When your current mortgage deal ends, the decisions you make will impact your finances for years to come. Never has quality remortgage advice been more important, with homeowners saving thousands by making informed decisions about their mortgage arrangements. Whether you’re approaching the end of your existing mortgage deal or looking to take advantage of changing market conditions, understanding the remortgaging process will help you get better terms and avoid costly mistakes.
The Remortgage Process
Remortgaging involves switching from your current mortgage to a new mortgage deal, either with your existing lender or changing lenders altogether. When your current deal ends, your current lender will move you onto their expensive standard variable rate, which is usually their highest interest rate product. This can increase your monthly payments significantly, so proactive remortgaging is essential to protect your financial situation.
Mortgage experts always stress the importance of starting your remortgage review well before your current mortgage deal ends. Starting this remortgage process early gives you time to do affordability checks, verify income documents and navigate any complex circumstances that may arise during the mortgage application process.
The modern mortgage market has never been more competitive, with many lenders vying for homeowners with competitive rates and flexible terms. But with so many options, professional remortgage advice is more valuable than ever, as the right deal for your circumstances may not be obvious from the headline rates alone.
Timing Your Remortgage for Maximum Gain
Timing is everything when it comes to remortgaging. Most homeowners should start exploring their options 3–6 months before their current deal ends, so they have time to research the market, complete the application process and arrange the switch without pressure.
When your existing mortgage deal is coming to an end, your lender should give you advance notice and may offer you a new deal to keep you on board. While staying with the same lender can be easier, experts recommend comparing these retention offers with the wider market to make sure you’re getting the best remortgage deal available.
Market conditions play a significant role in when to remortgage. If rates are rising, getting a new fixed rate deal before your current deal ends will give you certainty and potentially save you money in the medium term. If rates are falling, you might be able to get temporary arrangements to get better rates as they become available. The remortgaging process takes 6–8 weeks to complete, involving property valuation, affordability checks and legal work. Knowing these timescales will help you plan and avoid the expensive standard variable rate that awaits those who don’t arrange alternative finance before their current deal ends.
Your Options: Same Lender or Different Lender
One of the key decisions in the remortgaging process is whether to stay with your current lender or switch to a different lender. Each option has its pros and cons that you should consider.
Staying with your existing lender, often called a product transfer, involves less paperwork and faster completion times. Your current mortgage provider already has your property details and payment history, so the process should be smoother. Many lenders offer competitive retention rates to existing customers, recognising the value of keeping existing relationships. By completing the remortgage process this way, you may be able to avoid moving to your lender’s standard variable rate.
But switching lenders often gets you better rates and better terms. The wider market usually offers better deals than your current provider, especially if your financial situation has improved since you first borrowed from your existing lender. New lenders may also offer additional features, such as flexible overpayment options or the ability to release equity for home improvements.
Mortgage advisers can do a full market review, comparing retention offers from your current lender with the best deals available from other providers. This should consider not just interest rates but also fees, early repayment terms and the overall cost over your mortgage term.
Remortgaging for Maximum Gain
Whether you choose to remortgage and why depends on your financial circumstances, factors like your credit history, and more. Remortgaging is more than just getting a better rate on your existing property debt. Many homeowners use the remortgaging process to access extra funds for various purposes, from essential home improvements to debt consolidation or investment opportunities.
Releasing equity through remortgaging can get you extra money at mortgage rates, which are usually better than personal loans or credit commitments. This is particularly useful for big home improvements that increase property value, effectively using the property itself to fund enhancements that benefit long-term equity growth.
Debt consolidation is another common remortgaging goal, allowing you to pay off expensive credit commitments and replace them with lower-cost mortgage borrowing. But this requires careful consideration and advice from mortgage advisers, as securing previously unsecured debts against your property increases the consequences of payment difficulties. Some homeowners remortgage to change their mortgage structure, perhaps from interest-only to repayment or vice versa, depending on their changing financial situation. Others use remortgaging to remove or add names to the mortgage, for life changes such as marriage, divorce or family inheritance situations.
Costs and Charges
Understanding the full cost picture is key when considering remortgage options. While getting a lower rate is the main goal for most homeowners, various fees charged can impact the overall value of any new remortgage deal.
Early repayment charges from your existing lender are the biggest cost when switching deals before your current term ends. These early repayment charges can be substantial and should be weighed against the long-term savings from getting a better rate. Expert advisers can calculate whether the new terms justify any early repayment penalties.
New mortgage deals involve various fees, including arrangement fees, valuation costs and legal expenses. Some lenders offer fee-free products or include costs in the loan amount, while others require upfront payment. Comparing the total cost of each option rather than just the interest rate will help you find the most suitable deal for your situation.
When remortgaging, solicitor fees and mortgage broker charges should be factored into your calculations. But the savings from getting the best terms often far outweigh these costs, especially for homeowners with large outstanding loan balances.
Why Professional Guidance Matters
The complexity of the mortgage market makes professional mortgage advice from qualified mortgage advisers more important than ever. Expert mortgage advisers have current knowledge of lender criteria, product features and market trends that can impact your mortgage options.
Professional brokers can access specialist products not available through direct applications, getting you better terms or accommodating complex financial situations that would challenge standard mortgage applications. They have relationships with multiple lenders, so the application process is smoother and faster.
Affordability checks are more detailed than ever, and lenders consider spending patterns, existing debts and future financial commitments in depth. Professional advisers understand these requirements and can present your application in the best possible light to maximise your chances of getting approval for the best terms.
For homeowners with complex circumstances, such as self-employment income, existing credit issues or unusual property types, specialist adviser knowledge is particularly valuable. They can find lenders that will offer competitive terms despite these complications.
Remortgaging Made Easy
Remortgaging requires careful consideration of your current situation, future plans, and market opportunities. Regular mortgage reviews mean you stay on the best terms throughout your homeownership journey, with monthly repayments you can afford, rather than just accepting whatever new deal your lender offers when your current deal ends.
The mortgage market is constantly changing with new products and competitive pressures creating opportunities for the savvy homeowner. Those who actively manage their mortgage arrangements and seek remortgage advice when needed generally achieve better long-term financial outcomes than those who are passive.
At Eden Hawk Financial Solutions, our expert mortgage advisers specialise in providing bespoke remortgage advice for your individual circumstances. We understand the complexity of the modern mortgage market and work hard to get the best mortgage deal for you. Our experienced team will guide you through every stage of the remortgaging process, from initial market review to completion, to get the best outcome for your financial future.
Get in touch today to see how remortgage advice can help you save money and optimise your mortgage for the future.
