A Quick Guide on the Remortgaging Process in The UK

Breaking down the remortgage process

• Your current lender will write to you in advance of your current mortgage deal coming to an end, for example if you’re on a 2 year or 5 year fixed rate mortgage.
• They’ll write to you so that you’ll be aware that you’re about to revert to the SVR (Standard Variable Rate). Assuming the SVR is higher than your current rate of interest (which is usually the case), this is the time to investigate whether you can save money with a remortgage.
• You should receive a redemption statement once you’ve requested it from your lender. This essentially tells you the amount you need to pay off on the remainder of your mortgage loan (including fees). This is the amount you’d need to borrow if you decided to go through a remortgaging process. 
• In order to make sure you find the best deal when going through a remortgage, choose to go through a mortgage broker. As they will be able to search the whole of the market to find the best deal for your specific circumstances.
• Next you need to decide which type of mortgage you want. Whether it’s a repayment or interest-only mortgage. A mortgage broker will be able to help with this decision.
• If you’ve decided to move to a new lender, then you’ll need to appoint a solicitor or conveyancer. This is so that they can sort out any paperwork needed in the process for you - for example, drawing up and signing the mortgage deed and transferring the title of the property.

Have your documents ready

• 3 months worth of bank statements, payslips or both (if self-employed your last 3 years accounts).
• Utility bills & credit card statements.
• Your address details (going back 3 years).
• ID such as driving license or passport.
• Records of regular outgoings such as subscriptions, along with proof of any bonuses or commission.
• Your P60.

Once you have documents sorted

• After you’re happy with your documents, the mortgage provider will give you a mortgage in principle (MIP), a written indication of how much they might be prepared to lend. 
• Keep in mind the MIP isn’t binding, but it’s a useful indicator of what you may be able to borrow. And estate agents will take these seriously if you’re remortgaging to buy a new home.
• The lender will then arrange for a valuation, which is sometimes included, however you may need to cover the cost. All this does is simply confirm whether the house is worth the amount you’re asking to borrow.

Time for the mortgage application

• Your job.
• The industry you work in.
• Your income, spending, & credit history.
• Deposit size and any other financial commitments.
• The more information you can provide that you are a reliable repayer of credit, the greater the chances that your application will be approved.
• If the lender approves the application, they will send you and your solicitor a mortgage offer letter. 
• The offer letter usually lasts 6 months and outlines the amount you can borrow based on the credit checks, income verification and property valuation, along with any other conditions.
• It’s important to thoroughly check over the offer, to make sure all of the details are correct. If you notice anything wrong, inform your lender. And do the same if your circumstances have changed in the meantime.
• After this, the solicitor will request the money from the new lender and use it to pay off the old mortgage.
• Your solicitor will then register your details with the Land Registry. If applicable, the title deeds will also be transferred to the new lender.

Don’t delay in making a decision