You may have to pay an early repayment charge to your existing lender if you remortgage
Residential Remortgages
Remortgaging allows you to switch your mortgage deal to either save money or borrow more. It’s a great option for homeowners who want to explore better rates or release equity from their property.
Application Process:
Review Your Current Mortgage: Check your mortgage term and any early repayment charges that might apply.
Shop Around for Deals: Look for competitive rates and consider if you want to remortgage with your current lender or switch to a new one.
Apply for a Remortgage: You’ll need to provide financial documentation, such as proof of income, ID, and details of your current mortgage.
Valuation & Affordability Assessment: The new lender will conduct a property valuation and assess your affordability based on current income and debts.
Receive Your Remortgage Offer: Once approved, your new lender will pay off your old mortgage, and you’ll begin repayments on the new deal.
Factors Lenders Consider:
Loan-to-Value (LTV): Lenders assess the ratio between your mortgage amount and the property’s value.
Credit Score: They’ll check if your credit score has changed since your initial mortgage.
Affordability: Lenders need to ensure you can afford the repayments, especially if borrowing more money.
Current Mortgage Terms: If you’re locked into a deal with penalties for early repayment, this could affect your decision to remortgage.
Top Tips
Start Early: Begin looking at remortgage deals several months before your current rate expires.
Consider Fees: Factor in valuation fees, legal fees, and any early repayment charges from your existing mortgage.
Use Equity Wisely: If you’re releasing equity, ensure it’s for a purpose that benefits you long-term, like home improvements.
Mortgage repayment calculator
Work out your repayment
Looking for a Residential Mortgage?
If you’re getting on the property ladder, a Liverpool Mortgages can help you navigate the house buying process.
