How does Remortgaging work?

Posted on September 19th, 2015

Remortgage

Remortgaging is where you pay off your existing mortgage and switch to another lender. Ideally you should look to remortgage before your product expires, as your initial rate will expire and you will revert to the lenders variable rate; such as:

Santander 4.74%
Halifax 3.99%
Leeds BS 5.69%
Nationwide 3.99%
RBS 4.00%
Virgin 4.79%
Woolwich 3.99%

Applicants will either remortgage to get a better rate (save money) or to borrow more and get a better rate at the same time. Others look to reduce the mortgage term, therefore saving on long term interest payments.

Whole of Market Mortgage Advice

Seek advice before going ahead with a remortgage as new products may come with arrangement fees, early repayment charges, solicitors costs. If you speak to one of our advisers, we will look to reduce fees and look for products with free basic legals and valuation.

When applying for a new product, the remortgage is based on a Loan to Value (how much you want to borrow against how much your property is worth). Applicants are offered better rates if there is more equity in the property.

There are good reasons why you might consider remortgaging – not least saving money. It’s important to receive advice and reassess your affordability. Ask yourself:

Can you reduce your mortgage term?
Can you reduce your rate and continue to pay the same using your over payment facility?
Is it the right time to fix rate for longer?

Note: Remortgaging to pay off short term debt can end up costing you more than other options.
Seek advice and speak to one of advisers. We can also arrange product transfers so you stay with the same lender (depends on the lender); and put you on a better product. We are based in Manchester city centre and will go through your options.


Mortgage Surveys- Which one?

Posted on September 5th, 2015

Mortgage Surveys- Which one?

Which Survey or Valuation do you go for? At the start of any mortgage application, the lender will require a minimum basic survey. This type of valuation is for lenders only and in some instances a copy of the report may not be forwarded to the applicants. The cost of a basic mortgage survey is dependent on the lender and purchase price. Some mortgage lenders offer free basic surveys.

Do you rely on a basic survey only?
Answer: No

You should consider an upgrade (with the mortgage lender) to a Homebuyers Survey; or carry an independent survey separately to a basic mortgage survey. Make sure independent surveyors carry the required qualifications.

Homebuyer’s Valuation

A homebuyers survey is a standard format set out by the ‘Royal Institution of Chartered Surveyors’ and is most suitable for properties built within the last 150 years and in generally sound condition.
The report can cost from £150-£500 and most mortgage lenders can arrange this type of report. The cost of the report depends on the mortgage lender and price of the property.
The applicants definitely gain a copy of the homebuyer’s report which should give a good indication of the state of property and its level of repair and maintenance.

Full Structural Reports

The most thorough of reports is a full structural inspection of the property. It is suitable for all properties especially listed buildings, older properties, buildings constructed in an unusual way, properties that are planned to alter or that have extensive alterations.
The report is approx. 20 pages and should on top include an inspection on gas, drainage and electrical systems.
It is common to instruct this report separately from the basic valuations. These types of reports usually cost from £400 to £1000.

Which one?

Buying a property is an expensive process with conveyancing, arrangement fees and deposits to factor in. It is natural for most applicants to keep their costs to the minimum and favour with a basic valuation. However spending a little more not only gives you peace in mind but also addresses immediate works to the property. If you dont know, you will when you move in and this in turn will cost you money. You will have the chance to negotiate for the property before completion which in itself pays for the survey report. If no works are required on the report, you will have peace in mind.

Tip

Speak to one of our advisers based in Manchester city centre. We will guide you through the process. We will advise you the most appropriate report considering the mortgage lender you go with. We will try and save you monies where we can.