Remortgages / Remortgaging

Remortgaging your home may appear to be a complicated process but our service will help make the process as simple as possible.

A remortgage can be taken for two main reasons, the first is to take advantage of lower interest rates available from mortgage lenders. In these circumstances your current mortgage will effectively be replaced by the newly arranged mortgage and you will immediately start benefiting from the lower interest rates.

Another reason for choosing to remortgage is to change to a different repayment plan or to release some of the equity that you have tied up in your property. If you wish to reduce the amount that you are paying each month then your can arrange a remortgage that is repaid over a longer period.

If you have paid off much of your mortgage or if your house has seen its value rise over the time in which you have owned it, you may well have a large amount of equity invested in it. You can turn this equity into cash by remortgaging to an amount that is greater than your current outstanding mortgage amount.

Whether you are looking to release some equity in your property or you simply want to switch to another deal which could reduce your monthly repayments, we will search through the hundreds of products available to find the best buy for you.

Our service is independent and impartial, meaning we are not tied to any one lender and can search the whole UK mortgage marketplace to get you a great deal.

There are currently millions of borrowers paying their lender's standard variable rate (SVR). No lenders SVR will be the best deal they can offer. Unless you have just come out of a special introductory deal like a fixed rate or a discounted rate, there is nothing to stop you switching from the SVR of your current lender to a lower rate or a more suitable deal. And even if you have just come out of a special deal and are obliged to pay a penalty to switch to a new one, the figures may well add up in your favour.

More and more UK homeowners are moving their mortgage to save money. Which is a good thing, considering that mortgage rates have dropped considerably over the last few years. A remortgage is essentially no different to a normal mortgage, with one crucial difference - you are not buying a house. All you are essentially doing is taking out a new mortgage to replace the old one, while shifting your debt from one lender to another.

Remortgaging isn't nearly as much hassle as most people think. One of our dedicated mortgage advisors looks after your remortgage for you - making it all less effort than you first imagined! In today's competitive market, many borrowers choose to switch their mortgage every few years in order to take advantage of the new rates on offer. Those that remain on the same deal for the full term of their loan could lose out on a range of potential benefits, not least the opportunity to reduce the total amount paid back, which could be a significant margin in some cases. In simple terms, remortgaging involves switching your current mortgage to a new deal, arranged either with your existing lender or with a new lender. As a current homeowner you may want to consider taking this step for a number of reasons, such as:

• To save money - If you're paying your lender's Standard Variable Rate (SVR), it's highly likely that your existing lender will offer a better rate and greater flexibility on other available products. This could allow you to save money on your monthly repayments, or to repay your mortgage sooner. And if your current lender doesn't offer better rates or greater flexibility on its other products, you may want to consider switching to another lender, even if doing so would trigger early repayment charges payable to your existing lender, as this could still mean a net saving to you.
• To raise money - Higher income or a rise in your property's value means you could increase your mortgage to help pay for major outgoings such as a wedding or your child's university costs, rather than borrowing separately, and in some cases more expensively, for the outgoing itself.
• To avoid moving home - It can be cheaper and more convenient to adapt or add an extension to your existing home, paid for by remortgaging or a further advance, than to move home.
• To consolidate your debts - Remortgaging can allow you to release some of the equity you hold in your home and consolidate other debts, such as a car loan or credit cards, which can attract higher rates of interest than that of your mortgage.

1. The lender will require a valuation to ensure the value of your property is sufficient for them to lend on. Property prices can fluctuate over a short space of time so that, even if you're re mortgaging a year after purchase, you could still see a change in your home's value.
2. You'll be required to make an application to the lender in the same way as when buying a property. The application has to be underwritten by the lender, who may require evidence that the loan to date has been maintained. They'll then issue you with an offer.
3. Conveyancing work will need to be carried out, and many lenders will only instruct a firm of solicitors with two or more partners. During the conveyancing process, local searches will be conducted and a report and title will be sent to the new lender.

It must be remembered that there are costs attached to remortgaging, outlined in the next paragraph. However, purely in terms of ongoing monthly expenses, remortgaging has the potential to slash a lot of money from your outgoings. Here are a couple of examples:

• If you are paying a Standard Variable Rate of 7.5 percent on a 25 year mortgage of £100,000, your monthly outgoings will be somewhere around the £750 mark, depending on the discounts that you initially enjoyed.
  Switching to a new 25 year tracker mortgage that for this example is charging 3.3%, your outgoings would immediately fall to around £495. This means you would be cutting your monthly expenditure by approximately £255, potentially cutting your outgoings by £3060 each year.
• In a more extreme example, the borrower is currently paying 7.7 percent on a 25 year mortgage of £150,000. If for some reason this rate had been paid since the start of the mortgage, the current monthly outgoings would be around £1140.
  If the borrower were able to remortgage on a heavily discounted two-year fixed rate mortgage charging just 2.9 percent, then the current level of repayments would fall to just £710. Even if the mortgage then reverted to 7.7 percent, this would still offer potential savings of £430 a month or £10,320 over the two-year fixed rate period. If this money was invested elsewhere or used to reduce the mortgage debt, it could be worth considerably more to the individual.

Remortgaging can involve less cost than those incurred when buying a property, since in most cases the following charges either won't apply or will be lower than when you first purchased your mortgage, including:

• Stamp duty - you won't be liable for this at all when re mortgaging.
• Legal fees - solicitor's costs could be lower than when purchasing the property, since the legal process is less complex for re mortgaging than purchasing. We also have exclusive deals where your legal fees are paid.
• Homebuyer's report or survey - if you've undertaken a homebuyer's report or full structural survey when purchasing the property, you're unlikely to need to repeat this exercise when re mortgaging.

1. Where you have Early Redemption Penalties - If you have recently taken out a fixed-rate or discounted loan, you may find that early redemption penalties make it very expensive for you to take your loan elsewhere in its first few years. These penalties can stay in force long after the original fixed-rate or discount has run out.
2. If you have a very small loan - Mortgage lenders accept remortgage business only if the loan required is above a minimum level of £25,000. Fees may also be a problem with very small remortgage loans, as these may outweigh the small saving on offer.
3. If your employment status has changed recently - Lenders need to feel sure you will be able to repay the loan you take on, so they need to know your likely future income. If you have recently changed your work status from employee to self-employed, but have not yet had time to build up a reasonable track record for your business, you may find it difficult to get a good remortgage deal. Again if you use our remortgage service, we can work out whether the terms of your current loan don't sit well with a remortgage.

Finding the best mortgage to fit your needs is only the first step in what can be a complicated process. That's where a dedicated mortgage advisor comes in. Rather than leave you to manage things after they've selected the best remortgage for your circumstances, you'll be assigned a dedicated advisor who will work closely with your lender, solicitor and surveyor to manage the process right through to achieving a satisfactory offer.

They'll chase up references, instruct your survey and act as a central point of contact for your application. Your advisor will do their utmost to keep you fully informed on progress by committing to the following:

1. Contacting you in the way you find most convenient - at home, work or on your mobile
2. Giving you an estimated date for the next activity each time they are in contact with you
3. Answering any of your questions between 9.00am and 5.00pm Monday to Friday (or promising to get back to you within 24 hours if they are not available when you call)

With over 40 mortgage providers offering more than 8500 products, people are not just spoilt for choice, but frequently confused as to which is the most suitable mortgage product for their particular circumstances. Why not make your life a lot easier and ask the PHA Mortgages to help you find the best mortgage for your needs. You don't need to visit every single bank or building society on the high street to find the best rates, and you don't have to sit in front of your computer for hours on end looking at countless lists of mortgage products, lender details and interest rate information.

To apply, you just need to enter some basic information into our online questionaire. Remember that there's no obligation and no brokers fees to pay. We'll reply with a mortgage illustration tailored to your needs within 24 hours.

Or if you prefer, you can call a fully trained mortgage advisor on 0845 757 5551. It will only take a few minutes of your time today but could save you thousands of pounds in interest payments and will eliminate any worries you may have about getting the best deal possible.

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