FAQ

 

Looking to get a better mortgage deal in Hampshire? Look no further.

Use our frequently asked questions below to find out what you need to know.

What does it mean to remortgage?

Remortgage means taking out a new mortgage on your property, either to replace your existing mortgage, or as a means to raising money against your property.

A remortgage can entail either of two things. (1.) An existing mortgage can be reworked with the original provider to raise extra cash or to get better terms. (2.) A remortgage can involve completely transferring to a new mortgage provider.

Why should I remortgage?

Most people remortgage to negotiate better terms from their mortgage provider or they look for an alternative mortgage deal with better terms than their current mortgage. If you are looking to get a better interest rate, then a remortgage might be in your best interest.

People also remortgage their properties to raise money for debt consolidation, home improvement, or as a quick way to raise capital for any project.

People also enter into remortgage to enjoy the benefits of equity release on their property if the property has risen in value during the period of their existing mortgage.

When is a good time to remortgage?

You can actually remortgage at anytime, but most people remortgage to get a better deal at the end of their fixed term mortgage.

When your fixed term mortgage period ends, you might want to consider remortgaging in order to avoid moving over to the standard variable rate (SVR) which involves paying more each month. Planning your remortgage about three months before your fixed mortgage rate expires will give you enough time to change before the higher interest rate kicks in.

You can also remortgage if the equity on your property increases. The more equity your property has, the lower your loan to value ratio and the better mortgage deal you can get for yourself.

Your current mortgage provider might request that you pay an exit early repayment fee, so you might need to check with them before proceeding with your application.

Whatever your remortgage plans is our advisers are on hand to help you make the right decisions, give us a call on 02380970979.

What is the right mortgage plan for me?

The right mortgage plan depends on what you need and what your circumstances are. Whether you want a better rate, change your mortgage plan, consolidate your debt or simply want to get a different mortgage provider, the best plan is to first get some advice.

Send us an email telling us what your needs are using the contact need form and someone on our team will provide you with the mortgage plans we have to suit you.

How do I know the equity on my property?

The difference between the value of your property and the outstanding balance on your mortgage is your equity. For instance, if your property is valued at £300,000 and you have a mortgage of £250,000, the equity on your property is 25% or £50,000.

25% equity means you need a mortgage with 75% (LTV) loan to value. The lower your LTV is, the lesser your mortgage interest rate will be.

How long does it take to conclude a remortgage?

The remortgage process at Remortgage Fast UK can be concluded anytime between a month and six weeks. However, the process involves some steps and the time it will take to complete these steps depend on your personal circumstances.  

What are the costs involved in remortgaging?

If you are leaving your current mortgage provider, you might be required to pay an exit or early repayment fee. You will need to check with them to know what exactly to expect.

Depending on the mortgage package you go for, we may charge a mortgage account fee which can be added to your mortgage on completion.

Give us a call on 02380970979 to find out our fee and charges to help you plan your budget.

What is an agreement in principle?

An agreement in principle also known as a ‘Decision in Principle’ or a ‘Mortgage Promise’ is the first step to getting a mortgage. An agreement in principle provides an indication of how much you can borrow based on the details you provide. It also helps you put your finances in order before going ahead with the mortgage. Before an agreement in principle can be arrived at, we would need you to provide some information for us, such as a record of your income and expenditure. It will also require that we perform a credit check to ensure that your credit rating is adequate to carry the remortgage. An agreement in principle is not a binding offer, it only helps to show that all parties that you are serious about the application.

 

What is a credit rating?

Your credit rating is an estimate of your ability to fulfill your financial commitments. It helps mortgage providers and lenders decide whether to lend you money, how much they should lend you and what interest rate to charge. It is important to check your own credit rating regularly, so that you can know how well you are doing and to prepare yourself in case you need to apply for a financial product (loan or mortgage).

How does credit rating affect my remortgage application?

Your credit rating will influence our decision on whether or not to approve your remortgage application. If you have a poor credit rating, it can affect the success of your application.

How do I find out my credit rating?

You can find out your credit rating by contacting credit referencing agencies such as Equifax, CallCredit or Experian who will send you a credit report for a fee. However, if you are regular with your payments for everything from credit cards to electric and phone bills, then there is a good chance that you have a good credit rating.

Have more questions or need more information? At Remortgage Fast UK, advisers are always on hand to answer questions and help with inquiries.

Give us a call on 02380970979 or send us an email and someone will be available to walk you through the remortgage process.