Rise in Re-Mortgages. Are you thinking about staying put?

There are many reasons that people look to re-mortgage their property. It could be because their current deal has come to an end or they may be looking to save some money on their monthly outgoings.

Whatever the reason, there are some things you should consider before you take those next steps.

Getting a mortgage has become more difficult since the financial crisis. Banks and building societies have tightened up their lending procedures and there are stricter financial tests on affordability now. This means that when you signed up for your current mortgage 5 years ago, things were very different.

So you’ll need to check how much you can borrow based on the new affordability criteria, rather than the old method. To gauge this, you’ll have to get advice from an Independent Mortgage Advisor who can look at your options and talk you through the criteria too.

If you are looking to re-mortgage before your current deal has come to an end, you should check whether there are any early repayment charges, how much these are and when these charges end. You’ll need to factor these additional costs into your re-mortgaging costs to make sure it really is worthwhile making the change right now.

The other charge you should look out for is a deed release fee. This is an admin fee of usually around £50 to £200. If this fee wasn’t in your original paperwork for the mortgage, ask for it to be removed.

If you still think that a re-mortgage is the way forward, you’ll require a valuation to be carried out on your property. Your future mortgage company may send a valuer or they might just look online for valuations of property in your road.

Once they’ve decided on the value, you’ll need to gather together paperwork to process the re-mortgage.

You’ll need proof of income – probably three months of payslips if you’re employed or three years of accounts if you’re self-employed along with three months of bank statements and details of any additional regular payments such as bonuses or commission.

You should discuss all the options available when you re-mortgage with your Mortgage Advisor. They can offer you advice on whether you want a fixed term, capped, tracker or just a standard variable rate. There are pros and cons to all of them and what you choose will depend on your circumstances too.

There is some legal work to do, along with the cost of a valuation but both these costs are often included you may need to pay a mortgage broker a fee so always check.

For advice on staying put or buying a new property, talk to our conveyancing team on 01264 353411, email: conveyancing@bsandi.co.uk or contact us via our free, no obligation, online enquiry form and we will be more than happy to help.