How do I get remortgage ready? - LDN Finance

How do I get remortgage ready?

Earlier this year LDN released an article that listed the remortgaging process and what to expect when exploring remortgage options. Now, with the end of the year looming, clients are beginning to consider their remortgage options for 2023, especially as many are coming off record low mortgage rates and so are worried about their updated options.

To ensure we help clients prepare, we caught up with Associate Director Romit Patel who offers his top tips for ensuring clients are remortgage ready for the upcoming year.

What is a remortgage?

The process of remortgaging involves either reviewing an existing home mortgage or setting up a new mortgage to release equity that currently lies within your property. Residential, second homes and buy-to-let properties can all be remortgaged for a variety of reasons, which include;

  • Securing your mortgage payments for the next period of time, often via a new fixed rate.
  • Releasing money tied up in equity to fund home improvements, purchase further property or consolidate debt.
  • Facilitating the transferring the ownership structure of a property (following inheritance, for instance).

Often, a remortgage application can include combining all three of the above.

What do I need to look out for?

For clients assessing what remortgage opportunities are available, it’s important to take note of your current mortgage product end date. This is the date that the current fixed or variable date ends. It can be found on your original mortgage offer. Alternatively, contact us or your existing lender.

Most lenders will honour a new remortgage offer for a period of up to 6 months. As a result, we suggest reaching out to an adviser and starting the remortgage process 6 months prior to the renewal date of your current product. That will maximise the time for us to find a competitive interest rate, suitable for your current situation.

The value of obtaining advice and why you should use and adviser

Why should I use a mortgage adviser?’ is one of our most asked client questions however , we’re here to demystify why using an adviser during the remortgage process may help you save money in the long run.

Remortgaging can provide you with a chance to take stock of your current situation and review your current facility to ensure it still meets your priorities. Due to LDN’s wide-ranging lender access, we can often find solutions that your existing lender may not be able to provide should your objectives change. Speaking to an adviser can also ensure you have the best remortgage deal based on your circumstances.

If you decide to move lender, your remortgage application will involve a full affordability check plus valuation. Mortgage advisers like ourselves have the relevant systems in place – and lender contacts – to ensure that the various processes can be correctly and effectively coordinated.

Do I need a solicitor to remortgage?

Depending on the type of remortgage transaction you are looking to undertake, you may not necessarily need to involve a solicitor within the process. For instance, if you decide to renew with the same lender, in most cases, you do not require to engage with a solicitor.

However, should you decide to change lender, or your remortgage involves amending land registry, you will need to involve a solicitor. In certain cases, lenders may appoint a solicitor and cover the cost of the core conveyancing processes with disbursements applying for any additional work involved. We also have access to lenders that offer cash back as an alternative if you prefer to use your own solicitor, to help fund this expense.

For this reason, it’s important that you leave enough sufficient time in the remortgage journey to complete the necessary lender legal work. Keen to speak to one of our experts? Get in touch today.