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Mortgages

Discover Low Rates and Flexible Terms with Our Re-mortgage Service

Maximise the potential of your home with Re-Mortgaging - the smart and cost-effective solution for refinancing and unlocking the value of your property.

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We make Re-mortgaging easy!

Helping clients re-mortgage their properties forms a large part of our business. We have a team of dedicated re-mortgage experts who are on hand to source you the best deal on the market, tailored to your individual needs. We can handle the entire process for you, from completing paperwork and instructing valuations, to liaising with our specially chosen panel of solicitors.

Re-mortgaging is a good way of keeping ahead of your finances, as your circumstances can change over the course of your product term. We often find that clients who have had their mortgage for a long time see a significant decrease in their monthly payment after using our service.

What does re-mortgaging mean? It means changing your mortgage deal by switching to a new lender or getting a better deal from your current lender.

How much could I remortgage for?

If you are wanting to re-mortgage to borrow more money you need to consider your regular financial commitments and the loan-to-value (LTV) ratio. Ordinarily, lenders don't like to go above an 85% LTV on a re-mortgage.

This means you may not be able to borrow more than 85% of your property's value via a re mortgage. As an example, if your property is valued at £200,000 and your current mortgage is £150,000 you will have an LTV of 75%, this means you could borrow an additional £20,000 which would take you to 85% LTV.

Can I re-mortgage my Buy To Let? Yes! In the same way, as you would re-mortgage a residential property, the LTV's on a Buy To Let do tend to be lower with many lenders not wanting to loan over a 75% LTV.

When is the best time to re-mortgage?

Ordinarily, you need to have had the mortgage for at least 6 months before you can re-mortgage. But at the very least you shouldn't re-mortgage until the end of any Early Repayment Charge penalties have passed.

You can still re-mortgage within your ERC penalty period but this will mean you will pay more in the long run. We would recommend you start looking around 3-4 months before the end of your current deal. We can look at a re-mortgage at any time, and will always advise you on the best options and if it's worth switching early.

If you are out of your current deal and are paying the lender's standard variable rate (SVR) you should contact us.

Why would I want to re-mortgage?

There are various reasons why people might re-mortgage, here are some examples.

- To get a better rate

This is by far the most popular type of re-mortgage and can help you reduce your loan repayments by hopefully switching to a better rate.

You may have had credit issues in the past which are now sorted, because of this you might have been placed with a subprime lender but can now look at more mainstream mortgages. Or you may be out of your mortgage term and be on the lender's standard variable rate (SVR), a remortgage is a must as you will most definitely be paying more in this scenario.

Other reasons for a re-mortgage could be to reduce the loan to term value (LTV). This could be achieved if your property has increased in value or you have a large lump sum to put toward your mortgage.

- To get better flexibility

Not all re-mortgages are about saving money, some are about better flexibility or even both! You may have accumulated savings and would like to switch to an offset mortgage, or you may want a product that lets you take a payment holiday.

Most commonly your personal situation may have changed and you may want more flexibility over your finances.

- To borrow more money

If you are looking to release capital tied up in your home a capital raising re-mortgage could be the answer.

You may already have a low LTV, such as 40% - 50%, or your property may have increased in value over time meaning the LTV has decreased. Either way, you would have additional capital you could raise funds on. An alternative to this could be a 2nd charge loan, we will discuss this with you to make sure you are getting the best outcome depending on your needs.

This sounds like a great idea to free cash tied up in your home, but it can have its drawbacks. For example, you will be in debt longer which will cost you more in interest, your monthly repayments will increase and insurance-linked premiums could also go up. You can spend the capital raised for almost any purpose, however, some lenders restrict what they will lend for, for example, most don't like to fund tax bills.

We would always recommend you take professional advice, here at Hello Mortgage we will take the time to explain the pros and the cons to make sure you are well-informed and can make an informed decision.

- To pay my Help to Buy loan

If you are unsure what an HTB loan is please click here to read our guide. We help many people re-mortgage their property to repay all or part of their HTB Government loan before interest becomes due.

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Should I not just stay with the same lender?

It can take around 6 weeks to switch mortgages with your current lender and a little longer if you are changing lenders. We'd normally say you should speak with us around 3 months before your current deal expires.

How long does it take?

Let's assume you are out of your fixed-term deal and there are no early repayment charges.

You will need to pay broker fees (we charge a fixed fee on completion which is detailed in our initial disclosure document) and legal fees. You need a conveyancer or solicitor to deal with the legal aspect of your re-mortgage. There may be other charges imposed by the lender such as product fees and valuation fees. We will fully discuss these with you.

Many lenders offer free re-mortgages via cash back option, so depending on your circumstances the process could be free!

How much does it cost to re-mortgage?

Let's assume you are out of your fixed term deal and there are no early repayment charges.

You will need to pay broker fees (we charge a fixed fee on completion which is detailed in our initial disclosure document) and legal fees.  You need a conveyancer or solicitor to deal with the legal aspect of your re-mortgage.  There may be other charges imposed by the lender such as product fees and valuation fees.  We will fully discuss these with you.

Many lenders offer free re-mortgages via cash back option, so depending on your circumstances the process could be free!

The Pros and Cons of Re-Mortgaging

Re-mortgaging can be a great way to save money and become more flexible with your finances, but it is not without its drawbacks. You may need to pay for the process by either paying fees or taking on additional debt. It can also take some time, so you will not see the benefits straight away.

Pros:

  1. You can access capital tied up in your home.
  2. You may be able to reduce the amount of interest you are paying.
  3. A re-mortgage could give you more flexible payments and allow you to pay off your mortgage more quickly.
  4. it’s possible you could take advantage of better deals or cashback offers by switching lenders.


Cons:

  1. You may have to pay fees for the process such as legal and broker fees as well as lender product and valuation fees.
  2. Your current lender may offer better rates, so it’s worth checking before you switch.
  3. It can take some time to process a re-mortgage.
  4. It may increase your monthly payments or extend the length of the loan, resulting in more interest charges over time.
  5. Insurance premiums could potentially go up after a re-mortgage.

It is important to weigh up the pros and cons of re-mortgaging before you make a decision. This may mean speaking with a mortgage advisor or taking some time to research your options.

Ultimately, a re-mortgage can be a great way to save money if done correctly, but it’s important to understand what’s involved before taking the plunge. Our experienced advisors at Hello Mortgage can help you to understand if a re-mortgage is right for you. They will explain the process, analyse your current situation and assess any potential risk associated with re-mortgaging. We will then provide tailored advice so that you make a decision that’s in your best interest. Contact us today to discuss your options.

Conclusion

Re-mortgaging can be a great way to save money and become more flexible with your finances. However, it is important to consider all the pros and cons before making a decision. Make sure you take into account all additional fees, as well as any potential effects on insurance premiums or monthly payments.

It’s also worth checking with your current lender to see if they can offer you a better deal. Speak to a mortgage advisor at Hello Mortgage or take the time to research your options, so that you can make an informed decision on whether re-mortgaging is right for you.