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, 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.
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How much could I re-mortgage 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 a 85% LTV on a re-mortgage. This means you may not be able to borrow more than 85% of your properties 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 a 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 its worth switching early.
If you are out of your current deal and are paying the lenders standard variable rate (SVR) you should contact us.
Why would I want to re-mortgage?
There are various different reasons why people might re-mortgage, here are a some examples.
Re-mortgage 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 sub prime lender but can now look at more mainstream mortgages. Or you may be out of your mortgage term and be on the lenders standard variable rate (SVR), a re-mortgage 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 towards your mortgage.
Re-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.
Should I not just stay with the same lender?
Not necessarily, but we will check this for you.
Your current lender may have a retention product that is only available via intermediaries such as Hello Mortgage. Our re-mortgage team based in our South Shields office will check all lenders including any intermediary only deals for you.
Just like car insurance, energy suppliers and credit cards, its always worth shopping around.
How long does it take?
How much does it cost to re-mortgage?
It can take around 6 weeks to switch mortgages with your current lender and little longer if you are changing lenders.
We'd normally say you should speak with us around 3 months before your current deal expires.
Re-mortgage 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 draw backs. 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 pro's and the con's to make sure you are well informed and can make an informed decision.
Re-mortgage to pay my Help to Buy loan
If you are unsure what a 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. This is very similar to the above, but the funds are only used to clear the government loan.
Lets 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!
Hello Mortgage Limited is registered in England and Wales. Registered Office: Suite 20, Cookson House, River Drive, South Shields, Tyne & Wear, NE33 1TL. Company Number: 10414170. DPA number ZA332902
Hello Mortgage Limited is an Appointed Representative of Ingard Financial Limited which is authorised and regulated by the Financial Conduct Authority 450731.
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