The whole process can take around two months, but it may take longer, depending on whether or not all the paperwork is in order.
So it makes sense to start researching your remortgage options and apply three to six months before your existing deal is due to expire. In most cases you are able to secure your new deal in advance of your old one coming to an end, so that the mortgage can seamlessly switch at the point the old deal expires.
If your mortgage is still in its initial discount period and you remortgage during this time, you are very likely to be charged a penalty called an early repayment charge.
This can be a significant cost – easily thousands of pounds. So before you remortgage, find out if this charge will be made, how much it is and when it applies until. Once you have these answers, you’ll be able to work out the best timing for you.
The better your credit score, the easier it is to find good mortgage deals. The worse your score, the fewer you will have to choose from and the more you could have to pay in interest and fees. You may even struggle to get a new mortgage at all.
However, there are bad credit mortgage lenders which specialise in helping people who are struggling to get a mortgage from mainstream lenders.
If your credit situation is particularly bad, remortgaging with your current lender might be your first option, especially if you have met your repayments and you’re not looking to make changes to your mortgage, aside from moving to a better deal. Moving to another lender isn’t impossible, but you will be treated like any other new mortgage customer and will have affordability checks.
Find out what your current credit score is before applying for a mortgage as, if it’s not good, there are steps you can take to improve it. Paying off any debts you have and getting on the electoral register can boost your score.
Mortgage brokers and debt advisers can help identify lenders and products, which might be right for you. Brokers will either charge a fee for their services or offer free advice but take a commission from the lenders they recommend. Charities such as National Debtline and StepChange can offer free debt advice.
For help managing your finances, get in touch with our friendly team.
We can help with budgeting, as well as reviewing your mortgage to make sure you aren’t paying more than you need to.
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Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.
You may have to pay an early repayment charge to your existing lender if you remortgage.