How to remortgage my property

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How to remortgage my property

If you are coming to the end of a fixed-term mortgage, you do not have to just go with your existing mortgage provider when your current mortgage ends. Mortgage lenders should take into consideration the current value of your property before an offer is rolled out.

You may be looking to remortgage to get a better variable rate mortgage or need some additional borrowing.  You may be considering remortgaging if you require some additional borrowing for home improvements like an extension or loft conversion.

Savvy homeowners check the whole of market to see what mortgages are out there and how much their property is worth at the time of remortgaging.

Get a copy of your credit score

Your credit score will confirm how good your credit rating is with a lender.  If your score is low, you will need to find out why and also to improve it as quickly as possible.

  1. Apply for your credit score.  For guidance on how to apply for your credit score click here.
  2. If your credit score is good, then you can skip to point 1 of the guide below.
  3. If your credit score is low, you need to apply for a copy of your credit report to find out what is causing the issue.  Click here for guidance on how to apply for your credit report.

Now follow this guide

1. Get your documentation in order.

You will need the following documents to hand:

  • Copy of photographic ID (driving licence or passport)
  • Current P60 (if employed)
  • Last two years SA302 (if self-employed) from Inland Revenue
  • Copy of your tax declaration (if self-employed) from Inland Revenue
  • Last three months payslips
  • Last three months bank statements
  • Monthly expenditure form

2. See how much your current property is worth:

  • Check Zoopla to see how much your property is worth by signing up for a free estimate.
  • If you have carried out any home improvements, make sure you update this information to reflect the current condition of your home on the website.  You may find the estimate of your house value goes up which means your loan to value will be lower (you could then be offered a lower interest rate which could mean a lower monthly mortgage payment).
  • Print out a copy of the estimate.

3. Get an estate agent to value your property (optional):

If you prefer to get a more realistic value of your home if you were to sell it in the current market, get a price for your property from at least three estate agents.

4. Contact your current mortgage provider:

  • Give them your current estimate from Zoopla or estate agents valuations.  Ask whether they can give you a better deal on your current mortgage.
  • Once you have this information, you can search the market yourself to see if you can find a better deal.

5. OR Contact a mortgage advisor

  • Give your mortgage advisor the current estimate of your property from Zoola or estate agents valuations.  Ask them to find you a better deal on your current mortgage.
  • Once they have found a deal, check online yourself to see if you can better it (optional).

6. When you or your mortgage advisor/broker finds a deal:

  • You will need to fill in an application form.
  • Send the lender or your mortgage advisor copies of your documents.
  • Send the lender or your mortgage advisor the monthly expenditure form.

7. You should be given an agreement in principle.

  • The lender will now fully check all your paperwork and may come back to you to ask for more information.
  • The lender may send a surveying company to your home to check your properties worth.

7. At this stage, you may need a conveyancing solicitor.

  • This will depend on why you are borrowing:
    • If you are remortgaging for a further advance with your current lender, you will not need one.
    • If you are remortgaging to get a better deal with your current lender, you will not need one.
    • If you have found a deal elsewhere, you will need one, however, the lender may offer a free legal product to you so do check with the lender first.

8. Once the mortgage has been agreed and the valuation has been confirmed.

  • You will be given a mortgage declaration to sign and send back to the lender or mortgage advisor.
  • If your remortgage is for further borrowing (“Further advance offer”), you will be sent a form to sign and send back to the lender.
  • Your solicitor will arrange for the transfer of funds once the re-mortgage is complete.

9. You should now look to reviewing your mortgage life insurance to take into consideration the change in cover you may now require.  You should also look to reviewing your buildings and contents insurance to take into consideration the change in cover you may now require.

10. If you are remortgaging to buy another property (to become a landlord), lease extend your property or looking to extend your property:

  • Buying another property to become a landlord: click here for further information.
  • Extending your property: click here for further information.
  • Extending a lease Agreement: click here for further information.

Following this guide does not constitute you taking legal advice.  The Home Guide Expert Limited is not regulated by the FCA (Financial Conduct Authority) and does not claim to do so.  We recommend that you always check with a reputable Mortgage Advisor/Financial Advisor before making any financial decisions to ensure that a product and/or service is suitable for your circumstances.