How does remortgaging work?
Is your fixed-term mortgage product coming to an end? Are you wondering how to remortgage or how much it costs to remortgage? Explore your options with The Cumberland today!
With local branches and real support, we assess every mortgage individually. Our commitment to kinder banking earned us national recognition at the 2023 Moneyfacts Awards.
How Does Remortgaging Work?
Remortgaging means switching your mortgage to a new lender while staying in your home. Our guide can help you decide if it’s the right move for you.
Is it Time for Me to Remortgage?
Remortgaging can offer a range of benefits, depending on your financial situation and future plans. Here are some key reasons why it might be the right move for you:
- Your Mortgage Deal is Ending - When your current fixed-term mortgage product ends, you'll typically move onto your lender’s standard variable rate (SVR), which in some cases can be higher. Remortgaging could secure a lower interest rate and save you money.
- You Want to Borrow More - Need extra funds for home improvements or a big purchase? You may be able to release equity from your home when you remortgage.
- Lower Interest Rates & Better Terms - If your property has increased in value, your lower loan-to-value (LTV) ratio might help you access more competitive mortgage deals.
- More Flexible Repayment Options - Want to make mortgage overpayments without penalties? Switching lenders could help you find a more flexible deal.
- Life Changes - Whether you’re starting a family, changing jobs, or facing a shift in income, remortgaging allows you to find a mortgage that better suits your current and future needs.
How The Remortgage Process Works
Thinking about how to remortgage your home? It’s important to consider your wider financial situation and understand the key steps involved.
Here’s what to expect when remortgaging with The Cumberland.
1. Understand the Costs
To be sure that remortgaging is right for you, consider any potential fees, such as:
- Arrangement Fee - Sometimes called a product or booking fee, this covers setting up your new mortgage.
- Valuation Fee - To confirm the value of your property, although some lenders may offer this for free.
- Legal Fees - A solicitor or conveyancer will be required to manage the transfer of your mortgage.
- Exit or Early Repayment Fees - If you plan to remortgage again in the future, check whether your current lender charges an early repayment fee.
At The Cumberland, we’ll be upfront about any costs and help you weigh up whether remortgaging is right for you.
2. Apply for Your New Mortgage
To proceed with your remortgage application, you’ll need to provide:
- Personal and financial details - Including proof of income
- Information about your current mortgage
- Details of any loans or credit commitments
We have a team of manual underwriters at The Cumberland. Your mortgage application will be reviewed by a real person who will consider all the relevant details. Occasionally this allows us to accept an application that may have been rejected elsewhere.
3. Completing Your Remortgage
The final steps are like buying a new home. Your new lender will conduct a credit check and arrange a property valuation. You’ll also need a solicitor or conveyancer to handle the legal side of switching your mortgage. It is worth noting that there are some lenders offer this as a free service.
Remortgaging with The Cumberland
Ready to remortgage? The Cumberland team is here to help you understand how long a remortgage takes, how much it costs to remortgage, and whether it’s the right move for you.
Want to see how much you could borrow or what your monthly repayments might be? Try our easy-to-use mortgage calculator and start planning today!
You can book an appointment with a mortgage adviser, and for general enquiries, visit your local branch or call our customer service team on 01228 403141 - we’re always happy to help!