How to Remortgage your Home

Remortgaging is a process in which a person transfers its mortgage from one lender to another for a better deal and to make some savings on the monthly repayments. The process of remortgaging is a lengthy process and may require you to follow step-wise process:

  • The first thing you should do is to get your paperwork at one place. If you planning for remortgaging then you should start thinking about it at least 5 to 6 month before your old mortgage deal ends. Doing the paperwork correctly will help you know how much you currently paying on your mortgage and what will be the right deal to remortgage the property.
  • The most important thing to know before you remortgage your property is to know how much will it cost and what will be the benefit of it. The important things to look for is any terms and conditions which apply after your current mortgage deal ends, the exit fee charged by your current lender and the rearrangement fee that the new lender will ask for. Calculate the cost and the profit that you will have when you remortgage your property.
  • You should not just assume that your ERCs will end with end to your discounts or fixed rates. Sometime the loans have additional tie-ins which may ask you to pay lenders SVR for another set of period.
  • The next step would be to look into your factsheet to check for the deal which will suit your remortgage terms and conditions and also things like fixed rate, variable rate and tracker etc. There are various sites which provide comparison of different lenders and their deals. You can also check the financial pages of leading newspapers.
  • You should workout the fees that are involved in remortgaging your property. There are a few lenders who may work out on the legal and valuation costs but the rate of interest may be high on the same. Similarly the total cost of remortgaging can be considered under the loan but you should remember that interest will be levied on the same as well.
  • It is advised that once you have chosen your deal for remortgaging, you can ask your current lender to match it and if he agrees it may save you time, hassle and money.
  • The next step would be to apply for the new deal
  • Last but not the least, wait for the new lenders reply.