10 handy steps to remortgage

Any type of mortgage application can be stressful and confusing, which is why we have made this step-by-step guide to support and inform you throughout the remortgage process.

Remortgage Costs

Exit fees - Many mortgage providers include an exit fee in their mortgage terms and conditions. This is different to an early repayment charge and can often be several hundred pounds.

Application and product fees - You will usually have to pay an application or product fee of up to £2,000 to cover the administration costs of your new mortgage. This will add a considerable cost to moving your mortgage, so make sure you check exactly what fees you are paying and if there is any way that your new lender can reduce them.

Arrangement fees - Most lenders will charge an arrangement or booking fee when you apply. They may consider adding this to the overall loan, reducing upfront costs, but you will pay interest on this fee during the mortgage term.

Legal fees - For any purchase, you will need a solicitor to complete all the legal work. The price of this service can vary from company to company, on average these fees could cost between £500-750 +VAT.

Survey/valuation fee - All lenders will insist that a valuation is carried out on a property. This will only confirm the property value; it will not assess any potential problems or need for future repair or maintenance. Valuation fees typical cost between £150 and £1,500 depending on the value of the property and the level of survey you choose. If you had a homebuyers report or a full structural survey completed when you purchased your property then you may not need to have a full survey when you remortgage. We may charge a fee for our services which will be clearly explained before you agree to proceed.

10 steps to remortgage

1. Broker Consultation - We will go through your requirements and find the right remortgage for you. A European Standardised Information Sheet or Key Facts Illustration will be provided.
2. Protection - An essential not an extra, to ensure you are covered in the event of death, critical illness, or loss of income.
3. Decision in principle - Your chosen lender will make a decision based on your basic personal details. A full application will then be submitted to the lender.
4. Legal work - Either your lender will instruct a solicitor to act for you or you may use your own, usually insisting that they are on their approved list. The solicitor will have the full details of the property and the new loan required.
5. Valuation - Your home will be re-valued by a surveyor and the report submitted to the lender.
6. Formal offer - Once the checks have been completed a formal offer letter of remortgage will be issued.
7. Searches/questionnaire - The solicitor will then carry out searches and issue a questionnaire for you to complete. On completion and return of the questionnaire, you should provide details of your buildings and content policy.
8. Request of statement - A redemption statement requested by the solicitor to show the outstanding mortgage balance.
9. Payment - Additional payments will be paid to you via the requested method of payment.
10. Completion - The funds are transferred and your mortgage is complete.

For more information or to discuss the options available to you for your circumstances, please get in touch with our team of advisors.