guide you through your conveyancing processes.

Let Homeward Legal assist you with all your conveyancing needs. Call today. You can also send us a message here and get a quote online.

Last updated 14.12.22

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