Timing is the most important factor when it comes to remortgaging. Applicants need to figure out what is the best time to apply for a mortgage, when they are on a fixed deal term mortgage, and they are fixed deal is coming to an end. If they don’t remortgage in time, they will have to pay the higher interest rate.
Therefore, applicants need to find a suitable lender to apply for a new mortgage, or to apply for a different mortgage product with the same lender. When the applicant’s deal end date is near the lender would send an email or contact them to inform the expiration of the fixed deal.
Mortgage adviser to review your mortgage
This is where the help of an experienced mortgage advisor could be very helpful. If the applicants, contact a mortgage advisor to review the external remortgage options that are available for them, then they can review, whether, it is cheaper to apply for a new mortgage with an external lender or to apply for a product switch with the existing lender.
An experienced mortgage advisor would always review the current mortgage account information to see the available product switch options with the existing lender. An independent mortgage advisor would be subjective to any lender and consider all the available options to suggest a suitable mortgage deal.
Can I apply for a product switch in advance?
The mortgage adviser would do a meaningful comparison between the product search option and the external remortgaging option. The critical factor is to decide when to apply for the new re-mortgage. Some high street lenders allow you to apply for the product switch. Three months before the current fixed deal end date. It will give the applicant an opportunity to benefit from the new rate if the new rate is cheaper than the existing mortgage interest rate.
The existing lender would send a reminder to the applicant, three months before the current fixed deal end. The product switch application with the existing lender would be straightforward. The lender would not conduct a detailed underwriting as the applicants have been with the lender for few years. It is subject to timely settlement of the monthly mortgage payments. Some lenders would still require proof of income via pay-slips, self-employed SA302 tax calculations and tax year overviews, company accounts, employment contracts, etc. lender would request more documents if you are applying for further advance funds, along with the product switch.
Online mortgage advisers and re-mortgage
If an applicant is already registered with an online mortgage advisor. The online system would also send a reminder email or a push notification to inform them of the fixed deal. Alternatively, the mortgage advisor would give them a call to remind, and let them know, the best time to start looking at the new mortgage options.
It indicates that it is important to track and monitor the current mortgage status and determine the best time to apply for a mortgage. Some applicant thinks that they can start the remortgage process, even one or two weeks before the current fixed deal end. The biggest downside of this move is, in case, if the lender’s underwriting, or the valuation, takes time, It is going to be very difficult to complete the mortgage, before the fixed deal end date. It will result in the applicant, paying the higher standard variable rate mortgage payments.
Modern mortgage advisors have online systems to automatically remind all their clients of the remortgage date. Further, the system itself will suggest the suitable mortgage option available in the market.
How to find a new mortgage with different circumstances?
In case if there is any change of circumstances for the applicant, it is advisable to discuss, all these changes with the mortgage advisor. Then the mortgage advisor can review the current income, expenditure personal circumstances to figure out the suitable mortgage lender for the new re-mortgage
Applicants, often ask the question, whether it is possible to apply for a re-mortgage now and apply for a cheaper rate before the fixed deal comes to an end. The answer is yes. For example, if you apply for the new remortgage, and in case if you have a better deal from a different lender in the market, it is possible to apply for the mortgage again. However, it is important to highlight that there will always be a credit check on your file, whenever you apply for a mortgage.
It indicates that having an experienced mortgage advisor by your side when applying for a re-mortgage would help you to find a suitable mortgage option, depending on your circumstances.
Cost implications of re-mortgage applications
Most High Street lenders in the UK, do not charge a valuation fee, or an admin fee for remortgage applications. However, if you’re applying for a fixed deal, there would be a product fee involved.
Also, to arrange the legal work, and other paperwork, a solicitor would be required. The good news is most lenders in the UK, provide free legal services for remortgage applications. Further, they provide cashback options to fund your own solicitor. It means that remortgaging is not costly, as it seemed, due to free valuations and free legal service. If you find a suitable mortgage option with the help of a mortgage advisor, it will help you to save interest on your monthly mortgage payment.
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up the mortgage repayments.
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