This month at Hudson Rose, we’ve been focussing on remortgages and it occurred to me that sometimes the best thing is to go right back to basics. So today I wanted to explain what the term ‘remortgage’ actually means.
In its simplest terms, a remortgage is either changing your mortgage from one provider to another, or changing your mortgage rate with the same provider. So, a remortgage doesn’t necessarily mean you’re taking more money out. It doesn’t even need to mean that you’re moving to another provider.
You might come to the end of your current mortgage deal and your lender might turn around and say, “Oh, we love you. You’re a great customer. Have this mortgage rate. Would you like it?” The first thing you do is give someone like me a call so we can have a look at it and make sure you can’t do better elsewhere. But if you simply say, “Yeah, fantastic, great. We’ll crack on,” then you’ve remortgaged. That’s it. You don’t have to add anyone onto the mortgage or take someone off or borrow more, do anything fancy. It’s simply changing your mortgage deal.
It could be that you’ve come to the end of your existing product, your existing rate and you look around at the market and you speak to me and we go, “Oh, hang on. We can get you a better deal elsewhere.” And then what you do is you remortgage from the existing lender to the new one, and then you’re done.
Now, the good thing about remortgages is unlike buying a house, a remortgage is a bit more straightforward because there’s less legal work and usually no need for searches etc. I would say 99% of the time, we’d look to get you a free valuation with the mortgage so you haven’t got to pay a valuation fee, and really, it’s a lot smoother.
So, if you’ve had a bit of a nightmare time buying a house and you’re coming to the end of your product, you think, “Oh God, I’ve got to remortgage. I’ve got to do it again.” Don’t panic. It’s not that bad. Give me a call anyway or pop us an email and let’s start having a chat and we could talk through your options. Whether you’re self-employed, employed, limited company directors, makes no difference. We can do it all.