Step by Step Guides Remortgaging

Looking for a better deal or to release some equity on your already mortgaged property? This guide lists everything you should know about the remortgaging process.

Sections:

1. Why Remortgage?
2. Current Mortgage
3. Select Mortgage
4. Current Details
5. Calculations and Timeframe
6. Check Penalties
7. Improvements
8. Survey, Complete

5. Calculations and Timeframe

You can calculate how much your remortgage costs will be by adding up the following:

• Redemption penalties (if any), which may be charged if you pay off or switch your mortgage within a certain time period
• Arrangement fees (if any)
• Valuation fees
• Legal fees: between £300-£500, unless your new deal pays for it. Legal costs should be much lower than when you bought the property, as there are no contracts to prepare and there's no stamp duty to pay.

Compare the savings produced by the switch to these costs. Some lenders are willing to take care of the valuation and legal bills for you to switch to them, which should save you some more money straight away. This can be useful for a small mortgage; but on a larger loan it may be better to look for the lowest rate rather than the best incentives. If not, it may take a few months to even up the savings and costs.

It's important to work out the redemption costs carefully, because even if you move to a new lower rate, it may be many years before you receive any real benefit.

Time-scales
Times average a few days to over a week, but you should talk to your adviser about the timeframe of the transaction. Your new deal might be delayed if there be any complications in the process.

If you're coming to the end of a fixed-rate or discount period you can start shopping around some months in advance.

You can switch from one fixed rate to another to save some money. Since most mortgage offers last for around three months, you can have a new deal sorted out to start the day the special-offer rate ends.

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• Remortgage Specialists

  A mortgage brokerage providing excellent home loan solutions for people with poor credit. Specialists in remortgages for people with bad credit.

  http://www.findthatmortgage.co.uk

• Bad Credit Mortgage Brokers

  We specialise in bad credit mortgages and remortgages for people with an imperfect credit history.

  http://www.findthatmortgage.co.uk

• Mortgages for the self employed

  For too long the self employed, contractors and freelancers who are paid by way of bonus or commissions have been discriminated against by mortgage lenders.

  http://www.selfcertmortgageuk.co.uk