When you buy a home, you will usually have to take out a mortgage to pay for it over a set number of years, typically 25. Remortgaging is when you replace your existing mortgage with a new one, usually by switching it to a different bank or building society. It’s important to remortgage when your current mortgage rate is due to end, as if you don’t, you’ll revert to the bank’s standard variable rate (usually higher).
Most people remortgage to lower the cost of their monthly repayments, particularly when they come to the end of an introductory short-term deal. There are other reasons you might want to remortgage, however: perhaps you want money for home improvements, or to consolidate your debts, or to release equity in your property to pay for a holiday – this is called a further advance.
Your property’s value is based on the sale price reached by properties in your area and of similar construction, type, age and size – it’s only a guide. Most mortgage lenders use an Automated Value Model (AVM) to establish a quick valuation without even visiting your property when considering whether to lend you money.
Ultimately, your house is worth whatever someone is willing to pay – and online calculators don’t take in the level or quality of interior design, which often adds value.
You’ll be able to see how the value has changed over time, which is data provided by Landmark. A more accurate valuation will be at basic valuation stages, where your lender will send someone out to provide a basic survey and value of the property.
The cost for remortgaging varies, as it depends on a number of factors. That’s why it’s important to look at the total cost of moving mortgages, not just the great rate. Unless you’re staying with your existing lender, your new mortgage will have fees.
You might have to pay a charge for repaying your mortgage early to switch deal (if you leave before the contract term of the mortgage product). For more information, you can read our guide on how much it costs to remortgage.
If you’re not sure which mortgage is right for you, how much you can afford, or whether you meet the lender's requirements, speak to one of our qualified mortgage specialists. They’ll advise you and help guide you through the application process. Just call 03300 583 859.
Mortgage Questions? Click here for a free call back in under 5 minutes