What is re-mortgaging?
By changing their mortgage product a lot of borrowers stand a good chance of saving money through remortgaging and switching to get a better deal.
The Lifetime philosophy is designed to help our customers manage their debt and your mortgage is the biggest debt that you are likely to take on.
We believe in responsible financial planning. We emphasise where possible to reduce your debt and pay off your mortgage as early as possible, whilst listening to your needs as your circumstances change.
With access to the whole of the mortgage market we have gained extensive knowledge of the lenders and their products. Mortgage products change and deals are launched and withdrawn on a daily basis so sourcing the right product can be a challenge.
Overtime we have built up strong relationships with all the lenders and are in constant contact with them. Rest assured though, we work with for YOU not the lender!
When you place your mortgage through Lifetime we will automatically contact you three months before the deal ends. We will listen to what you want and will research the market to find the right product that meets with your criteria.
If you are not out of your fixed term yet and will be looking to re-mortgage soon why not fill in our re-mortgage reminder and we will contact you nearer the time, or call 0800 279 8000 to speak to an adviser.
Why re-mortgage? |
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These are just some of reasons why people choose to remortgage.
- Savings on the mortgage by switching the Mortgage product and rate change
- Reduce the term of the mortgage
- Releasing equity
- Home Improvements
- Expanding family
- Family Planning - Childs education
- Debit Consolidation
- Marital Split
Consumers are becoming a lot sassier about shopping around for the right service providers. Look at how easy it is to switch utilities to find a more competitive and cost effective energy provider. The same can be said of Car Insurance, Telecom, Mobiles and Internet providers.
Using the Internet has made research easier. It gives you the knowledge as to how you can save money and increase the benefits you receive. Why then should your mortgage be any different?
Can I save money by remortgaging?
A lot of consumers are tied into a mortgage where they benefit from a fixed rate for the first two years of the mortgage term before going on the lenders standard variable rate (SVR). This is usually 2% higher than the best deals available.
To illustrate this point consider the following: |
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Mortgage loan of £150,000
Fixed Period of 26 months
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| Fixed Interest rate at 5.14% |
Monthly payment £895.09 |
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| Standard variable rate at 7.25% |
Monthly payment £1078.07 |
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A monthly saving of £182.98 per month
A saving of £2195.76 over 12 months
This illustration is based on a Repayment Mortgage.
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The overall cost for comparison is 7.1% APR
Many people opt for a two-year period for their mortgage deal. This illustration would save you just over £4757 in that period.
Three months before the deal ends we will review your finances and depending on your brief we will search the market that will meet with your demands. We won’t just go for the cheapest deal over 25 years we will also look at reducing the term. It is our objective to help you reduce your debit so that you can start to realise your aspirations.
How easy is it to remortgage?
Its is a lot simpler than you might think! This is because the deeds to the property are already registered in your name. If you are staying with the same lender and just switching product it is even easier.
However should you be advised to change lender then Lifetime will liaise with the lender, the solicitor and the conveyancer on your behalf. Rest assured it isn’t a long drawn out process with lots of paperwork.
- Firstly speak with your existing lender to see what deal they are prepared to offer.
- Next speak with an Independent Mortgage Broker (whole of market) so that they can source the right product and come back to you with the appropriate deal. Lifetime are well placed to offer you independent unbiased advise on the whole of the market so Call 0800 279 8000 and ask to speak with an adviser.
> Complete our re-mortgage enquiry form
> Work how how much you could save!
- The lender will require a valuation to ensure the value of your property is sufficient against the loan amount required. Prices can fluctuate over a short space of time.
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- You will be required to make an application to the lender in the same way as when purchasing you first took out the mortgage. Your mortgage adviser will submit your application. Once it has been received you will need to sign and send the declaration back to the lender.
- The application will then need to be underwritten by the lender. They will want to see that the loan to date has been maintained. If satisfied they will then issue you with an offer.
- Conveyancing work will need to be carried out and some lenders may insist that only a firm of solicitors with two or more partners. During the process, local searches will be conducted and a report and title will be sent to the new lender. If you are in need of a Solicitor your adviser can recommend one.
- The solicitor will ensure that your previous lender is repaid when the new lender releases the mortgage funds. If you are borrowing additional funds your Solicitor will release these to you on or around completion.
- Some remortgage packages will offer free valuation, free legals and arrangement fees. Be aware that “free-fees mortgages “ can be very appealing they may not be the most cost effective in the long term. Ask your adviser about this.
What does it cost to remortgage?
In some cases “nothing”, however be aware that depending on your existing deal there may be some fees involved:
- Early repayment charges (applicable in some cases).
- Lender's arrangement fees.
- Booking and broker fees.
- Valuation fees.
- Legal fees.
- Higher Lender Charge (in some cases).
- Discharge fees from your old lender (often called a 'sealing fee')
When it’s not worth remortgaging?
If you have recently taken out a fixed rate mortgage or a discount mortgage or you may find that early repayment charges will make it too expensive for you to take the loan elsewhere in the first few years of the term. These repayment terms can stay in force long after your original fixed rate or discount has run out.
Some lenders may only accept remortgage applications if the loan required is above a minimum level of around £25,000. Fees can also outweigh the small savings offer that you might get when remortgaging.
If your employment status has changed recently Lenders will need reassurance that you will be able to repay the loan you take on, and will want to know what your future income. If you have gone from employed to self- employed and have not had a chance to build on a good track record for your business then you may find it difficult to get a good remortgage deal.
Buy to let remortgage
Whilst some investors look at remortgaging or switching products there are still a majority of borrowers that don’t think to change their buy to let mortgages as they believe it to be too complicated or too costly.
However this sector of the marketplace is a lot more competitive and lenders are improving their products all the time. The process is really quite simple why not call 0800 279 8000 and let an Adviser take the hassle out of the process and help you find a product that suits your needs.
More Buy to let investors look to remortgage their Buy to let properties for the same reason that they would want to remortgage on their domestic property. Especially in times where
- Remortgaging may help you to hang on to your investment rather than consider selling remember you will be subject to capital gains tax should you decide to sell.
- By remortgaging you may even be able to avoid low rental yields by remortgaging to a better deal.
- Savings on the mortgage by switching the Mortgage product and rate change
- Reduce the term of the mortgage
- Releasing equity to grow your property portfolio
- Home Improvements
There maybe a charge from your existing lender if you remortgage.
Not all buy to let mortgages are regulated by the Financial Services Authority
We are authorised and regulated by the FSA (Financial Services Authority). Our FSA registration number is 448415.
WARNING: YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. There may be a fee for our service. This will be no more than 1.5% of the loan. The precise amount will depend on your circumstances but we estimate this will be £149.
Lifetime is a trading name of Lifetime Financial Management Ltd which is authorised and regulated by the Financial Services Authority for advising on and arranging mortgages and insurance.
Lifetime Financial Management Ltd, registered in England and Wales, registered Number 3652194. Registered address: 1st Floor, City Gate, 17 Victoria Street, St Albans, Herts, AL1 3JJ. Director: Paul Merrigan. |
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