In this guide we’d like to share our top tips for getting started with a re-mortgage.

There are several reasons why you may want to re-mortgage, whether it’s because your current deal is coming to an end, you would like to borrow additional money against your home, or you simply want to achieve a better rate.

Whatever the reason, it can be a daunting experience. Following these tips will make starting the process easier, especially if this is the first time you’ve done it.

Refresh Yourself What Your Current Mortgage Is Before Re-mortgaging

Before you get started in re-mortgaging you should find your original documentation and give yourself a quick refresh of what your current position is. This is important because you will not necessarily remember the information accurately.

Go back to your documentation and check what rate you’re currently on and when this actually comes to an end. Take a good look at your current financial situation, such as your salary and outgoings, and compare them to when you got the original mortgage. If there is difference in your earnings and outgoings, make a note of this information. Having these details to hand will make the process quicker and easier for you going forward.

Check Your Credit Score Before Re-mortgaging

Next you want to check your credit score. Your credit score plays an important part in how lenders check your eligibility for a new mortgage. Ideally you want to make sure yours is as high as possible.

Follow the advice on the credit score checker, such as Experian, to improve your score before you start talking to lenders.

If you know your mortgage is coming to an end, it’s also a good idea not to take any new loans out or make any major changes to your financial situation, because this will affect your credit score. However, if you have already done this and then realised you need to re-mortgage, try your best to bring your credit score up as high as possible, by following their suggestions.

Understand The Fees Involved With Re-mortgaging

The next step is to calculate how much you will need for fees. If you re-mortgage/swap rates with your current lender, known as a product transfer, you are unlikely to be charged legal fees or a valuation fee, even if you are repaying early. Your lender may waive these if you commit to keeping your custom with them. If you re-mortgage with a new lender, you may find fees could be added to the loan amount. As the process of swapping mortgage lenders requires support of a solicitor, you may find there is a charge. However, many lenders offer deals that either include this cost free of charge. Some may offer some element of cashback to support with this cost.

It’s important to note that using the mortgage to absorb any of these expenses, means your monthly repayments will be slightly higher. Because you are increasing your loan amount, interest will be charged on the extra borrowing. Try and calculate these costs in advance, so you are prepared for the extra outgoings, if applicable.

Use A Mortgage Broker to Help With Your Re-mortgage

Using a mortgage broker is a highly recommended way to re-mortgage. They are experts in their fields and truly understand the market, lenders and the situations people are in.

Of course, we would say this as a mortgage broker, however even Money Savings Expert recommend mortgage brokers as a helpful and invaluable part of the process. Not only do mortgage brokers research. They are able to explain complex calculations and legal information in a way that you can understand. They save you the difficult task of working on that yourself and work with you until completion. This is especially helpful if you are very busy, concerned that re-mortgaging yourself is going to be overwhelming, or are worried about overrunning with the schedule.

Get Started on Re-mortgaging As Soon As Possible

Speaking of schedules ideally, you want to start the process of re-mortgaging as soon as possible. The mortgage process could take 2-4 weeks, but the legal part could be a lot longer. You may want to secure a new rate up to 6 months in advance of your current deal ending. This is how long mortgage offers are valid for and will protect you against any future rate rises, that may still take place. Likewise, the housing market is still very busy and there is no guarantee that solicitors will act that quickly. Giving yourself as much time as possible will also help in making sure all the legal paperwork is in place for when you need it.

Our top tips for getting started with a re-mortgage has a lot to do with preparation. Going back over your current mortgage details and giving yourself plenty of time, will make the process easier.

Check your credit score and understanding the fees involved. Doing this will give you a clear picture of your financial situation as it currently stands. That can help with decision making.

Finally, using a mortgage broker gives you your own personal re-mortgaging expert. This can significantly reduce errors or misunderstandings and give you access to the wider market-place. Learn more about how we can help you re-mortgage efficiently and affordably.

Did you know it’s super quick and easy to book an appointment with a mortgage advisor? Just click the link and a pick a time that suits you.