Do I have to be a home owner to apply for a remortgage?
Yes. Even if you own a property jointly with someone else (such as a spouse or partner), a remortgage may still be a possible solution if the other person agrees to it.
How does the process of a remortgage work?
By remortgaging, you may be able to release some of the equity in your home (the difference between what your property is worth and how much you owe on your mortgage and other secured lending). It means increasing the amount you are borrowing either with your current mortgage lender or a new lender.
Individual mortgage lenders have different procedures for remortgages so this is a general guide.
If you are remortgaging with a new lender, they (or their solicitors) will:
- Write to your existing mortgage lender to confirm the outstanding balance on your existing mortgage.
- Check there is sufficient value in your property to pay off your existing mortgage and send you all the necessary legal documents for signature or arrange an appointment to see you.
- Repay, on your behalf, your existing mortgage.
- Send you, (or any agents appointed by you) a cheque for the difference between the new mortgage advance and the amount required to pay off your existing mortgage.
- You will also have to complete a new mortgage deed and discharge the mortgage deeds relating to any old mortgage that your new one repays. Your new mortgage lender will normally store your title deeds, including the new mortgage deed when registration is complete.
You should be aware that various fees may be payable if you remortgage your property including valuation fees, legal costs, redemption penalties and booking fees. Your lender should make you fully aware of these before you commit to a remortgage.
How long does a remortgage take?
A remortgage can normally be completed within 30 calendar days of the mortgage offer being made.
Will there be money left over after I have remortgaged and repaid my debts?
Whether there is money left after remortgaging and repaying your debts entirely depends on the current market value of your property and the amount you owe to your mortgage lender.
It is possible that there will be money left over and we suggest you seek independent financial advice if you find yourself in this situation.
Who will know about my remortgage?
No one (other than your existing and new mortgage lenders) need know about your remortgage, unless you have a joint mortgage or have a tenant. However, the deed in favour of your new lender will be registered in the Land Register, which is available for viewing by the public.
How do I contact you?
Take the first step to turning your debt around. By completing our online enquiry form, we will advise whether we can help you with a debt solution and arrange a time to contact you to talk through the options.