Ready to Remortgage? Our Brokers Can Help

Usually, the minimum interval between securing your mortgage and going for a remortgage is six months. Both variable-rate and fixed-rate mortgages can carry an early repayment charge if you switch mortgages within a certain timeframe, which can range from 1% to 5% of your mortgage debt but can be higher.

For fixed-rate mortgages, if the agreement is that the mortgage rate is fixed for (for example) 2 years, then this is the minimum amount of time that must pass between getting your mortgage and then switching to avoid an exit fee. This is because by leaving before that amount of time, you’d be breaking the terms of the agreement.

For mortgages as a whole, usually, the first year of your mortgage will have the largest exit fee associated with it. After this first year, the exit fees will reduce to 0% as you complete the term agreed in your initial mortgage.

It’s possible to remortgage while on maternity leave. Your lender will consider your credit score, financial situation, and history in order to make a decision on this. If while on maternity leave you can evidence earning a steady income that exceeds the affordability requirements, in addition to the usual mortgage requirements, you can likely apply for a remortgage.

A lender is not likely to directly ask if you are on maternity leave, however, they are likely to ask you about your future plans. Honesty is the best policy here, as your financial situation will be likely to change by the end of maternity leave. A lender may ask to see payslips from before you went on maternity leave, bank statements, and/or a letter from your employer outlining what your return date will be, and what your salary will be upon your return. This is to inform lenders of your financial situation before maternity leave, during, and what it is likely to look like after you return.

A remortgage can, on average, take anything from 4 to 8 weeks from making your initial application. Oftentimes, you’ll have meetings with your lender’s mortgage advisors if you go to them directly. There are a few points to consider if you are looking to go down the remortgage route.

If you’re leaving your current mortgage before your current mortgage term, you could incur an early repayment charge or exit fee. It’s worth checking the terms of your mortgage and weighing this into your decision. You’ll also have to consider how your credit score is when you apply, and whether you will be able to exceed the affordability requirements for your new mortgage.

It would also be wise to consider what you want to achieve from your new mortgage. Are you looking for lower monthly repayments? Do you want to be able to pay off your outstanding balance sooner? Is what you want now going to be the same in the future?

Typically, the minimum amount of time that must pass before you can remortgage your home after taking out a mortgage is six months. Fixed-rate mortgages and some variable-rate mortgages carry an early repayment charge, which is often 1% to 5% of your mortgage debt but can be higher.

If your initial mortgage is, for example, a 1.5% fixed rate for two years, it means your interest rate is guaranteed for that term. By remortgaging before the expiry of this term, you’ll have switched to another mortgage before your initial fixed term is up, which could mean you will be liable for an early repayment charge.

Oftentimes, the first year of your mortgage will carry the largest early repayment charge, which will then decrease towards 0% as you complete the term agreed in your initial mortgage.

It’s entirely possible to use remortgaging to clear debt, however, the lender you choose must have absolute confidence in your ability to repay the additional money borrowed as part of the capital-raising process – meaning you must, at least, have enough equity to support the capital borrowed. Remortgaging is a commonly used method of reducing monthly outgoings, especially in the case of repaying credit and store cards. 

Employing the assistance of a mortgage broker experienced in the credit raising field could help find the best possible deals, and ensure your finances, application, and evidence are as strong as possible – convincing lenders of your ability to maintain payments.

As is the case with many mortgages available on the UK market, capital raising remortgage rates are at least slightly negatively impacted by bad credit – with interest rates typically being higher for those with bad credit than good. Depending on the extent of past credit issues, the amount of equity required to obtain a remortgage can increase significantly. 

Despite this, it’s not impossible to find a good capital raising remortgage deal when applying with bad credit. Employing the assistance of a mortgage broker experienced in the credit raising field could help find the best possible deals, and ensure your application is as strong as possible.

The vast majority of static homes including detached, semi-detached, terraced, and bungalow homes, alongside flats, apartments, maisonettes, shops, garages, surgeries, retail space, holiday homes, bars, pubs, and restaurants can be used in capital raising mortgages and remortgages. Of course, this list extends beyond what can be seen here. 

In contrast to this, mobile homes of any kind are generally exempt from capital raising mortgages, this includes mobile homes, caravans, canal boats, and barges. 

If you require further clarification on whether or not your property is a suitable fit for capital raising mortgages or remortgages, get in touch with a reputable mortgage broker, whose advisors will be able to offer informed, expert advice.

Capital raising mortgages are a fast way to secure funding for a huge range of purchases, bills and projects. These may include;

Home improvements, renovations, and upkeep, including extensions, heavy refurbishment, restoration, or redecorating. 

Large purchases such as university fees, holidays, weddings, and property deposits.

Business investments, including asset acquisition and expansion.

Debt consolidation, including CCJs, credit cards, defaults, legal bills, and tax. 

Divorce, commonly covering legal bills, paying off ex-partners, or buying out properties.

A good route for those who have paid off a significant portion of their existing mortgage or those who have come to the end of their current mortgage’s term, a capital raising remortgage is a secured loan that allows for the release of equity from an owned property. 

When remortgaging to switch rates, a property owner would typically borrow an amount equivalent to their outstanding loan, those looking to secure funds generally borrow a higher amount. Though the borrower’s mortgage is now larger, it is affordable, and additional funds previously tied up in a mortgage can be used for a wide variety of purposes, including large purchases, and debt consolidation.

Our experts have provided a rough guide as to how much it may cost to remortgage below – though your exact costs will be dictated by your individual situation and chosen providers, alongside the value of your property:

Mortgage arrangement fee: This can be paid upfront or added to your mortgage debt. This would then mean you’d pay interest on this fee. Cost £1,000-£2,000

Mortgage broker: no extra cost when you go with Fees Free Mortgages

Valuation and survey fees: Cost £250-£600

Legal costs: Cost £850-£1,500

The best time to remortgage isn’t when your mortgage term comes to an end. Instead, you should to start looking for a new mortgage deal at least three months before the expiry date of your current mortgage. However, if for any reason you feel you’d like to find a better mortgage deal for yourself earlier than three months prior to the end of the term, please get in touch and we can help you find the best solution.

The first thing to consider when planning to remortgage your home is affordability. Consider any additional fees you may need to pay such as an arrangement fee to your new lender or an early repayment fee for leaving your current lender. There may also be legal and valuation fees. After you’ve calculated your approximate budget, it’s time to reach out to a lender or mortgage broker to discuss your plans and options.

If you’re ready to take the next step towards remortgaging your home and sourcing a better deal for your needs, the Fees Free Mortgages team can help.  We’ll work to scour the entire mortgage market – bringing forth and applying for the best possible remortgaging deal on your behalf. 

Most people are able to remortgage their home and there are plenty of incentives to do so. Of course, as with every mortgage product, remortgage lenders will have individual sets of criteria that their clients must meet – and that are important to review as an applicant.

If you’re unsure as to whether remortgaging is the right option for you, or need help kickstarting your journey, Fees Free Mortgages can help. Our experts will explore the different options available to you on your behalf,  helping you sift through the numerous deals to find the right one for you.

No! Coronavirus will not stop you from remortgaging. Remortgaging deals are still being offered on the market despite the pandemic. In addition to this, advances in technology mean that we can conduct our initial discussion via telephone or over video call, and that we can email you our recommendations. The application process itself can be completed with online ID checks and digital documents – ensuring your safety throughout the process.

Fees Free Mortgages are proud to offer a comprehensive set of remortgaging services. For free, no-obligation mortgage advice, or to arrange a remortgage consultation, get in touch with us using the contact form above, or over the phone.