How to remortgage

If you’ve decided to remortgage and want to know more about the processes and fees involved, you’ve come to the right place! Fill in the form to get in touch, or if you still aren’t sure, find out if remortgaging is right for you by clicking below. 

Should I Remortgage?

How can I remortgage my home?

The idea of remortgaging your home can seem daunting, and if you can remember your initial mortgage process you probably don’t feel like you want to go through that again. However, remortgaging is not necessarily as complicated as you might expect.

If your circumstances have changed dramatically since you took out your initial mortgage or if you now have little or no equity, that can throw up some unwanted complications. But there’s nothing that’s not manageable.

Am I eligible to remortgage my home?

There are some essential criteria you must fulfill before you embark on your remortgaging. First you should find out your loan to value (LTV.) Then you should make sure that you can afford to remortgage based on your LTV. After that you should figure out what type of remortgage works for you – Mortgage Buddy can help you with that!

Establish your loan to value (LTV)

You need to work out your LTV:

  1. Take the amount you want to borrow (this is the size of your old mortgage plus anything else you want to borrow)
  2. Then find out how much your property is worth
  3. Divide the amount you want to borrow by the property’s value
  4. Then times that by 100 to get your LTV.

Make sure you can afford to remortgage

It’s not worth applying for a remortgage if you can’t actually afford to do it. You’ll waste time and applying might leave a mark on your credit file. While lenders’ affordability criteria vary, there is a ballpark amount that you could work out. If you work out your combined annual income minus outgoings, then times that by 4.5 that’ll give you a general idea of how much you can realistically afford to borrow.

How much does it cost to remortgage?

This varies from lender to lender, and many lenders require no fees at all. There are some standard fees that you should bear in mind though – you might have to pay:

  • Legal fees – usually around £300
  • Booking fees – between £100 and £500
  • Valuation fees – up to £1,500 depending on the value of your property
  • Arrangement fees – a fixed amount or a percentage of the mortgage
  • Early repayment fees – some lenders charge these if you switch before your term ends
  • Land registry fees – up to £910 depending on how much your property’s worth.

Some lenders will cover these costs as part of their remortgage package, so bear that in mind when you’re looking for your next deal. We can help you find the right remortgage for your situation – get a quote today.

remortgage3

For more information on how to remortgage and how much remortgaging costs, please don’t hesitate to get in touch or fill in the form below and we’ll get back to you with a quote and some help with starting your remortgaging process!