Did you know you could save money every month by remortgaging? A remortgage is where you take out a new mortgage on a priority you already own. If you are currently paying a standard variable rate it may be worth considering remortgaging to bring down the rate of interest you’re currently paying.

Reasons for wanting to remortgage may include:

Coming to the end of a fixed mortgage period - you will automatically be moved onto a provider’s standard variable rate, which is usually more expensive than the amount you’re currently paying. It is not advised to consider remortgaging during your ERP (early repayment period) because you will incur an extra charge to get out of your existing mortgage, which would not necessarily be saved by remortgaging. If you are tied into an initial deal then you might have to pay an early repayment charge and there is usually a small exit fee to look out for.
Your current deal may be about to end or you want a better rate - mortgages only last a short time - often between two to five years as this is the typical period offered on a fixed-rate, tracker or discount mortgage.
Your home's value has gone up - If the value of the property has risen since you took out your mortgage, you may find you're in a lower loan-to-value band, and therefore eligible for much lower rates.
You want to overpay & your lender won't let you - You now want to pay extra but your current deal won't let you or it will only let you make a small overpayment.
You want to borrow more - Reasons to raise the borrowing amount are usually for home improvements and paying off other debts. Your current lender may say no to lending you extra money or the rates aren't good. Remortgaging to a new lender might enable you to raise money cheaply on low rates.

If you’re considering remortgage here are a few simple steps on what you will need ahead of time.

Find out the value of your current property
You can do this by visiting the land registry site or a real estate portal and have your property valued that way. On a site like Rightmove, for example, you can simply enter a postcode or street to see which properties have been sold and for what. You can also narrow the search by property type.
Apply for a decision in principle
This is where banks and mortgage providers consider how much they can lend to you, which won’t affect your credit rating. A Decision in Principle will give you an indication of the amount you may be able to borrow based on what you tell your provider and their security checks, including a soft credit check. Information that is usually needed for this includes your home address, income, outgoings and current credit cards or loan payments.
Application
After receiving your Decision in Principle we advise that you seek mortgage advice to help you decide which mortgage you wish to apply for. Once you have made your decision, applications can be made online, over the phone or in a branch, where you will be asked to fill out a series of documents. You can apply 3-6months before your existing mortgage is due to end.

Mortgage advice is not given during this process, so if you are looking for advice on your decision or for more information, do get in touch with a member of our team today.