What is remortgaging?
Remortgaging is when you take out a new mortgage for the same property. For instance, if your current fixed-rate mortgage is coming to an end and you don’t want to end up on your lender’s standard variable tariff, you can take out a new fixed-rate mortgage with the same lender or a different one.
Popular reasons to remortgage include:
- Your current fixed-rate mortgage is expiring
- You want a better rate
- The value of your house has increased
- You want to borrow more
- You want to overpay, and you can’t on your current deal
Just remember that if you remortgage before your current fixed-rate term comes to an end, you may have to pay an early repayment charge.
How much can I borrow for a buy-to-let property?
Thinking about borrowing against a buy to let property? How much you can borrow for a buy-to-let depends on the property’s rental income per month. This will be used to work out how much you are able to borrow to purchase it.
What size deposit do I need for a buy-to-let?
When should I speak to a mortgage adviser?
You should contact a mortgage adviser when:
- You’ve found a property
- You have a deposit (of at least 5% of the property’s value for personal property purchase, or 25% for a buy-to-let property)
- You’ve checked your credit score is healthy
Do I need to own my own home to get a buy-to-let mortgage?
There are fewer options available to landlords who don’t also own the home they live in, however it is still possible to get a buy-to-let mortgage.
Can I move home if my current mortgage contract hasn’t ended?
Yes, you can. However, you may face exit fees and early repayment charges. Check the terms of your current mortgage to find out how much you will need to pay and whether it’s worth waiting until your mortgage contract ends. You could also look into transferring or porting your current mortgage deal to your new property.
Can I transfer my existing mortgage onto a new property?
This all depends on your current lender and mortgage contract. If you wish to do this, get your current mortgage details and speak to an adviser. They will be able to tell you if porting is possible and whether that is the best solution – sometimes it is worth paying the early repayment charge and getting a new product. An expert adviser will be able to get you the right solution.
Will I need another deposit?
This all depends on the value of your next property compared to your current property, and how much equity is currently in your home. If you’re downsizing or have been paying off your current mortgage for a long time, it’s likely that you’ll have enough equity in your home to cover the deposit needed for your new property.
If you’re upsizing, the deposit you need for your new property is going to be bigger than the one you needed for your current home. If you’ve been paying off your mortgage for a while now, you may have enough to cover it from selling your home. If not, you’ll need to find the money to pay the difference.
What should I think about before I remortgage?
Before you remortgage, check your credit report well in advance to make sure it’s in as healthy a position as possible. If you spot any errors, make sure you get them removed.
Other remortgage considerations
You can also check if there are any quick credit score-boosting wins that you can capitalise on. For instance, registering to vote or keeping your credit utilisation low for the next few months.
Can everyone remortgage?
To remortgage, your outstanding mortgage must not be more than 95% the property value. This means the equity you have in your home (how much of it you own) must be worth at least 5% of the property’s value.
We know that finance can be pretty confusing. That’s why we want to give you the clearest, jargon-free guidance we can so you have the power to make the right decisions about borrowing. To help you with this, we’ve gathered all of our most asked questions and answered them in detail for you.