UK Remortgage Process

UK Remortgage Process

UK Remortgage Process

A step-by-step guide to remortgaging a property in the United Kingdom

Estimated reading time: 5 minutes

1. Your current deal is about to end

2. Find out how much you owe

Once you request it, your lender will provide you with a redemption statement. This will inform you of how much monies are needed to pay off the remainder of the mortgage loan (fees and all). This will be the amount you need to borrow if you decide to remortgage with a new lender.

3. Find the best remortgage deals

4. Decide what type of mortgage product you want

With the help of your advisor, you will need to choose between a repayment or an interest-only mortgage. Interest only mortgages have lower monthly repayments, but when you the mortgage ends you will still owe the same amount of capital. If you decide to go interest-only you must have a repayment vehicle to repay the loan once the mortgage ends, this could be selling the property.

Choosing between interest-only and capital repayment aren’t the only decisions you will need to make, but again, your mortgage broker can fully explain them and help you make the right choice.

5. Find a solicitor (if you’re moving to a new lender)

If you are moving from one lender to another, you will need to instruct a solicitor or licensed conveyancer. Their job is to organise any paperwork required in the process. This includes but is not limited to signing the mortgage deed and transferring the property title.

Some lenders will offer you ‘free legals’ in which case they will instruct a solicitor on your behalf. In most cases, you will also have an option of taking ’cash-back’ instead of ‘free-legals’ which will enable you to find and instruct your own.

6. Affordability and eligibility checks – time to organise your documents

  • Your Identity
  • Your income
  • Your credit situation
  • Your Liabilities

7. Agreement in Principle

If you are remortgaging your current property to purchase another, this agreement will add weight to your position when speaking to estate agents and requesting property viewings.

8. Mortgage Application

Once you have decided which product you want from which lender, it’s time to apply for your remortgage. Your broker will guide you through the application process and help you collate all of the evidence you need to ensure your application is a success.

9. Mortgage Valuation

10. Mortgage Offer

If your application is approved, then the lender will send you and your solicitor a mortgage offer. Mortgage offers typically last for six months, but it’s important to take note of the offer expiry date in case it is different.

Also check the offer thoroughly to ensure the rest of the information is correct. Incorrect information on a mortgage offer could delay you receiving funds, so this is especially important.

11. Pay off your old mortgage

The solicitor helping you with this transaction will now request funds from the new lender and use these to pay off the old lender.

12. Register the new mortgage

Your chosen solicitor will now register the mortgage holders details with the Land Registry and where necessary, the title deed will be transferred to the new lender.

Need mortgage advice?

Speak to an expert from Prospect Tree Mortgages to compare the marketplace and find the best products available to you and your circumstances.

Whilst shopping around for mortgages, my partner and I came across Prospect Tree, Phil and the guys have been amazing through the whole process not just with finding the best mortgage but helping with all the life insurance and other bits that come with it. They have dealt with everything leaving us stress-free. So thankful for finding them and grateful for their help! 100% recommend.

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