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Remortgaging: Advice and Costs

Updated: May 31, 2023

‘Content correct at time of publishing and subject to change’

We understand that remortgaging can be overwhelming and it’s a big decision that has financial repercussions. That’s why we’ve put together this blog so you have expert remortgaging advice.

How does remortgaging work?

Remortgaging is the process of removing your current mortgage on your home and replacing it with a new one. There are many reasons we remortgage our properties. For example, it might be possible to find a more affordable mortgage, helping you save money or you might want to remortgage to borrow money against your own property.

Why should you consider remortgaging?

One of the most common reasons others decide to remortgage is due to the fact initial mortgage rates tend to only be available for a limited time, often between two to five years. If your mortgage is about to end you will want to ensure that you can maintain the mortgage or make sure you look elsewhere for a more cost-effective choice, this is particularly important if your circumstances have changed since you first took out the mortgage and you now find yourself needing to remortgage with bad credit. The team at Twin Pine Mortgages can help you with this process.

If the value of your property has risen since you arranged your mortgage, you may find yourself in a more affordable loan to value band. If this is the case, you could be eligible for more affordable mortgage rates. In addition, if your circumstances have changed and you’re now able to pay more off and your current mortgage doesn’t allow you to do so then remortgaging is a suitable decision.

How much does remortgaging cost?

The cost of remortgaging your property depends on many factors. For example, the amount left to pay on your existing mortgage, your current monthly payments and your personal circumstances all can influence the cost of remortgaging.

You must consider:

  • Early repayment charge to your existing lender, this could cost up to 5% of your mortgage.

  • A deeds release fee to your current lender (this is not always applicable).

  • An arrangement fee.

  • A property valuation fee.

  • A conveyancing fee.

  • A broker fee.

Can you remortgage with the same lender?

The answer is yes. Using the same lender should save you time and if you need money quickly you would likely benefit from this. If you have a good history with your current lender they might be able to give you an affordable deal.

If you need any help or advice remortgaging your properties head over to our website and get in touch today.

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