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Providing expert mortgage advice for over 27 years.
Providing expert mortgage advice for over 27 years.
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If so, then remortgaging with Newhomes could be the smartest move you can make.
Remortgaging is when you replace your current mortgage with a new one. This could be with the same lender or a different one.
Remortgaging usually happens when you’ve come to the end of your mortgage deal, but there can be other good reasons to switch. Remortgaging can be a great option if you have paid off more of your mortgage, you need to release equity, you want to consolidate debts, or your property has increased in value, or you are concerned about interest rates rising. It can help you save money and give you peace of mind.
You can save money by remortgaging if you have paid off more of your mortgage, your loan-to-value ratio (LTV) will be lower. This means that you will be able to get a lower interest rate on your mortgage, which could save you money on your monthly payments.
The main advantage of using a mortgage to consolidate debt is that mortgage interest rates are typically lower than rates for other types of debt, such as credit cards. By consolidating high-interest debt into a lower-interest mortgage, you may be able to save money on interest charges and reduce your monthly payments. Another advantage is it can simplify your finances, reduce your monthly payments, and improve your credit score.
Remortgaging can be a useful way of releasing some of the cash you've built up in your property through equity, to fund home improvements or buy a large purchase
You could change from a fixed-rate to a variable-rate mortgage, or vice versa, depending on your preferences and circumstances. You could also choose a more flexible product that allows you to make overpayments or offset your savings.
Remortgaging is a great time to consider switching lenders to get a more suitable deal. You could move to a different lender that offers better service, more features, or more flexibility. You could also take advantage of exclusive deals that are only available to new customers.
Remortgaging allows you to explore different mortgage terms and options. This flexibility can provide you with greater control over your monthly payments.
Remortgaging on a Help to Buy property follows a similar process to remortgaging a standard property, but there are some additional steps to take.
Don’t worry we do all the hard work for you and guide you through the whole process, making your journey simple and stress free.
If interest rates improve before your mortgage is complete, we will switch you to a lower rate.
Simply call your dedicated mortgage adviser to arrange for a Mortgage Rate Check.
Our expert advisors have deep expertise in the remortgage process and can help you make well-informed decisions about your remortgage options.
Our advisors will work with you to understand your unique financial goals and create a personalised strategy to help you achieve them.
We work with 72 trusted lenders, and will help you find the most competitive rates for your remortgage. We have access to exclusive rates you cannot get by going direct to your lender or high street bank.
When you remortgage with Newhomes, you can be confident that you're making the best decision for your financial future.
Start your remortgaging journey today
Our friendly and experienced advisors will be happy to help you find the most suitable remortgaging deal for your needs.
Yes, you may be able to save money on your mortgage by remortgaging. If you can get a lower interest rate on a new mortgage, you will pay less interest each month, which can save you hundreds or even thousands of pounds over the lifetime of your mortgage. If you also have more equity in your home, this may enable you to get a lower rate.
The amount of money you could save by remortgaging will depend on a number of factors, including your current interest rate, the new interest rate you can get, and the fees associated with remortgaging. However, it is possible to save thousands of pounds by remortgaging.
There can be several fees when remortgaging. Your advisor will explain any additional costs and help you decide the best option for your circumstances.
An example of remortgaging fees are
Exit fees
If you switch deals during the initial fixed or tracker period, then you will likely have to pay an early repayment charge (ERC). The ERC is calculated as a percentage of the outstanding debt.
Your annual mortgage statement will set out what ERC would be payable.
Arrangement fees
Mortgages come with a product or arrangement fees. These can be added to the mortgage balance, though remember that doing so means you will pay interest on it, so it could cost you more than paying it upfront.
Legal fees
Unless you are doing a product transfer, there may be legal fees to cover things like valuing the property and conveyancing.
These fees will be much lower than for someone who is moving to a new property as there is less legal work involved.
The remortgage process can take anywhere from a few weeks to a few months. The exact length of time will depend on several factors, such as the complexity of your application and the workload of the lender you are remortgaging with.
It's a good idea to speak to us six months before your rate is due to expire. We can lock in rates up to six months in advance with certain lenders. We also offer a mortgage rate check service, to provide you with the confidence that you will get the lowest rate if they change.
An Agreement in Principle (AIP) or Decision in Principle (DIP) is a document from a lender that states that they are in principle willing to lend you a certain amount of money. This can give you peace of mind that you will be able to remortgage, and it can also help you to speed up the process.
You don't need an AIP to remortgage, but it is a good idea to get one. This is because it will give you an idea of how much you can borrow and what interest rate you can expect to get. It can also help you to compare different lenders and find the most suitable deal.
Your lender will assess the value of your property before approving your remortgage application. This is done either by a drive-by valuation, where a surveyor will drive past your property and assess its condition from the outside, or by an automated valuation model (AVM), which uses data from recent property sales in your area to estimate the value of your home.
The valuation of your property and the amount of mortgage debt you already have will be used to determine the amount of money you can borrow and the interest rate you will be offered.
If you remortgage with your current lender, it is considered a product transfer. This means that you are simply switching to a new mortgage deal with the same lender. Product transfers typically do not require any additional legal work.
If you remortgage with a new lender, it will be considered a new mortgage. This means that the new lender will need to carry out a full assessment of your finances and property, including a valuation. This will require you to use a solicitor or conveyancer to help with the legal work.
Yes, you may be able to get money out of your home when you remortgage. This is called remortgaging with cash release or to release equity. The amount of money you can release will depend on the value of your home and your outstanding mortgage balance.
Yes, you can change mortgage lenders when you remortgage. This is often a good idea if you can get a more suitable deal elsewhere.
If you're remortgaging with your existing lender, you'll be doing a 'product transfer', switching from one mortgage product to another. You can also change mortgage lenders when you remortgage. This is often a good idea if you can get a more suitable deal elsewhere.
Tracker mortgages have interest rates tied to the Bank of England's base rate. This means that your interest rate will move up and down in line with the base rate. Tracker mortgages can be a good option if you think the base rate will remain low or fall in the future.
Your other debts, such as credit cards, personal loans, and offset mortgages, can affect your remortgage. This is because lenders will look at your overall debt-to-income ratio when they decide whether to lend you money.
Mortgage debt consolidation may be the solution you need to simplify your finances and take control of your debt. At Newhomes we offer expert advice that can help you manage your debt more efficiently and help you achieve your financial goals.
Your credit score is very important when remortgaging. Lenders will look at your credit score to assess your risk as a borrower. If you have a good credit score, you will be more likely to get a good mortgage deal.
A fixed-rate mortgage has an interest rate that stays the same for a set period, usually two or five years. This can be a great option if you want to know what your monthly payments will be for the next few years.
An early repayment charge (ERC) is a fee you might face if you pay off your mortgage early. ERCs are usually charged as a percentage of the outstanding balance on your mortgage. The amount of the ERC will depend on the terms of your mortgage agreement. Each Lender will have different charges.
