When your current mortgage rate is due to end, you have the option to stick with your current lender, or to go back to market and review other mortgage options. There are a few things to weigh up before you make a remortgage decision, and this is something we can help you think through so you can decide which option is right for your circumstances…
These are some things to think about.
Is moving your mortgage to a new lender the right option?
As part of the mortgage review process with a client we’ll always look at what the current lender will offer and research across the mortgage market for a comparison. If you do stay with the existing lender this is usually called a rate-switch or product transfer depending on what term the lender prefers.
What are the benefits of staying with your current mortgage lender?
As they already have the legal charge over the property there is no need for any more legal work. The lender generally holds a valuation figure on the property so there is no need for a new valuation, although in some instances we do request one, especially if the property has been renovated or extended.
So, all you really need to do is select the most suitable new mortgage product from the options we provide before going over any lender specific paperwork. Once that’s done the remortgage will take effect when the old one finishes. A very easy and simple process.
As always we will have discussed the benefits of each option as part of your mortgage review and made sure that you are comfortable with the remortgage payments based on your current circumstances.
But what if the current mortgage lender isn’t offering the right deal?
Here’s where our mortgage research comes in and will allow you to properly compare all of the relevant options. That process will also mean that we check affordability and criteria to check whether a move to a new lender is actually workable.
How much does a remortgage cost?
Most lenders offer a selection of options that include free basic valuations, free legal transfer services or cashback products where the cashback can be used to cover the cost of using your own chosen conveyancer. They will also offer a selection of interest rates with differing arrangement fees. All of which we will discuss with you in order to help you decide on your remortgage. Remember, all of our mortgage advice is still free of charge to you.
How long will it all take?
As with any mortgage there are some things you can prepare in advance to make the process go as smoothly as possible.
- Proof of ID – passport or driving licence
- Proof of address – utility bill dated within 3 months of the application
- Proof of income – payslips or proof of self-employed earnings
- Bank statements, making sure that they show your correct home address
- Credit card statements, again making sure that they are registered the correct address
- You could also check your own credit report, from somewhere like Checkmyfile*.
If you have any questions that are not covered in this article, you might find an answer in ‘How Long Should a Remortgage Take?’, or feel free to pick up the phone.
MK Mortgages is a fee-free whole of market mortgage advice service. Contact us today with any questions at all, we’re happy to help.
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