First direct remortgage (How to get one)

In this brief guide, we will cover First direct remortgages and where you can obtain a first redirect remortgage.

Getting a first direct remortgage

You may want to consider a first direct remortgage if you currently have a first direct mortgage and are considering remortgage to a better rate with First direct. This is known as a product transfer.

You may want to get a first direct remortgage:

To save money

Remortgaging to a better mortgage deal when your fixed-rate mortgage deal comes to and end could be an easy and straightforward way to save some money. This is especially true as most mortgage lenders will move you to their standard variable rate mortgage product which usually has a higher APR when your fixed-rate mortgage deal comes to an end.

You may also be able to save on interest charges on your current mortgage by overpaying your mortgage. You can see how much you may be able to save by using the first direct overpayment calculator.

to release equity

You may also want a first direct remortgage if you want to release equity. This could be the case if your property has risen in value and you now have considerable equity in the property which you now want to convert to cash so you can go on a holiday or fund other purchases.

To release equity with a first direct remortgage you will simply get a mortgage which is bigger than the current balance you owe on your current mortgage. Your conveyancer will then pay you the balance that is left after your original mortgage balance has been paid off by your new remortgage lender.

To borrow more money

You may want a first direct remortgage if you want to borrow more money. This is also known as a further advance if you have your original mortgage with first direct.

Should you get a First direct remortgage?

When considering if to get a remortgage, you may want to consider if getting a first direct remortgage is the best course of action. You may want to consider getting a mortgage broker who may be able to advise you on all the mortgage products available to you.

The mortgage broker may be able to assess more products than one mortgage lender and hence a first direct remortgage may not be the best option.

What is the first direct remortgage process?

The first direct remortgage process could take between 6 to 8 weeks and you may be required to have some of your documents ready to ensure the process runs smoothly.

Some of the documents you may require for your first direct remortgage include:

3 months worth of bank statements

Your identification documents

Any utility bill from your current address

3 months worth of payslips

Your mortgage statement

Your mortgage redemption statement

Your P60 tax return

Your SA302 calculation form if self-employed

Your company accounts or self employed accounts if self-employed

To get your first direct remortgage you won’t need to have any face to face meetings and everything can be done online or over the phone.

When getting a first direct remortgage you wont need to pay for most fees aside from a valuation fee for your property.

Use a mortgage broker for your mortgage in principle

You may want to use an independent mortgage broker to help you get a mortgage on your new home.

Mortgage brokers are important as they can access mortgage products from across the whole of the market in some cases.

This could be over 11,000 mortgage products. This may have some advantages rather than going directly to a mortgage lender.

A mortgage broker will look to understand your financial circumstances and then provide recommendations on which mortgage products may be suitable for you based on your mortgage affordability.

After giving you these mortgage recommendations, most mortgage brokers will seek your consent to apply for a mortgage in principle

This will allow you to shop for your home as more estate agents and sellers may take you seriously and it will also give you confidence that your mortgage is indeed a possibility before you make a full mortgage application. 

Once you have found a home you want to buy and are satisfied with the mortgage offer for your mortgage then the mortgage broker will then look to get you a mortgage offer.

This will come with a key facts illustration document that details the features of your mortgage including how much you will pay per month.

It will also contain information on if there are any limits such as early repayment fees, or annual overpayment limits.

If you are happy with everything you can then go on to secure your mortgage with the help of a conveyancer.

Your conveyancer will manage the legal searches on the property to ensure there aren’t any issues with it.

They will oversee the sales agreement to ensure it is in your best interest, they will manage the transfer of mortgage funds, exchange contracts with the seller or their conveyancer, and set a completion date with the seller or their conveyancer.

This will then bring an end to the conveyancing process, at which point you will receive the keys to the house and move in.

If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.

You can also contact the debt charity “Step Change” if you are in debt and need help.