When you remortgage, you are switching your existing mortgage to another deal, and frequently another lender.
Remortgages can be used for various reasons, most people simply switch mortgage because it will work out cheaper for them.
For example, the introductory discounted interest rate may have finished with your current lender; therefore you could get a discount, or a lower APR, with another lender. Obtaining a lower rate may also reduce the total amount of money you must repay over the full life of the loan.
Remortgaging can also serve to release equity in your property, for example you may want to consolidate debts, buy another property or carry out home improvements.
Obtaining a remortgage is fairly simple. Generally, the process is straightforward and similar to obtaining any other mortgage.
Authentic Mortgages have prepared a straightforward guide to a remortgage:
- Mortgage Product Selected: All mortgages products are discussed with you and the most appropriate one selected. All quotes and research are provided to you in writing.
- Decision in Principle: Once you have decided which lender and interest rate best suits your circumstances, a ‘decision in principle' will be obtained from the lender. At this stage, a brief overview of your income, expenditure, address history and employment history will be provided to the lender. The lender will carry out a credit check, establish whether you are on the voters roll and check your payment history on any existing credit agreements.
- Application Submission: A mortgage application will contain information such as your employers address, your direct debit details, solicitors details etc. Once your mortgage application is sent to the lender, the lender will generally assess it within 48 hours. They will confirm that your case has passed all initial underwriting checks and request a list of documents for you to provide such as, a valuation on your property, identification such as a passport or driving licence, a direct debit mandate and proof of your earnings such as payslips or accounts. All lenders have different requirements and may ask for more or less information depending upon your circumstances.
- Mortgage Offer: Once the lender receives all the documents and information they have requested, your case will be passed to an underwriter who will issue a ‘mortgage offer'. This is a formal offer of loan from the lender to the borrower.
- Solicitor Instructed: The solicitor will carry out all necessary legal work required including checking the title of the property and establishing the amounts of any debts secured against the property. A bankruptcy and IVA search will be completed and he will also request a copy of your identification.
- Mortgage Completion: Once the solicitor has carried out all legal work, he will request the funds from your new lender, settle your existing mortgage and pay any surplus to you.
In general, a remortgage can be accomplished in four to six weeks or less. The length of this process depends on the lender and the specific circumstances surrounding the property being remortgaged.
Authentic Mortgages have an office in Earlsfield, South West London however we provide advice on any UK mortgage . Authentic Mortgages are proud to be totally independent , this means that we can search the entire market to find a suitable mortgage that will meet you individual needs.
We do not charge upfront fees which helps to reduce your initial outlays. Any fees that we do charge are payable on ‘successful completion' of your mortgage, this means that if you decide not to proceed for any reason or if we are unable to secure you a mortgage, you do not pay us a penny. Our fee will be confirmed to you both verbally and in writing before you decide to proceed. We believe in offering a transparent and fair service.
Authentic Mortgages will not charge you a fee for an initial consultation. For our mortgage advice we can charge a fee of typically £595 or we can receive commission from the lender. There is a typical administration fee of £99, this is payable on successful completion of your mortgage.