This remortgage guide is broken into two parts. First, the short answer which will quickly help you decide whether to fix your mortgage, how long for and secure you the best fixed-rate mortgage deal. The longer answer will explain in detail:
- Why you should consider fixing your mortgage now
- When interest rates are likely to rise
- How long you should fix your mortgage for (2, 3, 5 or 10 years)
- How to find the best fixed-rate mortgage deal
The short answer: interest rates and remortgaging
According to the Bank of England (BOE), the annual rate of inflation peaked at the end of 2022, driven mainly by energy and food price rises. It currently stands at 10.5%. When inflation is above the BOE's target rate of 2% then it will look to raise interest rates to try and bring inflation back under control. The Bank of England has been increasing interest rates since December 2021, with its most recent rise being in February 2023 when the base rate went up from 3.5% to 4%, the highest level since 2008. Nonetheless inflation is still high, making more interest rate rises possible.
This has serious implications for the mortgage market, which may start to price in further future rises. This means higher mortgage rates. The market is currently pricing in further interest rate rises totalling more than 0.4% in the next six months (taking the BOE base rate to 4.4%), so pushing the monthly repayment on a typical 25 year mortgage (that isn't on a fixed rate) up by £20 per £100,000 borrowed. That means on a £200,000 variable rate or tracker mortgage your monthly repayment could go up by £40 a month if you don't fix beforehand. The message is, if you are in a position to remortgage, it may pay to act sooner rather than later to secure the best fixed-rate deal, if you want to avoid your mortgage repayments potentially rising further in the future, as the best deals are being pulled by lenders at an increasing rate. I explain how to do this in the section titled "Get a free mortgage review now".
Fixed-rate mortgages
If you have a fixed-rate mortgage then your mortgage repayments won't change as a result of interest-rate changes. During the initial introductory period, you are guaranteed to pay the same amount every month, which means you won't benefit from rate cuts but also won't be hit if interest rates begin to rise again.
With a fixed-rate mortgage it's a good idea to check when your deal runs out and if there is an early repayment charge if you end the deal before the fixed term comes to an end. If you can get a new mortgage deal at a substantially lower rate than you are currently paying, you may be able to save money by switching, particularly if there are low - or no - early repayment charges.
More importantly, if your fixed-rate deal is due to finish in the next six months it is possible to arrange a new mortgage deal that will start when your existing fixed deal comes to an end. That way you can lock in a cheap rate now, before mortgage rates rise in the coming months, and avoid paying an early repayment charge at the same time.
For more information on fixed-rate mortgages, check out our article "What is a fixed-rate mortgage? Everything you need to know".
Tracker mortgages
As a tracker mortgage typically goes up and down in line with the BOE base rate, borrowers with this type of deal would have benefitted from the interest-rate cuts in 2020. However, the decision now on whether to remortgage will largely be determined by what you think is going to happen to interest rates in the future. If you believe rates are going to stay at their current levels for an extended period, it makes sense to stay with your current deal. If, however, you anticipate rates will continue to go up it could pay to fix now while you can still get a competitive fixed-rate deal.
Our article "What is a tracker mortgage and is it right for you?" has more details on tracker mortgages.
Are interest rates likely to rise?
Whatever deal you have, one thing is certain when it comes to interest rates: they have been rising in recent months and are likely to continue to do so. In fact the Bank of England has raised interest rates 10 times since December 2021 and the base rate now sits at 4%. With high inflation proving problematic investment markets are predicting the Bank of England will raise the base rate to around 4.4% by July 2023, as shown in the chart below (click to enlarge). That would mean the typical monthly repayment on a 25 year mortgage that isn't fixed will rise by another £20 per month for every £100,000 borrowed.
Historically the norm for the base rate has been around the 5% mark. For the latest view on when interest rates might rise or fall, read the latest interest rate predictions. The article is continually updated and reveals when the market predicts interest rates will rise and how high they will go.
Get a free mortgage review now
Whichever type of mortgage you are on, it is a good time to consider fixing your mortgage (or arranging a new one to start when your existing deal ends), before further base rate hikes come into force should they occur. Don't make the mistake of waiting for the Bank of England to raise interest rates again before making your decision because, by that point, the best remaining fixed-rate mortgage deals will have gone.
The simplest trouble-free route to make a decision, which I'd recommend, is to seek the help of a mortgage adviser. If you don't know a mortgage adviser whose opinion you trust then there are two ways to find a reputable one:
1) Use a leading online mortgage broker
You can have your mortgage reviewed for free online through Habito*, one of the first online mortgage brokers in the UK. I've personally been into Habito's* offices to grill them over their proposition and recommendation process and was impressed. Habito will check through over 20,000 mortgages from more than 90 mortgage lenders for you before making a recommendation. That recommendation may even be that your existing lender offers the best deal and you should stay where you are. They will also help you decide whether a new fixed-rate mortgage is right for you.
The whole process can be carried out online (without the need for face-to-face meetings). Habito has a 4.8 (out of 5) star rating on Trustpilot from over 7,800 customer reviews who it has helped save hundreds of pounds a month. It only takes 10-15 mins to register online and Habito will be able to give you instant, free mortgage advice.
To get started:
- Click the link - Habito mortgage review* and then click 'Get started'
- Create your account either by entering your email address and setting up a secure password or by linking your Facebook or Google account
- Enter your details
- Once completed you will be put in touch with your own personal mortgage specialist who will guide you through the process from start to finish
2) Get a mortgage review using an offline specialist
Alternatively, you can request a free mortgage review* from a vetted FCA-regulated mortgage professional. It is the more traditional (offline) route but we regularly check the experience consumers receive to ensure that it is of the best quality, with no obligation on their part and that the savings are genuine.Typically the free remortgage checksaves peoplearound £80 per month per £100,0000 of mortgage. To get started
- Click the linkfree mortgage review*
- Answer the four multiple choice questions about your situation
- Enter your email etc
- Then select the "Review my Mortgage" button
The long answer: should I fix my mortgage?
Why fix your mortgage rate?
At the heart of the ‘should you fix your mortgage’ question is a worry that interest rates will continue heading higher. The attraction of fixing your mortgage rate is the certainty it brings to your mortgage monthly repayments. The interest rate on a fixed-rate mortgage is fixed for a specific period of time and will remain at this rate regardless of changes to the interest rate in the marketplace. Once the fixed period expires then the rate will normally convert to the lender's standard variable rate (SVR), or another fixed rate if available. Lenders frequently charge a fee - early repayment charge - if a borrower wishes to terminate or switch to another deal within the fixed term.
People who are currently paying their lender’s SVR are vulnerable to interest rate rises. If interest rates go up then so will their monthly mortgage payments. Similarly, tracker and variable rate mortgages have interest rates which reference the Bank of England base rate, currently at 4%. However, while tracker mortgages will move in step with the base rate lenders can often move their standard variable rates with no defined link to the base rate.
So, if you are on the lender’s default SVR, which around 70% of mortgage borrowers now are, then check the terms and conditions. Some lenders have SVRs which will always be at a maximum of, say, 2% above the BOE base rate.
Is now the best time to fix your mortgage?
As interest rates are rising, there is growing demand for fixed-rate deals as buyers and those remortgaging want to secure a competitive rate. The trouble is that mortgage lenders will have limited availability on each mortgage deal. When they hit their target they will no longer accept any new borrowers. This has a knock-on effect to other lenders and the rates on even the cheapest fixed-rate mortgage will rise. So when consumers inevitably all rush to fix their mortgages as lenders introduce new and improved rates then all the best deals will quickly evaporate. In September 2022 more than 40% of mortgage deals were pulled by lenders, many of them within 24 hours of being launched. So if you are contemplating fixing your mortgage rate before a future rate rise, it's prudent to take action now rather than later.
How long should I fix my mortgage for - 2, 3, 5, 10 years - or longer?
If you have a low loan-to-value (the size of your mortgage as a percentage of your property value) then you could almost certainly benefit from fixing, as you will be able to secure a low fixed-interest rate.
The longer your fixed term, the longer you are locked into a lower interest rate. Although there is no limit to how many times you can remortgage if you opt for a long fixed-term period you may have exit penalties and early redemption fees if you want to repay your mortgage or move. In addition, if the BOE base rate is cut (albeit that is extremely unlikely right now) you won't benefit either. These factors have to be traded off against the cost of exiting your current deal (which forms part of the overall cost of remortgaging) and the certainty that a fixed-term mortgage provides.
A recent development in the market has been the introduction of longer-term fixed-rate mortgage deals, including a 40-year fixed-rate from Kensington Mortgages. These attract a higher rate, but give certainty over the amount you will have to pay over the long term. It also removes the cost and effort of having to remortgage every few years. There are more details in our article "Which are the best long-term fixed rates mortgages - and should you get one?"
So when is it worth remortgaging?
If your SVR is low (say around 4%) and you have little or no equity in your property, you may be better off sticking with your existing deal for the time being. In some cases you won’t have a choice if your LTV is too high or you are in negative equity. Yet for most people, the tide has turned and we are now at the point where it is worth considering remortgaging and/or fixing their mortgage rate.
Should I get a variable or fixed-rate mortgage?
While I've highlighted the pros and cons of fixing your mortgage the alternative is to deliberately choose a variable rate mortgage. With a fixed-rate mortgage your interest rate is fixed for, say, 2 years and when your fixed-rate period ends you move on to the lender's higher SVR. If you took out a variable rate mortgage, rather than a fixed-rate mortgage, then the interest rate would typically rise and fall at the whim of the lender throughout the lifetime of the mortgage. However, you could initially benefit from a lower mortgage rate, depending on the individual deal.
How to find the best fixed-rate mortgage
Most consumers will wrongly assume that using a price comparison site is the best thing to do when looking to remortgage. However, bear in mind:
- many mortgage deals are only available viamortgage advisers so don't appear onprice comparison sites
- not everyone can get the rates quoted on price comparison sites
- price comparison sites don't take into account your credit rating or personal circumstances which will determinewhether a lender will actually lend to you. For example, you may not be eligible for the deals quoted by comparison sites and won't find out until they credit check you. That in itself will then hinder future mortgage applications
- there may be options open to you other than fixing your mortgage, such as a capped mortgage.
That is why you are almost always better off seeking advice from an independent mortgage adviser rather than going it alone. Which is why most borrowers now use a mortgage advisertofind the best deal from a lender who will actuallylend to them.
Itherefore recommend that you arrange a free mortgage review* by an FCA-regulated mortgage adviser. Simply click on the link and answer the four questions about your situation and the highest-rated mortgage adviser near you will get in touch and inform you if it is possible for you to remortgage and how much you can save. Typically readers save around £80 a month for every £100,000 of their mortgage when they reduce their mortgage rate by just 1%.
How to research the best mortgage deals yourself
Alternatively, if you do want to go it alone the first thing you need to work out is what fixed rate you will get. This will depend on, among other things, the amount you want to borrow compared to the value of your property (LTV), your credit rating, your earnings and the type of mortgage you want.
A good starting point is our mortgage calculator, powered by Habito. This can give you an idea of the best and cheapest deals you may be eligible for.
One trick to keep your mortgage options open
If you want to fix your mortgage rate (or remortgage on to a new fixed deal) but are unsure whether to do it now or later, you could hedge your bets by getting a mortgage offer in place now and not completing for, say, 6 months. That way you have a good fixed-rate deal ready to go and can still take advantage of your current low rate for a few more months. Obviously, you must bear in mind that you will likely incur non-refundable valuation charges, whether or not you actually decide to complete in the end, and the lender could technically withdraw their offer before you accept. But these are risks that you would face even if you fixed now. The other benefit is that if a better deal becomes available while you are waiting for your new deal to start you could technically decide to cancel that and remortgage elsewhere, but you will likely incur the aforementioned charges from the previously secured lender and possibly your mortgage broker plus you'd likely require new credit checks.
If a link has an * beside it this means that it is an affiliated link. If you go via the link, Money to the Masses may receive a small fee which helps keep Money to the Masses free to use. The following link can be used if you do not wish to help Money to the Masses or take advantage of any exclusive offers - Habito, Vouchedfor
FAQs
How long does it take to fix a remortgage? ›
You can fix your mortgage between one and ten years. The most popular options are two-year or five-year fixed-terms. A longer fixed-rate deal may seem like a no-brainer at first, but wait! There are reasons to choose a shorter fixed term on your mortgage.
Should I change to fixed rate now? ›If you're concerned about future payments and your budget, it's likely worth it to lock in now. The benefits of knowing exactly what your monthly payments are for the next five years with a fixed-rate mortgage can trump any savings you may get from a variable one.
Is it best to get a 2 year or 5 year fixed mortgage? ›2-year fixed mortgages often benefit from a lower interest rate, but the 5-year fixed mortgage rates offer you more long-term financial stability, as you're locked into the fixed deal for longer.
What to do if your mortgage runs out next year? ›When your fixed rate mortgage ends, you have several options with your mortgage moving forward. You can move onto your current lender's standard variable rate (SVR), switch to a new mortgage deal with your mortgage provider, or remortgage with a new mortgage lender.
Why is my remortgage taking so long? ›The new lender still needs to be certain about your finances, your affordability and the property. It will be subject to a full underwriting and valuation process, and this is what usually takes the most time.
Why does remortgaging take so long? ›Why does remortgaging take so long? If you choose not to do a product transfer, opting instead to remortgage to a new lender in order to access a better deal, it is essentially a brand new mortgage application. For this reason, it takes roughly the same amount of time as your original mortgage application.
Will interest rates go back down in 2023? ›Will mortgage interest rates go down in 2023? If the historically high inflation of 2022 continues to dissipate and the economy falls into a recession, it's likely mortgage rates will decrease in 2023.
Will my mortgage go up if I'm on a fixed rate? ›Fixed rate mortgages
Nothing will change if you're on a fixed rate mortgage. Your interest rate and monthly payments are fixed until the end of your deal period.
It's true that your mortgage payment can go up. You may be surprised to learn this, especially if you have a fixed-rate mortgage. But the truth is, it's possible for your monthly mortgage payment amount to fluctuate several times throughout the term of the loan.
Will mortgage rates go down in 2024? ›These organizations predict that mortgage rates will decline through the first quarter of 2024. Fannie Mae, Mortgage Bankers Association and National Association of Realtors expect mortgage rates to drop through the first quarter of 2024, by half a percentage point to about nine-tenths of a percentage point.
What is the current interest rate? ›
Today's national mortgage interest rate trends
If you're looking to refinance, today's current average 30-year refinance interest rate is 6.88%, falling 15 basis points over the last seven days.
Dave believes the shortest path to wealth is to avoid debt. And he says the best way to do that is to either buy a house with cash or go with a 15-year mortgage, which has the overall lowest total cost—and keeps borrowers on track to pay off their house fast.
How much will I pay when my fixed rate mortgage ends? ›If you do nothing when the fixed-rate period on your mortgage ends, you'll be automatically switched to your mortgage provider's standard variable rate, or SVR. This is your mortgage provider's 'default' rate. And, as the name suggests, it's variable, which means it can change from time to time.
How long does the average homeowner keep their mortgage? ›The average mortgage term is 30 years, but that doesn't mean you have to get a 30-year loan – or take 30 years to pay it off. While it offers a relatively low monthly payment, this term will likely require you to pay the most in total interest if you keep it for 30 years.
Is it better to pay lump sum off mortgage or extra monthly? ›Pay a lump sum toward the principal balance
Making a lump sum payment toward your mortgage will decrease what you owe and save money on interest. If you receive some sort of windfall, such as an inheritance or a large tax refund, you can also consider making a lump sum payment toward your mortgage.
Your current deal is about to end.
If so, you want to be ready to remortgage to a competitive rate. Start looking around three to six months before your rate ends, so as to avoid delays that result in you being stuck on your lender's SVR.
Your current lender already has your details on file, so the process should be quicker. A full remortgage with a new lender can take weeks or even months, but with your current lender it can take as little as a few days.
How many times can you remortgage? ›There's no limit on the number of times you can remortgage your home, but most people do it when their fixed-rate period ends. Whether you decide to remortgage early or at the end of the fixed-rate, it's vital that you have all the details so you can make an informed decision about remortgaging.
What is the downside of remortgaging? ›There are some drawbacks to a remortgage as well, which include: Stretching your debts to a longer time frame increases the overall cost. When your home is used as collateral, it can be repossessed if you cannot keep up with the payments.
How long does it take for remortgage funds to be released? ›After receiving the mortgage offer, the remortgage typically takes around 3-6 weeks to remortgage completion. During this time, the legal work is carried out, and the funds are transferred between your current mortgage provider and the new mortgage lender.
Can you borrow more after remortgaging? ›
Remortgage. Remortgaging is when you switch your mortgage debt to a new mortgage deal, either with your existing lender or a new lender. When you remortgage, you can also borrow more money at the same time by increasing your mortgage loan.
How high will mortgage interest rates go in 2023? ›Mortgage Bankers Association (MBA).
“Long-term rates have already peaked. We expect that 30-year mortgage rates will end 2023 at 5.2%.”
So far in 2023, the Fed raised rates 0.25 percentage points twice. If they hike rates at the May meeting, it is likely to be another 0.25% jump, meaning interest rates will have increased by 0.75% in 2023, up to 5.25%.
How high will bank interest rates go in 2023? ›With rising federal funds rates comes an increase in savings interest rates. Federal Reserve Board members and Federal Reserve Bank presidents predict the federal funds rate will reach between 3.9% and 4.9% in 2023.
Is it better to switch to fixed-rate mortgage? ›As mentioned previously, these days, many fixed rate mortgages are lower than their variable counterparts, so you might be saving by switching. It typically only makes sense to switch to a fixed rate if you expect interest rates to continue increasing in the future, and you want to lock in a lower rate while you can.
Where are interest rates going in the next 5 years? ›The predictions made by the various analysts and banks provide insight into what the financial markets anticipate for interest rates over the next few years. Based on recent data, Trading Economics predicts a rise to 5% in 2023 before falling back down to 4.25% in 2024 and 3.25% in 2025.
What happens if I pay an extra $200 a month on my mortgage? ›If you pay $200 extra a month towards principal, you can cut your loan term by more than 8 years and reduce the interest paid by more than $44,000. Another way to pay down your mortgage in less time is to make half-monthly payments every 2 weeks, instead of 1 full monthly payment.
What happens if I pay an extra $300 a month on my mortgage? ›You decide to make an additional $300 payment toward principal every month to pay off your home faster. By adding $300 to your monthly payment, you'll save just over $64,000 in interest and pay off your home over 11 years sooner.
Will mortgage rates ever go low again? ›The average interest rate for the benchmark 30-year fixed mortgage reached 7.08%, as of Monday. However, with the economy expected to cool and possibly dip into a recession, many recent forecasts expect rates to drop to 6% or below in 2024, including a Fannie Mae projection of 5.2%.
What are mortgage rates for 2023 and 2024? ›The Fed penciled in a 5-5.25 percent peak interest rate for 2023, after which officials see rates falling to 4.25-4.5 percent by the end of 2024.
Where will home mortgage rates be in 2023? ›
While it expects the Fed to continue increasing rates to tame inflation, it believes that long-term rates have already peaked. “We expect that 30-year mortgage rates will end 2023 at 5.2%,” the organization noted in its forecast commentary. It reiterated the fourth-quarter 5.2% rate prediction in a Jan. 19 forecast.
What is the mortgage outlook for 2024? ›In the longer term, Savills expects house prices to grow by 1% in 2024, followed by a larger increase of 7% in 2026 if mortgage lenders cut rates over the next 12 months and the base rate declines from mid-2024 as inflation falls.
How high will rates go? ›Rates will keep rising in 2023
In December, the FOMC projected that the median Federal Funds Rate (FFR) in 2023 would be 4.6 percent. This projection was revised in March, with the FOMC projecting the FRR to hoover between 5.1 and 5.6 percent in 2021.
Currently, a 4% mortgage rate would be considered low. If that question was asked at the beginning of 2022—when 30-year mortgage rates for conforming loans was 3.77%–instead of the end of 2022—when the same mortgage rates were 7.06%—the answer would have been, yes, a 4% mortgage rate is high.
What is the lowest mortgage rate in history? ›While the lowest interest rate for a mortgage in history came in 2020-2021, the lowest annual mortgage rate on record was in 2016, when the typical mortgage was priced at 3.65%. This means that for a mortgage of $200,000, and a rate of 3.65%, the average monthly cost for principal and interest was $915.
Is it better to get a 30-year loan and pay it off in 15 years? ›People with a 15-year term pay more per month than those with a 30-year term. In exchange, they are given a lower interest rate. This means that borrowers with a 15-year term pay their debt in half the time and possibly save thousands of dollars over the life of their mortgage.
How to pay off a 30-year mortgage in 15 years? ›- Pay extra each month.
- Bi-weekly payments instead of monthly payments.
- Making one additional monthly payment each year.
- Refinance with a shorter-term mortgage.
- Recast your mortgage.
- Loan modification.
- Pay off other debts.
- Downsize.
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Should I remortgage before fixed rate ends? ›When is the best time to remortgage? Ideally, you should start planning to remortgage around six months before your fixed rate period ends. Acting early can also help you avoid extra payments.
What happens if your house goes up in value? ›Short-term benefits of a higher property value
When your home's value rises, the loan becomes less risky to the lender because its loan-to-value ratio decreases.
How long does the average person stay in the same house? ›
47% of Americans have lived in their homes for six to 10 years. 35% of homeowners have lived in their homes for 10 to 15 years. 16% have lived in their homes for less than five years. The average length of homeownership years is eight years.
How old is the average homeowner? ›And are these the factors Americans should consider when deciding to become a homeowner for the first time? In 2022, the average age of first-time homebuyers was 36, according to the National Association of Realtors (NAR). This is up from 33 in 2021.
What is the longest year for a mortgage? ›Traditionally, mortgages come in loans anywhere between 8 – 30 years. In some cases, 40-year loans may have other features. For example, there might be interest-only periods for a certain timeframe at the beginning of the loan before switching to payments of principal and interest for the remainder of the term.
What does Dave Ramsey say about paying off your mortgage? ›The Dave Ramsey mortgage plan encourages homeowners to aggressively pay off their mortgages early, however. One recommendation Ramsey makes is to convert your 30-year mortgage into a fixed-rate, 15-year home loan. Not only will you pay off a 15-year mortgage in half the time, but you'll also pay much less in interest.
How can I lower my monthly mortgage payment without refinancing? ›- Cancel your mortgage insurance. ...
- Request a loan modification. ...
- Lower your property taxes or homeowners insurance. ...
- Recast your mortgage. ...
- Make one extra payment per year. ...
- Round up your mortgage payment each month. ...
- Enter a bi-weekly mortgage payment plan.
The 10/15 rule
If you can manage to pay 10% of your mortgage payment every week (in addition to your usual monthly payment) and apply it to the principal of your loan, you can pay off your 30-year mortgage in just 15 years. * Points are equal to 1% of the loan amount and lower the interest rate.
Your current lender already has your details on file, so the process should be quicker. A full remortgage with a new lender can take weeks or even months, but with your current lender it can take as little as a few days.
How long does it take to remortgage with the same lender? ›How long does it take to remortgage with the same lender? It can typically take around two months to get a remortgage approved as you need to go through mortgage interviews and wait for underwriters to consider your application.
How hard is it to remortgage? ›A remortgage with bad credit can be difficult. This is because most lenders require applicants to have good credit when switching mortgages. Lenders will check if you're eligible for a mortgage but having bad credit can make your application complex.
What is the minimum time for remortgage? ›The average time a remortgage takes is 8 weeks. The shortest amount of time it takes to complete a remortgage is 4 weeks. The more organised you are with your paperwork the quicker the remortgage will be.
Does your mortgage go up when you remortgage? ›
It's likely that if you remortgage to release equity then the size of your debt and monthly payments would likely increase. This means that your interest rate could also be higher. The higher the loan-to-value (LTV), the higher the mortgage interest rate tends to be.
Do your mortgage payments go up when you remortgage? ›A remortgage is when you move your mortgage to a new deal with another lender, or move to a different deal with your current lender. Switching to a new interest rate with your current lender is known as a product transfer, and not much will change other than the amount you repay each month.
Is remortgaging with same bank easy? ›Is it easier to remortgage with the same lender? Yes, it's often quicker and easier to remortgage with the same lender than to switch to a mortgage offered by another bank or building society. As the lender has already approved a loan secured against your home, you shouldn't need it formally valued again.
What are the advantages of remortgaging with the same lender? ›Advantages of remortgaging with the same lender
For example, when you remortgage with the same lender, a credit check may not be necessary if you aren't looking to borrow any extra funds or change anything on the mortgage except for the deal.
How much can you remortgage your property for? Many lenders would consider lending up to 90% loan to value. Many will limit you to 80% or 85% LTV if you are capital raising for certain reasons such as debt consolidation or home improvements. Your income must be adequate to fund the entire mortgage.
What do they check when you remortgage? ›The lender will want to see how you're coping with your monthly mortgage payments the kind of impact it has on your outgoings in general, and what percentage of your income it is. They may also look at how much of your home you have so far paid off.
Do your payments go down when you remortgage? ›You want to overpay & your lender won't let you.
A remortgage will allow you to reduce the loan size and potentially get a cheaper rate as a result. But watch out for any early repayment charges or exit fees you face, and compare this to how much you'd save with the new, lower mortgage.
The 6 month mortgage rule is an area of lending criteria imposed by the CML (Council of Mortgage Lenders) with the intention of stopping you from remortgaging a property within 6 months of purchase. The 6 month mortgage rule also applies to purchases of a property that the vendor has owned for less than 6 months.
What questions to ask when remortgaging? ›- What is a remortgage? ...
- Is it a good time to remortgage? ...
- Are there fees involved when remortgaging? ...
- Should I consolidate my debts? ...
- How much equity do I need in my property? ...
- Do I have a good credit history? ...
- What type of mortgage do I want? ...
- How do I remortgage my home?