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Listed below are the most frequently asked questions regarding remortgages and mortgages we get from our visitors. We do our best to answer them no matter how complex or trivial.
Q: What is a remortgage and how does it work?
A: A remortgage is simply the process of replacing your existing mortgage with a newer and hopefully cheaper one. The remortgage process works for you by saving you money on your existing mortgage payments. This might be due to a decrease in interest rates or an increase in your property value. This leads to something called positive equity, whereby your house has increased in value since the time of purchase (valuation of your first mortgage).
Q: I've had my mortgage for over ten years now. Is now a good time to remortgage?
A: Although time is a factor when wanting to remortgage, it isn't a reason. The main questions you should be asking yourself should be, "Will I save money by remortgaging?" and "Could I generate any extra income through remortgaging?". If the answer to both of these questions is 'Yes' then a remortgage is something you seriously need to consider.
Q: With so many places online and on the high street, all offering similar remortgage prices and products, how do I figure out which one to choose?
A: Soon Remortgages.com will provide you with a highly recommended section. Our researchers will do all the hard work for you and pick out the best deals available from the internet. If you would like to find out how much money you could save why not try our mortgage calculator situated in the bottom left hand side of this site. Or simply visit Mortgage UK and apply online.
Q: What is the benefit of a cashout remortgage compared to a regular loan?
A: If you needed a little extra cash for the purpose of home improvement, a holiday, or a new car then a cashout remortgage could be the choice for you. A cashout remortgage is simply the process of remortgaging your home for more than the remaining value of your current mortgage. This leaves you with a little bit of extra cash to spend on home improvement, holiday or car. The benefit is simply the fact that you don't have to take out a seperate loan. All repayments are included within the remortgage. You might find that it may work out cheaper than applying for a seperate loan.
Q: Should I tell the lender what the money is really for?
A: You need to makle sure you tell the truth when applying for a remortgage. If you're planning to make some home improvements with the remortgage, then tell the lender that you plan to make home inprovements. Home improvements will increase the value of your home in the future and may better you chances of a better deal with the lender.
Q: When is the best time to remortgage?
A: The best time to remortgage is when it makes good financial sense. There is no point remortgaging if you're not going to save any money. Remember to watch the interests and the economy to see if there is going to be a predicted rise or fall in rates. Keep checking our news articles for the latest information on remortgaging.
Q: Why should I remortgage?
A: The main reason anyone should remortgage is to save money. With mortgage payments being one of the highest monthly outgoings, many of us have still yet to realise that remortgaging can save you a huge amount of money. Especially since the price of property is currently on the rise. If your house is worth more now than at the time of your mortgage valuation then a lot of money could be released for you to spend on home improvement, a family holiday or a new car!
Q: I've decided to remortgage. Why happens next?
A: If you haven’t already done so, you will need to calculate how much your current mortgage is costing you per month and calculate how much is would cost to remortgage.
Find a remortgage that’s suited to you and your needs. See our top ten remortgages page to find the latest deals.
More calculations. Find out how much the remortgage will cost you pee month. Find out how much the remortgaging fees will be and fill out all the necessary application forms but don’t sign anything until you’re 100% sure about everything.
Inform your existing lender that you are planning to switch. They may offer you a better deal on your existing mortgage to keep your custom.
Get in touch with your new lender and complete the rest of the forms. The lender will carry out the regular checks and the final signatures will take place.
Q: Why can't I get a mortgage?!
A: It's a broad question, but we do get asked it a lot. There are a number of factors which can and will affect your application for a mortgage. These factors could be anything from your personal financial status, to the lenders own policy on lending, which they don't always have to say whay they are. In which case the answer to your question may not ever be known. If you take some time to look through the rest of our site you'll find out what you need in order to have a successful application for a mortgage.
Q: For what purpose can I remortgage?
A: Any legal purpose for example:
Home Improvement
Capital Raising
Second home or Holiday Home
Car Purchase
Paying off of arrears
Paying off CCJ's
Avoiding Bankruptcy/ IVA
Avoiding repossession
Business Venture
Equity Transfer
or any combination of the above.
Q: What is the average timescale for a remortgage to be arranged?
A: This all depends on your circumstances and the purpose of the mortgage.
Capital Raising - 14 days
Debt Consolidation - 21 days
Avoiding repossession 7 days
Q:
Do I need to have insurance to get a mortgage ?
A:
The only insurance your required to posess is house buildings insurance. Other insurances that are associated with a mortgage are there for your protection.
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