Are you approaching the end of your fixed period and want to get a better deal? Has your financial situation changed? Do you want to raise additional funds for home improvements? Are you currently sat on the Standard Variable Rate? Or perhaps you want to pay more or less on your monthly repayments? These are all reasons for wanting to remortgage your property.
Remortgaging is a much less involved process than buying a home, so it is often easier than you think. A good place to start is to have a think about what it is that you want to achieve by remortgaging. For example, if your initial deal has ended or about to end, then remortgaging can help you to secure the best new deal and help to save you money. You do need to remember though, that other costs need to be considered, such as set up fees (an arrangement fee, valuation fee or legal fees) However, you can often get lenders who offer deals with low or even no up-front costs.
Here are some steps that will help you make the remortgaging process as straightforward as possible and help prepare you:
- Check your current mortgage – Have a look at what your current balance is on your existing mortgage and check what the term is on it. You’ll need to see if there is an early repayment charge if you were to switch deals. Either check your account online or ask for a redemption statement which will give you your current balance and situation.
- Get a property valuation – It is important to understand what your property is worth so that you can calculate exactly how much you will save by remortgaging. The valuation will need to be realistic as the mortgage lender will send out an independent valuer which will confirm the valuation before you can proceed with your application. They may also do a desktop or automated valuation.
- Check your credit history reports – This will have been part of your initial mortgage application, but you will also need to check they are correct now to make sure you are in a positive situation. Have a look here at my article on improving your credit score.
- Make detailed notes of your incomings and outgoing and debts – Make sure you have the detail of your income which should also include your basic salary plus any bonuses split out. If you are self-employed, have at least two years of tax returns to refer to. Then write down any financial commitments you have such as loan payments, credit card balances, childcare, and other bills. This will help the lender work out an accurate affordability calculation based on your incoming and outgoings. Again, this needs to be an accurate reflection, you want to make sure that you can actually afford what you say you can!
- Get your paperwork ready! – There are some standard documents that your new lender will want to see, so it pays to have these ready in advance so that you are well prepared. These may include:
• Your last three months’ bank statements
• Your last three months’ pay slips
• If self-employed: your last three years’ accounts/tax returns along with the corresponding tax overview forms
• Proof of any bonuses/commission if this is applicable to you
• Your latest P60
• ID documents (usually a passport or driving licence)
• Proof of address (e.g. utility bills or credit card bills dated within the last 3 months)
At KB Mortgage Services, we are well-equipped to help. We have access to the whole of the market, meaning that we can evaluate which lender and type of mortgage is best suited to your situation, to save you money.
But we’ll even advise you when remortgaging isn’t the best option for you. If you want to reduce your monthly payments, for example, we’ll figure out if the penalty fees associated with switching your lender early will be outweighed by the savings in the long run. If they will be, we’ll tell you so!
But if you do decide to go ahead, we’ll complete the paperwork, guide you through the process and keep you updated. And we’ll even keep in touch with you after you’ve completed, to ensure that the mortgage and protection plans you have in place always meet your changing needs.
So, if your mortgage is no longer suiting your lifestyle, or you want to see if you could save some money then get in touch.
Please note: You may have to pay an early repayment charge to your existing lender if you remortgage. Your home may be repossessed if you do not keep up repayments on your mortgage.
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