What is the remortgage process in the UK?

What is the remortgage process in the UK?

Remortgaging in the Uk is a rather straightforward process.

First of all, you will need to analyse if you have enough equity in your current mortgage and if your mortgage affordability at the moment will make you eligible for remortgage products which are currently in the market.

You may want to consider the remortgage process if your mortgage affordability may not make you eligible for cheaper mortgage products than you are currently on as once you get a mortgage most people will usually stay on the mortgage lenders fixed rate for the initial term of the mortgage and once the fixed term ends the mortgage lender will typically move you on to their variable rate mortgage.

The mortgage lenders variable rate mortgage will be more expensive than their fixed rate mortgage and at this point, you may want to consider the remortgage process to see if you could possibly get a cheaper mortgage and continueto afford making your monthly mortgage repayments.

To assess your mortgage affordability for a mortgage in the UK you will likely need a mortgage broker.

If you have bad credit or are self-employed then you will likely need a bad credit mortgage broker and a self-employed mortgage broker respectively.

The remortgage process in the UK

  1. Get a suitable mortgage broker
  2. Get mortgage ready
  3. Get a conveyancer
  4. Get a remortgage offer
  5. Complete on your remortgage

Get a suitable mortgage broker

The first thing you will want to do when trying to assess if you can remortgage your current property will be to get a suitable mortgage broker who can help you look at the whole of the mortgage market, look at your financial situation and let you know if you can get a remortgage.

In some cases, getting a remortgage may be more complex and may involve more third parties.

Example, if you have a shared ownership mortgage or a help to buy mortgage then you may need to get permission from the regional help to buy agents before getting a remortgage.

Get mortgage ready

The remortgage process is somewhat like the mortgage process in the fact that you are just getting another mortgage to replace your existing mortgage.

This means the remortgage lender will likely take you through the process you took when you initially got your first mortgage.

The remortgage process could include:

Checking your income

Checking your employment status

Checking your credit score and history

Checking the value of your property

Analysing your future financial plans etc

Once this is done the remortgage lender may be in a position to give you a mortgage offer

Get a conveyancer

The remortgage process, just as the mortgage process, will include a conveyancer.

A conveyancer will help you complete any additional searches that may be needed on the property, redeem your old mortgage from your current mortgage lender with funds sent to you by your new mortgage lender and ensure your mortgage agreement is fine and finally ensure that the correct charge has been placed on the property and that you are no longer in any agreement with your old mortgage lender.

Conveyancers have a huge role to play in the remortgage process and you should hire one as soon as you can.

Get a remortgage offer

Once your mortgage broker has analysed your situation through a mortgage fact find they will then advise you on which mortgage lender may be best suited to your current and future needs. Obtain a mortgage offer from the mortgage lender by submitting a remortgage application and explain this remortgage offer to you with the key facts illustration document provided by the remortgage lender.

Once you understand the terms of your new mortgage you can then begin to conclude the remortgage process by accepting the offer and then instructing your conveyancer to close on the remortgage.

complete on your remortgage

The remortgage process from this point will rarely have to do with you as the conveyancers from the mortgage lender and yourself will finalise the last few points and then complete on the remortgage.

During this stage of the remortgage process, the remortgage lender will carry out a valuation but this is likely to be a desktop valuation rather than a more thorough in house valuation.

You can view a more detailed timeline of the remortgage process here.

Getting a remortgage can be a very difficult process if not handled with care.

If you are considering getting a remortgage then using a mortgage broker may be a good choice as remortgage brokers usually have access to many more products than any specific mortgage lender.

Remortgage brokers will also usually have access to specific deals from mortgage lenders as well as experience on which mortgage lenders will be more likely to accept your case. This will help you avoid getting rejected on a mortgage application and having to build credit due to the damage a rejection might do to your credit score.

If you have bad credit or are self-employed then specialist mortgage brokers such as bad credit remortgage brokers or self-employed remortgage brokers may be useful.

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.