The Remortgage Process Demystified: A Step-by-Step Guide

a wooden sign with the words remortgage and four model homes
Published on 7 August 2023

Are you a homeowner looking to secure better mortgage rates, tap into your home’s equity, consolidate debts, or find a more suitable mortgage product? Remortgaging could be the answer. In this comprehensive guide, we’ll break down the remortgage process, step by step. Answering any common queries and questions that usually pop up during the process. But wait there’s more we’ll also show how working with a fee-free broker like 177 Mortgages can make the process even simpler. We can save you time and potentially unlock exclusive money-saving deals. Products that are not available on the Internet or when approaching your existing lender or banks and building societies direct.

Step 1: Assess Your Current Mortgage Situation

Before you start the remortgage process it’s important to take stock of your existing mortgage. Gather as much information as you can, you will need to know your current interest rate, your outstanding balance, and the date that your current mortgage deal expires. It’s also important to note any penalties associated with any early repayment of your current mortgage. Most lenders will not charge these fees in the final three to six months of your current deal. Understanding your current mortgage terms will give you the benchmark when comparing any potential new deals. It’s important to remember that interest rates have increased dramatically in recent months.

Following the recent Bank of England base rate increases, it’s likely that any new deal will be on a higher rate than the interest rates that you are currently on. You can use tools like mortgage calculators to anticipate any new monthly repayment amount. This will help you when you think about your financial goals in Step 2. Also, assess any savings and their interest rates and any debts or borrowing and their interest rates and terms.

Step 2: Identify Your Financial Goals

Next, take a moment to think about your financial future – what was right last time you took out your mortgage product might not be right for you now. Circumstances change and you need to decide what are your short, medium, and long-term financial goals. What are the immediate changes that you are hoping to achieve in remortgaging? Are you seeking to lower your monthly mortgage payment, to improve your disposal income and ease your current financial burden? In the medium term, think about any changes that might be on the horizon. A new job, starting or expanding the family, or needing to support an older child’s university education. And longer term what are your aspirations? Are you looking to own your property outright sooner and want to shorten the mortgage term? Or maybe you want to release funds for home improvements to increase the property value or improve your quality of life.

Take a close look at your monthly income and expenditure. Can you anticipate any changes that could impact your financial stability? By taking a good look at your financial situation, you can set realistic goals and help determine the most suitable remortgage options for your needs.

Step 3: Consult a Fee Free Mortgage Broker

This is where the magic happens! Partnering with a fee-free mortgage broker like 177 Mortgages can be a real game changer. Our expert advisors will guide you through the entire process and ensure it’s hassle-free and efficient. Our friendly team are available seven days a week and we are open until late Monday to Thursday, meaning you can talk to us at the time that’s convenient to you. And unlike lenders tide to specific products, mortgage brokers have access to a wide range of mortgage options from various lenders. Some of these products may not be available when approaching lenders direct or searching on the Internet.

Step 4: Gather the Necessary Documentation

With the help of your broker, collate all of the essential documentation. You can find a comprehensive list of what is often required here, but you will need proof of income, recent bank statements and details of your property’s value. If your income isn’t as simple as a monthly salary then advisors will ensure that they present your financial information for example company accounts, in the best possible way to any potential lenders. Our team are experts at reading and compiling complex financial data to ensure they achieve the maximum lending to meet your needs.

Step 5: Compare Remortgage Options

Here’s where using a broker’s expertise really adds value to your remortgage process. We will scour the mortgage market on your behalf. With a deep understanding of your financial needs, short and long-term financial goals and the details of your mortgage amount and term, they will identify the products that are suitable. They will also be able to compare any incentives and all product fees to ensure they can present you with a simple view of the options available. This not only saves you time and effort searching the market, but it also ensures that some of the difficult things to understand like – the value of paying a fee for a lower rate, or the cost saving, and benefits of any incentives offered, can be fully explained and calculated by an expert. Once all the options have been presented to you the team will be on hand to answer any further questions or concerns you have about any of the options presented.

Step 6: Application Submission and Remortgage Processing

Once you’ve selected your preferred remortgage deal, the real excitement begins! Your dedicated advisor will quickly handle the application submission on your behalf. They will ensure that all the necessary documentation is meticulously prepared and submitted to the lender. This level of expertise will ensure that nothing is rejected when it reaches the lender and guarantees a smooth, seamless process, leaving you with total peace of mind. Your broker then acts as a liaison between you and the lender, taking care of any communication and queries that may arise. In most cases, any questions from the lender can be answered by the broker with no need for you to be contacted. This proactive approach ensures a hassle-free process and helps speed up the application’s processing time. 

Throughout the application stage, your adviser will keep you up to date at every turn. You’ll receive timely updates on the progress, allowing you to stay in control and feel confident that everything is moving forward as planned. With a broker by your side, you benefit from their extensive knowledge of the mortgage market and their ability to pre-empt and navigate potential obstacles that may arise during the application process. Rest assured that your best interests are our top priority.

Step 7: Valuation and Legal Processes

As your remortgage process progresses, your broker will arrange for a property valuation to be conducted. Some lenders will complete this process electronically using local house price data and will not need to visit the property. This valuation is essential to assess the current market value of your property, which influences the lender’s decision-making process. If required your advisor will coordinate with reputable valuers to conduct an accurate assessment of your property’s worth or work with the surveyor appointed by the lender. The valuation report will help determine the maximum amount you can remortgage and assist in securing the best deals.

Let’s face it, legal processes can be daunting. But with a fee-free broker at your side, you can breathe a sigh of relief. Your broker will handle all the necessary legal aspects, including liaising with solicitors and ensuring that all documentation is handled with care and efficiency. By entrusting these crucial steps to your broker, you can focus on other aspects of your life without worrying about the nitty-gritty of property valuation and legal procedures. Your broker’s experience and expertise will remove any stress and keep the process on track.

Step 8: Mortgage Offer and Completion

The moment you’ve been waiting for has arrived! Congratulations on receiving your mortgage offer. Your adviser will celebrate this achievement with you and ensure that the terms and conditions align with your specific requirements. Your adviser will meticulously review the mortgage offer, ensuring that it matches the terms and conditions discussed during the application stage. This thorough examination guarantees there are no surprises and that you are entirely comfortable moving forward. Once you give the green light and approve the mortgage offer, your broker will handle the final steps to complete the remortgage process. Sit back and relish in the satisfaction of knowing that your new mortgage is secured and ready for you to enjoy! With the remortgage process complete, you can now take advantage of the benefits tailored to your financial goals, whether it’s reduced monthly payments, funds for home improvements, or other exciting opportunities.

The remortgage process doesn’t have to be daunting. With the expert guidance of a fee-free broker like 177 Mortgages, you can simplify the journey and unlock exclusive deals that may save you time and money. Embrace the opportunity to achieve your financial goals while enjoying a smooth, efficient, and rewarding remortgaging experience. From application submission to property valuation, legal coordination, and mortgage offer review, your broker will expertly handle every step, ensuring a smooth and efficient journey to your new mortgage. Get in touch today for fee-free help and advice in finding the right remortgage.

177 Mortgages and 177 Protect are open 7 days a week. We’re always happy to talk through your mortgage, specialist finance and protection needs in more detail. If you’d like to book an appointment or simply find out more information, please get in touch.

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