Remortgages Made Simple

At Loan.co.uk we offer remortgages that range from £10,000 to £100 million.

The right mortgage for your remortgage will depend largely on you, your circumstances and how you feel mortgage interest rates might move in the future. At Loan.co.uk we will be pleased to talk your options over with you.

Here’s a quick refresher for you:

Fixed. The mortgage is fixed at an agreed rate for a set period. Even if interest rates go up or down, your mortgage repayments will remain the same.

Tracker. This tracks the Bank of England base rate over a set period. For example, if it’s set at 2% above the base rate and the base rate was 0.75%, the rate to you would be 2.75%.

Tracker with cap rate. Exactly the same as a tracker, but the amount it could go up by is capped at a pre-agreed amount.

Variable rate. A variable rate mortgage can go up or down depending on the Bank of England’s base rate movements or by decisions made by the lender.

A remortgage pays off one mortgage with the proceeds from the new one. So, your new deal/lender effectively pays your old mortgage off early and replaces it with a new one.
Remortgaging doesn’t mean taking out a second mortgage. Nor does it mean moving house as this new mortgage is still secured against the same, existing property.

Remortgages have increased in popularity over recent years and continue to do so because they can help you to:

1. Reduce your current interest rate – for many the biggest incentive to change.
2. Raise cash by releasing equity in your home. Perhaps you’d like to do some home improvements, which may add more value to your home.
3. Borrow more over a longer period
4. Consolidate your debts into lower payments. Such as paying off credit cards.
5. Replace a deal that’s coming to an end. Introductory deals, such as discount mortgages often only last from two to five years. Once they expire, you’ll automatically be transferred to your lender’s variable rate which can be much higher. You may want to starting to look around for a better deal at least a couple of months before the deal’s about to end.
6. Gain more flexibility in your payments. This could be to reflect a change in your financial circumstances. There are flexible mortgage options that enable you to miss payments, overpay, pay extra or offset the mortgage against your savings.
7. Fix your payments so you’re protected against future interest rate rises
8. Maximise an increase in the value of your home. Whether due to your own renovations, a nearby high-performing school or a new, local supermarket, an increase in your home’s market value could mean you’re in a lower loan-to-value (LTV) band. LTV is the relationship between the size of the loan (in this instance, your mortgage) and the price of the property. So, the higher your LTV, the lower the interest rates you could be eligible for.
9. Move away from your current lender. Perhaps you’ve experienced poor customer service or prefer to use one that’s online.

Some of the reasons you might not remortgage include:

• The cost of fees and charges involved don’t outweigh the savings. Costs, like a large early repayment charge or exit penalties, are often applied to fixed, tracker or discount mortgages and could cancel out an improved interest rate. To avoid this be sure to check on all the charges and fees involved. This is especially important if you have a small mortgage or very little time left on it.
• Having little equity in your home. Most lenders will be concerned if you own less than 10% of your property and want to remortgage. Instead, we’d suggest that you consider a personal or homeowner loan.
• Extending your loan period. Because a longer-term means paying more.
• Your credit rating has dropped. If you’ve had credit problems since securing your mortgage, your lender will want proof that you can stay on top of the repayments. You may end up being offered a worse rate than you’re currently on.
• Your financial situation has deteriorated. Lenders need confidence that you can make the repayments and less money coming in could make things tougher.
• Your home’s value has dropped. If your property is now worth less than it was, then the amount of equity you own in it goes down. And, if your mortgage is greater than the property’s value you could be in negative equity (the loan is greater than the value of the asset its secured against).
• An existing good deal. As the saying goes, if it ain’t broke, don’t fix it. If you’re on a rate that you’re happy with, there can be little reason to switch. Though do be sure to keep an eye on it as things can change and there could be a better deal out there for you.

No, because your in effect, your ‘deposit’ is the equity you have in the property. You could add some money from your savings to help secure a smaller remortgage, but the good news is that it’s not usually necessary.

Just like your mortgage – so no need to worry about changes there. See ‘An overview on mortgages’ for more on payment methods and how interest is charged.

As with a mortgage, you’re looking at long time periods for your borrowing to help you to spread the cost. Our remortgage terms start at 3 years and extend all the way up to 40.

As many times as you want. There’s no limit on the amount of times you can remortgage or when. Some rates will charge if you leave earlier than you originally agreed, so please factor that into your planning.

We recommend an annual check of your mortgage to make sure you’re still happy with it. That doesn’t mean remortgaging every year, but it’s worth doing a little research to check that you’re still on the best deal for you.

There are lots of comparison sites out there and a fair few mortgage brokers to choose from, but Loan.co.uk is unique because we built a unique system that will always find you the lowest rate we have available.

Right from the start we will assign someone to expertly manage your remortgage case all the way through until you have your remortgage up and running. You will be given their direct phone number and their individual email address to make sure you can get hold of them quickly and easily in case you need urgent questions answering or require other help with your remortgage.

As a completely independent mortgage broker, we can find you the most competitive offers around. This could mean that you will save a meaningful amount of money each month to build-up your savings.

To save you time and money we will only show you the remortgage deals that are likely to be approved with your particular credit history and credit score.

To keep any stress to an absolute minimum, we will complete your application and put all the documents together so that your remortgage case runs smoothly. We will chase-up the lender and solicitors. We realise how frustrating it can be to wait for a remortgage to go through, so we will see what can be done to keep things moving.

Loan.co.uk will manage the remortgage process for you:

• We will submit your remortgage application
• Organise valuations if needed
• Instruct your solicitors if not using one provided by the lender
• Make sure your new mortgage is protected in case anything happens to you
• Provide regular updates on the process of the application and the solicitor’s progress