Apply For A Remortgage

Applying for a remortgage has never been easier. The process is fast and relatively straight forward. Any Loans are able to help secure an instant decision in principle based on your circumstances so that you know where you stand from day one. After a careful review of your circumstances, needs and objectives they will endeavor to find the best solution with respect to your remortgage enquiry.

When you apply for a remortgage, the time taken to execute completion will differ from one application to another. The average timeframe that most borrowers face will usually be around six weeks – this will largely be dependent on the type of application you are making and also the amount of legal work that is required. Generally speaking, the time involved to complete the mortgage is a lot shorter than when you originally purchased your property – this is largely due to a huge reduction in the amount of legal work that is required (In most instances).

In many cases, the remortgage process will involve; a valuation to be carried out by an independent surveyor, a redemption statement/settlement figure to be requested from the existing first mortgagee and second mortgagee (if applicable), employment references to be requested (if applicable), including pay slips and P60.

Once all the relevant information and documentation has been gathered, the remortgage application will be submitted to the lender for a formal offer – It is also at this point where a solicitor or professional conveyancer will become involved to carry out the relevant legal searches and ultimately request the funds.

Many people will apply for a remortgage in order to achieve a more favourable rate of interest. This will often happen once their tie in period has come to an end; usually from a fixed, discounted or capped rate. Remortgaging can be an opportunity to reduce or extend the term of the loan, increase or reduce the mortgage balance. Remortgaging has become a popular method over the years for raising finance by using the available equity stored in the property.

When raising additional finance through a remortgage it is important to bear in mind that some lenders may permit borrowing of up to 90%, and even 95% of the property’s value. In many cases, where you are looking to borrow over 75% of the property’s value, most mortgage lenders in this case will apply a ‘Higher Lending Charge’.

The mortgage company may decide to purchase an insurance policy called a Mortgage Indemnity Guarantee (MIG) – This insurance policy protects the lender in the event of a property being taken into repossession and sold for less than the outstanding debt – a mortgage shortfall.

Although the borrower will foot the bill for this charge, it is solely for the benefit of the mortgage lender. Not every lender will purchase a MIG insurance policy from the proceeds of the higher lending charge - many will simply take the charge as a way of offsetting the potential risk. It is common for the lender to allow the higher lending charge to be added to the mortgage rather than expect the payment upfront.

Click Here to start your remortgage application.