We are receiving a peak in interest for people looking to re-mortgage during the current climate so, the team at Arrow Conveyancing have put together a guide to help make this process a bit easier for you!
Remortgaging is the process of paying off what you currently have left on your property's existing mortgage with a new mortgage. The benefits of re-mortgaging can be reducing your monthly payments, securing a better interest rate and shortening the time it will take to pay back. It can also be a good option if you want to borrow more to afford home improvements or pay off other more costly debts, such as credit card loans.
Act quickly in the current situation:
Do this now! Time is of the essence now due to the COVID-19 situation, with banks and lenders currently backlogged you need to act fast as applications will not be processed as quickly as they would generally be.
Do your research:
In this current mortgage climate where rates are low, this ensures a competitive rate and also safeguards against rolling onto a more expensive standard variable rate at the end of your mortgage term.
Property Value Assessment:
A correct valuation is also essential if you want to release any equity. However, with the current situation, this is very challenging (but not impossible) as people and valuers alike practice social distancing.
There are valuers that are doing this in innovative ways such as video calling over WhatsApp for "virtual tours" of properties to obtain the information they need to. We work directly with a lot of these innovative valuers across the UK so get in contact with us today, and we can point you in the right direction.
Get your paperwork prepared:
The process of re-mortgaging is almost exactly the same as getting a new mortgage. This means that there can be a lot of paperwork, so the quicker you can get all your documents together, the quicker the whole process will be. You will need ID, proof of address, proof of income and bank statements, while also undergoing the same affordability tests that are required when applying for a new mortgage. It's worth keeping all your documentation in a safe and easily accessible place when the time comes to start filling out forms.
One of the most important things to remember is to keep an open mind. Many people assume that a re-mortgage is as simple as choosing a new rate, but this isn't the case and it's worth asking a mortgage broker for advice. Remortgaging is a good way to reorganise your finances and you could be making greater short-term or long-term savings. If you want to check out our step-by-step re-mortgaging guide, click here.