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What is involved in a
Remortgage?
Mortgages

After your initial mortgage deal term, your interest rate will usually revert to your chosen bank�s Standard Variable rate (SVR). In most cases this will mean that your monthly payments will increase by around 2% hence the reason for doing a remortgage. In an ideal world you will start the remortgage process at least 2 months before the end of your deal term which will allow enough time to search the whole market, apply for the best mortgage and allow time for the process to complete in time to replace your old mortgage deal.

Considering the possible savings that can be achieved by finding a lower interest rate or the increased costs and payments associated with the wrong product, remortgaging is not to be taken lightly and must be seen as an opportunity. Relying on your independent advisor will ensure that you have a professional person searching the entire market for the best possible deal. Your advisor will negotiate with the bank and do the application on your behalf and guide you through the maze of products and potholes. Using specialised software systems, only available to independent advisors, we can search the entire market and compare mortgages to the last detail. We are regulated by the Financial Services Authority (www.fsa.gov.uk) which means we adhere to the highest standards set by them and in most cases we exceed their requirements. For the use of one of our independent advisors we will charge you a small administration fee, but you will receive exceptional guidance and service that is guaranteed. If you are not completely satisfied with your advisor or we can not secure you a mortgage, we will refund the administration fee you paid. Follow the link for more information on our fees and charges.

How do I start the process?

Contact us, either by email or phone at 08456711100 for a friendly no obligation discussion with one of our qualified advisors. This will give you a good idea of what is available and what to expect. If you require, our advisors will give you a free quote of the best deals available at that time.

How long does the process take?

Depending of a few circumstances, you will need around two months to complete the process without to much stress. It is possible to do much faster is you have all your ducks in a row.

Does the ongoing Credit Crunch affect the remortgage market?

Undoubtedly yes! Since the spring of 2008 banks have had a shortage of funds to lend to customers. This has increased the cost of borrowing for banks even though the Bank of England has lowered interest rates. This has meant that the majority of mortgage product has been removed from the market and the products remaining are not as favourable as it was at the beginning of 2008. As an example, in the past it was possible to find mortgages with a loan to value (LTV) of up to 125%. These have all been withdrawn and been replaced with LTV starting at 95%. Banks have also in general increased fees and cost associated with remortgaging in an attempt to increase their profits to store up their balance sheets and improve their capital adequacy requirements.

Does the ongoing Credit Crunch affect the remortgage market?

Undoubtedly yes! Since the spring of 2008 banks have had a shortage of funds to lend to customers. This has increased the cost of borrowing for banks even though the Bank of England has lowered interest rates. This has meant that the majority of mortgage product has been removed from the market and the products remaining are not as favourable as it was at the beginning of 2008. As an example, in the past it was possible to find mortgages with a loan to value (LTV) of up to 125%. These have all been withdrawn and been replaced with LTV starting at 95%. Banks have also in general increased fees and cost associated with remortgaging in an attempt to increase their profits to store up their balance sheets and improve their capital adequacy requirements.

Does the new mortgaging carry arrangement fees?

In most cases banks will have some kind of arrangement or product fee. Arrangement or product fees vary between lenders and products and will be discussed with you in detail by your advisor. The average product fee on a mortgage is now around �800, so be prepared to factor this into your budget. Some lenders are so keen to secure your business that they will offer special products that have no fees and they will pay the legal and valuation cost to secure the business. It is however very important to not get caught by low or no fees but to ensure that the total cost of the mortgage is acceptable considering these discounts. Your advisor will be able to assist in this regard.

What are the factors that I need to consider during the remortgage process?