Ardent Team

17 September 2019

A Guide to Re-mortgaging

Your mortgage can be the single, most expensive outgoing within a household budget. Therefore, it is important to review your mortgage deal regularly. You could be overpaying or stuck on a deal which is no longer suitable. The market is forever changing with new mortgages and new criteria from different lenders. For that reason, obtaining mortgage advice at the time of re-mortgaging can be vital to obtaining the best deal for you.


Why might you re-mortgage?

-        To save money and reduce the amount of interest you are currently paying.

-        You have come off your lender’s initial deal period and are now on their Standard Variable Rate.

-        You are coming to the end of your current deal and your existing lender is offering you a higher rate.

-        You are looking to borrow extra for home improvements, buying another house or debt consolidation.

-        You are on a variable/tracker rate and you are looking to have a set payment moving forward so know you know exactly what you must pay every month.


When is the best time to remortgage?

The best time to start looking at re-mortgaging is 3-4 months before your existing deal is about to expire. Usually, you will have a fixed or tracker product that has an initial rate for 2-5 years. As soon as this expires it is likely that you will go on to your lender’s Standard Variable Rate. Your payments will increase if this happens and the interest rate can be double or treble the best deals on the market.

Your existing lender may write to you with a couple of new deals that are better than their Standard Variable Rate. However, it is important not to be tempted to take whatever they offer. There are thousands of deals out there on the market, which could save you considerable money to spend on your home, family or self.

This is where we come in. We can source the best deals from across the whole of the market and so you can find the best deal. Getting financial advice at the time of re-mortgaging will improve your plans going forward so you can continuously save money. Our team of qualified mortgage look to provide clear, coherent and sound advice.

If you are in a fixed deal already and still have a few years left, you may incur early repayment charges if you want to re-mortgage. You may still have the option of additional borrowing on your current mortgage to avoid paying these charges. If you’re unsure, we can explain this in more detail.

Do not be put off of re-mortgaging if your circumstances have changed since you first got your mortgage. Income can increase or decrease, and outgoings can do the same. Whether you are self-employed, day contracted, on benefits or a zero-hours contract, these are all common income types that a number of lenders will accept.



Will I not have to pay high fees to remortgage?

The mortgage market at present has thousands of deals, therefore lenders offer many great incentives to re-mortgage. They will usually provide a free valuation and free legal services. This means that you do not have to pay any costs to get your property valued or for the solicitors to carry out the legal work. Normally, these are the two of the highest costs when initially purchasing the property. More and more deals offer cashback incentives on completion. For example, alongside the free valuation and free legal services, you may also receive up to £500 cashback once the mortgage has completed. You could use this to pay some more money off your mortgage or clear credit card debts.

There may be a product fee on a mortgage, which can be anywhere from £495-£1995. A deal with a product fee would only be recommended if it was going to save you money, for example when it offers a lower interest rate. The larger your mortgage balance, the more cost-effective a fee-paying product can be. You have the option to add the product fee to the loan amount or pay this upfront depending on your circumstances. However, do not worry as it is not mandatory to pay a product fee even if it is cost-effective to do so.


Which mortgage is right for me?

When you take mortgage advice at the time of re-mortgaging, our qualified mortgage consultants will spend time with you to understand your current and future circumstances. From this, they will advise and recommend the best mortgage for your circumstances. This could be a fixed rate, tracker rate, interest only, capital and repayment, 2 year deal or 5 year deal. There is no set product for everyone, at Ardent we will clearly explain which one is best suited to you.


Next Steps…

At Ardent, we can also help you with…

-        All residential mortgages.

-        Buy to let mortgages

-        Commercial mortgages.

-        Development finance

-        Short term finance

-        Mortgage and Family protection


If you would like to obtain advice on any of these areas Nick, John and Graham, who are fully qualified mortgage consultants, can assist you with your mortgage. Please feel free to message us on LinkedIn, email or call the office.



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