Want a better deal on your mortgage?

Receive exclusive mortgage rates straight to your inbox

Call us: 0345 305 2540
Need help? 0345 305 2540
Remortgage Calculator Calculator

7 Most Common Remortgaging FAQs

REMORTGAGING | 05.06.2017

Whether you’re hoping to improve your finances or free up cash for a large expense such as a holiday or home renovation, remortgaging your property could be a great way of saving money and accessing capital. But with so much to think about during the remortgaging process, people often have a number of questions regarding everything from their eligibility to remortgage to the process itself. Here are 7 of the most common remortgaging questions we get asked:

 

Why should I remortgage?

For most people, their mortgage is their single biggest expense. With mortgages having the potential to cost thousands of pounds in interest over the course of the deal, it’s easy to see how money can be saved by switching to a better offer. Remortgaging tends to involve shifting your mortgage from one lender to another. However, some people choose to remortgage with the same lender and simply shift to a more financially suitable product. You may decide to remortgage your property due to a change in circumstances. For example, if you’ve had a pay rise or you’ve inherited a large sum of money, you may wish to overpay on a regular basis or pay off part of your mortgage as a lump sum. Alternatively, you may wish for a more flexible mortgage that allows you to take payment holidays. Some people choose to remortgage their property so they can lend more money. If you decide to remortgage for this reason, you could free up equity to be used on other large purchases such as holidays or home renovations.

How much money could I save by remortgaging?

Before making the decision to remortgage, it’s important to determine whether it will leave you better off financially. For example, if you were to remortgage your home to free up cash to spend on a big life milestone, you could see yourself paying more money in interest over the course of your mortgage. Sometimes, the more affordable options in the short term could leave you worse off financially in the long term. This is because you'll end up paying more in interest the longer the term of your loan. 

How easy is it to remortgage?

Most of the remortgaging process is done for you by your current and new lender, but you'll need to do plenty of research beforehand to ensure you're improving your finances rather than hindering them. You may find that a mortgage broker can help you secure a great deal and guide you through the entire process.

Can I remortgage if I have a bad credit rating?

If you have a bad credit history, you may struggle to remortgage your property, even if you had a good credit rating when you initially bought your home. Whether you’ve missed payments on a loan or you’ve paid your mortgage late on a couple of occasions, lenders may be reluctant to offer you a new deal.

Can I remortgage if I’m self employed?

Thanks to fluctuating income and the uncertainty that's often associated with self employment, those who work for themselves can find it particularly challenging to remortgage their properties. If you're unable to prove your ability to make payments on your new mortgage, lenders may be reluctant to give you the mortgage deal you need. Considering you already have a mortgage and have proved your finances before, this may seem strange, but lenders' criteria is often tougher for remortgage deals than it is for ordinary mortgages.

Can I remortgage if I own less than 10% of the property?

If you own less than 10% of your property outright and you need to borrow more than 90% of your home’s current value, you may struggle to get a new mortgage deal. 95% mortgages are often available thanks to the government’s Help to Buy scheme, but the rates aren’t as rewarding as those available to those who have a larger initial stake in the property.

Will I have to pay any upfront costs to remortgage?

Before applying for a new mortgage deal, find out whether you’ll need to pay any early repayment charges. In some cases, early repayment fees can cost thousands of pounds and can determine whether or not remortgaging is worthwhile. 
Talk to us

If you're unsure and need some advice just give us a call, our expert team of advisers are available to help you choose the mortgage that is right for you.

0345 305 2540 info@taylormade-finance.co.uk

By clicking on the above link you will be leaving the regulated site of TaylorMade Finance Ltd. TaylorMade Finance Ltd is not responsible for the accuracy of the information contained within the linked site.

TaylorMade Finance Ltd is authorised and regulated by the Financial Conduct Authority (FCA Registration Number 669968). Company Registration Number 06742859

Complaints:

In the event that you wish to complain, you can contact us by email, telephone or letter.

Our address for this is:
Complaints Officer, TaylorMade Finance Ltd, 4 Church Road, Urmston, Manchester, M41 9BU. Our email address is info@taylormade-finance.co.uk and our telephone number is 0161 776 1089. We will then investigate the issues raised and inform you of our findings. Should you be unhappy with the resolution to your complaint you may contact the Financial Ombudsman Service, who can be contacted at the following address: Financial Ombudsman Service, Exchange Tower, London, E14 9SR.

Email: complaint.info@financial-ombudsman.org.uk
Phone: 0800 0234 567
https://www.financial-ombudsman.org.uk/

Your mortgage will be secured against your property.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Our fee for this service is 1.95% of the mortgage balance (minimum £1,295 to a maximum of £2,995 although reduced to maximum £1,995 without debt consolidation). Typically this will be £1,995.

Privacy Overview
taylormade

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.