Remortgaging your property

What is Remortgaging?

Remortgaging is moving your current mortgage from one provider to another, but not moving house. If you're looking to switch to new mortgage deal or borrow more money with your existing mortgage lender, this isn't remortgaging.

Reasons to remortgage

There are many reasons why you might choose to remortgage, including:

• To find a better deal. This could be a lower mortgage rate or more flexibility, such as overpayments
• Your existing mortgage deal is coming to an end
• Looking to extend the term of your mortgage or borrow more money but your existing lender is unable to help
• You want to release some equity in your property, may be home improvements or to purchase a buy to let
• Looking for a better level of service

 

When remortgaging may not be worthwhile:

• Your Early Repayment Charge (ERC) to exit your existing mortgage deal is too high
• Your outstanding mortgage balance is small. Given some of the fees involved, the smaller your mortgage debt the less sense switching deals is likely to make. Furthermore, many providers may not be prepared to offer smaller loans.
• Your home's value has dropped. If so, it's not likely to be easy or in your interest to remortgage, particularly if you're in negative equity (your mortgage debt exceeds the value of your property). 
• Remortgaging costs are high: If costs associated with remortgaging your home that you own outright, such as mortgage and legal fees and higher interest rates, are larger than other options such as a loan, it would not make long term financial sense. 

Whatever your reason, you should consider your options carefully, especially the impact of any fees, restrictions or charges that might occur because of the change. 

Other tips about remortgaging:

• Seek advice from your current mortgage provider to help work out the cost of an ERC in relation to potential mortgage savings. Find out more about ERCs on our mortgage glossary.
• Think about what you need the savings for and whether there might be another way to release cash sums or savings.
• The Money Advice Service offers more information on negative equity.

If you're reviewing your current mortgage arrangements and are looking for a new deal or want to borrow further funds, look no further than The Cambridge. Contact us to discuss your options.

Have an existing mortgage with The Cambridge? Find more information about switching deals or borrowing more money.

The Cambridge guide to getting a new deal on your mortgage

Remortgaging with The Cambridge can be achieved in with these simple steps: 

 

1. Discuss your mortgage with our experts

Generally, we can lend up to 90% of your property’s value. After assessing your circumstances and ensuring the loan is affordable for you, your Your Mortgage Adviser will recommend which of our mortgages will best suit your needs, and then provide you with a personal illustration. If you then wish to proceed, your Mortgage Advisor will help you to complete an application form.

 

2. The mortgage application assessment

Once we have received your completed application form, have conducted a credit search and received evidence of your income, we will need to arrange a valuation of your property to assess the security offered for the loan. We will pass your details to Legal and General Surveying Services who will instruct the valuer. Legal and General Surveying Services will contact you directly to arrange a suitable time for the valuation to take place and collect payment. For some products we will pay for the standard valuation report. Once our enquiries are complete, we will send you a ‘Mortgage Offer’ confirming that your loan has been agreed. The Mortgage Offer includes a full illustration of mortgage costs and terms.

 

3. The legal work and fees

We then instruct our panel solicitor to arrange the legal work. For some products we will pay the standard legal fees required to arrange the remortgage using our panel solicitor. If any additional legal work is required that is not normally associated with a remortgage, such as rectifying title defects, transfers of equity or other legal matters, the solicitor will advise you of the cost and you will be responsible for any fees incurred. You may, if you prefer, instruct your own solicitor to carry out the remortgage legal work.

When you appoint a solicitor it is important to be aware that The Cambridge operates an Approved Solicitor Panel. The panel is made up of solicitors from across East Anglia, and other parts of England who we have approved to act on your behalf. If you appoint a firm that is not on our panel, we will require our own partner solicitor to act on our behalf. You will be responsible for our legal fees in addition to your own legal fees. Your Mortgage Adviser will be happy to help you find a suitable panel solicitor.

The solicitor will undertake the necessary legal procedures associated with a remortgage, including making the necessary arrangements to repay the loan with your current lender and preparing the new mortgage documents. Your existing lender may charge a fee to discharge your existing loan.

We may charge an application fee to reserve funds. Some application fees have to be paid upfront and are non-refundable but in other cases the fee can be added to your loan. If added to the loan we will charge interest on the fee during the term of the loan.

There may be early repayment charges applicable if you overpay or repay the loan in full during any fixed, tracker or discounted rate term.

Your Mortgage Adviser will bring these fees to your attention when discussing your mortgage options. 

 

4. The switch is complete

Your new loan account is set up and the switch is complete. Now you start to benefit from your new mortgage deal.

 

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE