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Writer's pictureKnightwoodM

When Can I Remortgage?


A common misconception is that, to avoid early repayment charges, you must wait until your current deal ends to begin the application process and remortgage. However, you can in fact begin the remortgage process up to 6 months in advance of your existing deal ending.


This is because, as a general rule of thumb, most remortgage mortgage offers are valid for 6 months. Therefore, you can begin the process up to 6 months in advance, prepare all documentation and have the offer issued ready for you to complete once your fixed rate ends. This way you avoid reverting to your lender's standard variable rate, which is commonly a considerably higher interest rate. This will of course in turn increase your monthly payments. You will also avoid paying any early repayment charges, as we will ensure the solicitors are aware you only wish to complete once the fixed rate ends.


So why start the process earlier? You can only 'bank' and 'lock in' an interest rate once a full mortgage application is submitted. Once it is submitted, you are then protected from any future rate increases from a lender. As time goes on in the build up to your rate ending, we will regularly review the market and ensure you remain on the best interest rate available. The majority of lenders have a very straightforward process, once an application has been submitted, whereby you can 'swap' onto a lower interest rate from their current range, even once the mortgage is offered. Some lenders may request additional documentation to do this, and if it makes sense to switch to a whole new lender it is likely we will then require updated documentation and a new application submitted.


How do you prepare for a remortgage? If it turns out another lender is more competitive than your existing lender, and you wish to remortgage to them, you will need to provide documents such as your latest 3 months bank statements, proof of your identity/address and proof of income. Different lenders have varying criteria, but the documents mentioned are a common baseline.


If you are remortgaging away from your existing lender, they will run a credit check on you. It is important to ensure all of your details are correct as per the electoral register so you can be validated on identity checking systems. Check your credit score, and if it's a lower score you can look to improve it by keeping up with credit commitments, cancelling unused accounts and using a credit card in a responsible manner.


If you'd like to discuss remortgaging, please feel free to get in contact with us! One of our friendly advisers will walk you through the process and answer any questions you may have. From the point of application until completion, we will continuously monitor the market and ensure you are on the best deal for your circumstances.

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