A remortgage means changing from your existing mortgage deal to a new one without moving home. You can remortgage with your existing lender, but you may want to remortgage with a different lender instead if they offer a better rate of interest. You can also use a remortgage to release equity, for example to buy a second home, either for your holidays or as a buy-to-let property. Read our guide to remortgaging to learn more.
A further advance is when you borrow an additional sum of money, usually at a rate of interest different to your mortgage deal. Sometimes this will be on a deal with no repayment restrictions, meaning that once your main mortgage comes to an end, you can join both pots of borrowing together and remortgage onto one single product.
When comparing remortgage deals, you should look at the total amount you'll pay over the deal period. Above you can see an example for an 80% LTV mortgage, on a repayment basis over a two-year fixed deal. While option one has the lowest initial interest rate, the fee makes this more expensive. The best remortgage deal in the example above is option two, which is 634 cheaper than option three, the most expensive.
Yes, you should allow at least two months before your current deal expires, if not more, to give you time to search for a remortgage deal and find one that meets your needs. If you leave it too late you could find your mortgage reverts to a higher rate of interest that will increase your monthly mortgage payment.
You will also have the security on a fixed interest rate mortgage that your payment will stay the same each month. Therefore securing the best remortgage deal will give you this interest rate secured. On a lenders standard variable rate your payment can change at any point.
The main benefit of remortgaging is to secure a new interest rate. This ensures your monthly payment is paying off as much of your mortgage as possible rather than going on interest. By looking for the best remortgage deal you will avoid going onto the lenders standard variable rate.
Speaking to a mortgage broker such as Willow Brook Mortgages, gives you access to over 100 lenders and some exclusive products as well. Your advisor will discuss everything with you so that you fully understand your options and apply for the best product. Using a mortgage broker benefits you a lot more than going to your current lender or bank, as they would only have access to the deals they can offer and cannot tell you how this compares to the market.
If you are looking to remortgage and you are self employed, you will need to provide your last 2-3 years tax returns or accounts. You can access these online at HMRC or if you use an accountant they will be able to provide them to you.
The last factor is the full term of the mortgage. This is when your full mortgage is due to be repaid. It is common for a mortgage to start at 30/35 years or up until your planned retirement age. When you remortgage it is a good time to re-assess this as well.
To get the best mortgage deal, you need to compare rates and get your calculator ready to do some sums. You can search online for the best remortgage rates using a price comparison website, such as our sister brand Go.Compare (opens in new tab).
For example, if your house is valued at 200,000 and you need to borrow 150,000, this means you have a deposit/equity of 50,000 (25%) and you can apply for remortgage deals with a maximum LTV of 75%. The higher the proportion of equity you have in your home, the cheaper your rate will be.
Refinancing your mortgage is one way to improve your financial position, but for the move to make sense, you need to find the right lender. The best refinance companies will offer competitive interest rates, a smooth application process and a variety of loan options to choose from.
Why we chose it: We chose Zillow as the best mortgage refinancing marketplace for its ability to connect homeowners with a variety of licensed lenders throughout the country, and its array of tools that help guide the process.
Why we chose it: We chose Navy Federal as the best mortgage refinance credit union because of its fast online pre-approval process, choice of loan terms and benefits for borrowers who are also selling.
Why we chose it: We chose Bank of America as the best mortgage refinance company for member discounts. Its Preferred Rewards program offers significant price reductions on purchase and refinance closing costs.
A recent LendingTree study found nearly half of the mortgage borrowers who compared rates saved money. Contact at least three to five lenders and compare loan estimates on the same day (rates change daily) to collect the best mortgage deals from each one. Compare loan closing costs and interest rates, and haggle for the best deal. Try a rate comparison site to have lenders call and compete for your business.
Comparing the best mortgage lenders can help you find a home loan with a competitive rate and term. Many of these lenders offer home loans with flexible down payment and income requirements that can benefit homebuyers who struggle to qualify for a traditional mortgage.
Bank of America is the best overall option for many existing homeowners and first-time homebuyers since they offer many fixed-rate, low-down-payment, and government-backed home loans. Doctor loans are also available for medical professionals with a high student loan balance.
Our expert writers and editors have reviewed and researched 14 popular lenders to help you find the best mortgage. Out of all the lenders considered, the seven that made our list excelled in areas across the following categories (with weightings): loan cost (30%), eligibility and accessibility (20%), customer service (20%) and ease of application (30%).
This compares to the best rate at the start of March 2023 when the best mortgage rates on a 5 year fix was from Coventry Building Society at 3.96%. While the best mortgage rate on a 5 year fix in February 2023 was an exclusive deal from L&C at 4.15%.
The best mortgage rates available to you will depend on factors including whether you take out a fixed or variable rate mortgage, how long your deal will last and your LTV. But at the start of April 2023 the best mortgage rates on a 2 year fix is from Lloyds Bank at 4.26%.
While we have seen some of the cheapest mortgage deals disappear from the market over the last few months, there are still some good rates available. But if you want to remortgage, you should act quickly to grab deals before they disappear.
L&C can compare the latest mortgage deals for you over the phone, or you can do it yourself in real-time online. Whichever you choose they can help search the market to find you the best mortgage deal, see if you qualify and even help you apply online, doing all the legwork to get you your mortgage offer.
We examined over two dozen mortgage lenders. In picking the best of the best, we looked for lenders that satisfied our methodology criteria and had offerings to meet the needs of a wide variety of borrowers. Some of the ones that didn't make our list had weaknesses like having limited loan options or ranking low in customer satisfaction.
The annual survey and awards program was designed to identify, recognize, and honor the best employers in the U.S. mortgage industry. The program was created by National Mortgage News and Best Companies Group.
With offices in London, Hertfordshire, and Northampton, Bishopsgate Law are our best-rated remortgage solicitor. A partner since 2018, Bishopsgate Law can also help with your sale and purchase of a property as well as carrying out the legal process for your remortgage 59ce067264