The Remortgage Process

Remortgaging or refinancing is the same process as applying for a new mortgage without buying a new home. There are two main reasons for remortgaging- one is to release equity and the other is to get a better deal than the one you already have. Many homeowners use the cash to start a programme of DIY and others use it for a holiday of a life time whilst still holding on to their main asset. Even if you have had a history of bad/adverse credit, there are plenty of adverse remortgage products around.

Remortgaging can significantly reduce your monthly outgoings and literaly save you hundreds or even thousands of pounds every year. If you are releasing large amounts of equity, it is possible to overpay your mortgage loan and pay it off early without incurring any redemption penalties.

Researching the market for a better option is time consuming but will pay dividends. A mortgage broker will have all the most recent adverse products to hand and having a bad credit history should not put home owners off from remortgaging. The whole process will take far less time and depending on the lender should take no more than six weeks - some lenders offer a fast track service and can complete in a week but this will depend on your circumstances.

Your lender will need to conduct a valuation and base the amount they are prepared to lend on this - just as you would a standard mortgage.

Check that your existing mortgage does not have any penalties. Write to your lender and ask them to send you a written statement indicating the exact amount outstanding and this will show any penalties or fees to be charged for redeeming your mortgage.

Calculate what the legal fees will be. You will be able to access the savings by comparing the costs of remortgaging against the long term costs of less monthly repayments which will acrue over time.

Your costs could include the following;

• Arrangement and administration fees for the new mortgage.
• A mortgage valuation fee.
• An redemption penalties.
• Solicitors fees.
• Land registry and local search fees.