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A remortgage (also known as
refinancing) is the process of paying off
one mortgage with the proceeds from a new
mortgage using the same property as
security. Often the purpose of switching is
to secure a more favourable interest rate
from a different lender or to release equity
from the property. For more help on
Remortgage frequently asked
questions click here.
The process of remortgaging does not usually
involve moving home or taking out a second
mortgage on the property; it is in effect
the transfer of a mortgage from one lender
to another. Homeowners may choose to
remortgage for various reasons, including to
reduce the size of repayments, to pay off a
mortgage earlier, to raise capital, or to
consolidate other debts.
Homeowners often mis-use the expression
remortgage when they are simply switching
from one product to another with the same
lender; this is not a remortgage which
involves the removal of one legal charge
over a property and its substitution with
another in favour of a new lender.
If you want to
find out more about
your current credit
status click here or using are "Credit
Status" icon above
To get a quote from our specialist
Remortgage partners please complete our simple
online "Mortgage
Finance
Solutions Enquiry" forms which
asks for some very basic information to help
them assess your needs. If you would would like alternative
mortgage providers then click here to
open a new window to our "
remortgage partners" or visit our complete
list of "finance
partners" Remortgage
Frequently Asked Questions
- I have seen many finance terms that
I don't understand, can you help?
We suggest you visit our
glossary of
terms for more help.
- Are there any penalties for early
repayment?
This will depend on the lender and the
mortgage you choose. A personalised
illustration will give you details of
any early repayment charge.
- Can you reduce my monthly
outgoings?
If you are looking to remortgage it is
very possible that we may be able to
reduce your monthly mortgage payment or
your overall monthly outgoings if you
release some equity for debt
consolidation. This is dependent on many
factors however, so the easiest way to
find out if we are able to save you
money is to
enquire online.
- Are there any restrictions on
what the remortgage can be used for?
No, you can use the money from your
remortgage for virtually any purpose.
The choice is yours. The majority of our
customers clear some or all of their
existing credit so as to reduce their
monthly outgoings to just one, more
manageable monthly payment.
- How much will my remortgage cost?
That depends on how much you wish to
borrow, and the time period that you
choose to repay it over.
- What interest rate will I be
charged for my remortgage?
It is difficult to say what interest
rate your remortgage will attract, as
all remortgages are assessed on personal
circumstances.
- How much can I borrow?
The minimum mortgage advance is £10,000.
The maximum loan you could apply for
depends on several factors which
include: the value of your house, your
income and your credit history.
- I've had financial problems in
the past. Can you still help?
We should be able to help even if you've
had problems keeping up payments in the
past. We can arrange remortgages even if
you have poor credit rating, have
arrears or a county court judgement (CCJ)
against you. In certain cases, but not
always, an alternative interest rate may
be offered. But it costs nothing to find
out what we can offer you.
- I'm worried about missing
payments due to becoming ill or
redundant?
Insurance protection may be available on
some plans to offer peace of mind to
borrowers. Subject to status
- Can I borrow again in the future?
Of course. As long as you've maintained
your regular payments, you could borrow
more – even if you haven't completed
your original remortgage.
- I'm self-employed. Am I still
eligible?
Most certainly. Generally, we'd like to
see two years' accounts, but even
without trading accounts we can often
arrange remortgages.
- What is the difference between an
interest-only and repayment mortgage?
With an interest only mortgage you only
pay the interest charge each month. With
a repayment mortgage the payments you
make are calculated to include paying
off the loan by the end of the term.
- Will you contact my employer?
We will only contact your employer with
your written consent. We can usually
avoid the need to contact your employer
if you provide us with your last 3
months' wage slips. If you are self
employed and can't prove you income we
can help you self certify.
- Will you contact my existing
lender?
We will only contact your existing
lender with your written consent. We can
avoid doing so if you have an up-to-date
statement of your account that includes
a full settlement figure.
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