It allows you to ensure you always have the best mortgage to suit your specific situation. Although you do not have to remortgage, it’s worth looking into options when an opportunity arises to look into the deals available. There may be a suitable mortgage option by contacting a different lender, or you might be able to switch to a better offer with the lender you currently have.
Remortgaging may give you the best interest rate and more flexible terms for mortgages or an opportunity to get more cash in the event that you require. If you are remortgaging, there may be advantages to sticking with your current lender and the benefits of switching to a different lender. It is crucial to evaluate all the variables prior to making a choice.
You can remortgage with your current lender however, this is typically described as a “product transfer’. The process of transferring a product is not usually considered to be a an entirely new loan (unless you decide to take out a loan) however remortgaging with another lender is. The process could differ slightly.
The advantages of remortgaging the same lender is:
There are typically less costs to be paid since you will be able to eliminate charges for legal fees and valuation fees. The lender you currently have will conduct an internal index-linked valuation of your home to provide an approximate value for your house at the present date. Based on the updated valuation, the lender may provide you with a selection of options. It could be at the new loan-to-value threshold, as a result of market fluctuations or the accumulation of equity.
If you’re not buying the property from scratch Your current lender should to have your information on have from your initial application, therefore the procedure should be a lot easier. It’s a simple change for mortgage products.
If your circumstances have changed since the time you took the last mortgage, your existing relationship with the lender may benefit you in the event that, for instance you have experienced a change in your finances (perhaps you’ve switched your job , and are now earning less). Your lender will not require pay slips or other documents the only thing they’ll check is that you’ve maintained the mortgage payments and make sure whether you’re not in arrears.
It’s generally quicker, however refinancing is not something you need to be done in a hurry. A simple transfer of property could be completed in as little as 30 minutes, while the process of remortgaging with a different lender usually requires a minimum of 4 weeks because of the credit check as well as an affordability check. the appraisal of the property, and the legal paperwork.
The drawbacks of a remortgage with same lender are:
It is possible that you won’t receive the best rate available. If you limit yourself to one lender can mean that you could possibly miss opportunities to get better deals on the mortgage market by other lenders. We recommend looking around to find out what else is available and something the mortgage broker will assist you with.
It is possible to receive biased advice. Your lender might urge you to stay with them as they aren’t looking the loss of your work leaving you lost.
What about remortgaging using an alternative lender?
There is no obligation to stay to the same lender over the term the term of your loan. This isn’t a one-time deal. A lot of people switch to several lenders over time to get the most favorable rates.
The benefits of remortgaging the same lender is:
You’ll be able to access many more deals. The current deals from your lender are just a small fraction of the mortgage market overall. The process of swapping lenders may not be the same as staying with the same one , but it is certainly an investment in the long run should you locate the perfect deal. If the thought of shopping around is daunting and overwhelming, we’ll help you discover the best deal for your needs.
The process of switching lenders can come with one or two benefits for example, cashback, free valuation , or no legal costs. A new lender may offer incentives to attract new customers, for example, promotional offers. The lender you currently have will probably not offer the same incentives to retain you.
The valuation process will performed on the property you own. While there’s typically an expense associated with this, a valuation could be beneficial for you as you could discover that you have a higher Loan Value (LTV) ratio than you did when you last examined. In general, the smaller the percentage of LTV is, the higher the mortgage rates you’ll receive.
The drawbacks of remortgaging the same lender is:
There are costs involved. If you are switching mortgage lenders you could be required for an exit fee from the lender you are currently with. You’ll need a lawyer who specializes on conveyancing (property law) to prepare the necessary legal documentation and will be charged costs for legal services. Most likely, you’ll need an updated valuation of your property , which you’ll usually need be able to cover. But there are mortgages that offer these services for free. In addition, if you’re locked into a fixed rate arrangement with your lender of choice and you decide to leave before the fixed term expires You may be required be charged an earlier repayment fee.
It’s also more time-consuming since you’ll need complete your application again and begin the process starting from the beginning. A new lender has complete all their usual affordability checks as well as examine your financial situation prior to accepting an offer.
Why do you need a mortgage broker or advisor?
If you’re thinking about it, do you want to consider an remortgage deal with your current lender or would you be better off seeking an alternative deal with another lender?
As mortgage brokers who are independent We have access to the entire market for financial services and are able to access deals that consumers might typically not have access to. This broadens your options in your search for the perfect mortgage. After taking a look at your needs and needs, we’ll only present you with the options that we believe will work for you, thereby saving time and effort and maybe avoiding confusion or rejections on a number of applications.
We’re also here to give you as much impartial advice as you require. We’re totally impartial and we’re focused on what’s best for you, and not other person. Your mortgage could be among your largest home expenses, and it’s crucial to get it working for you. Contact our experts for honest advice and advice on refinancing.
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