Home > Property > Your Rights When Remortgaging

Your Rights When Remortgaging

By: Chris Nickson - Updated: 17 Sep 2012 | comments*Discuss
Consumer Rights Remortgaging Bank

Remortgaging is commonplace these days - in fact according to some reports, half the mortgages taken out in Britain are actually remortgages. Since the process can be as simple as switching your credit card, why not? There are plenty of low rates available it seems and it's an excellent way of getting your hands on some of the equity in your house.

What is a Remortgage?

Essentially, remortgaging is where you replace your current mortgage with a better one. It can mean spending less each month, getting money for home improvements or consolidating your debts and it's a great way of saving yourself money. The thing to remember is that your debt is secured by your house and you'll need to keep up your mortgage repayments or you could lose your home.

What to Do

The first step is to obtain a "redemption statement" from your current lender. This is where you'll find all the details about your mortgage.

You also need to read the small print on your present mortgage. That's where you'll find the details of any penalties you might have to pay for switching (as a hint, avoid any mortgages with extended redemption penalties).

With remortgages so common, a number of lenders have raised their fees for the closure of a mortgage, so you should also ask about fees first.

Selecting a New Mortgage

There are many options when looking around for a new mortgage. You can research online, using mortgage calculators. You can also use the services of a mortgage broker, but it is also advisable to do your own research.

After you've come up with a good deal, why not go back and talk to your current lender? They might be able to offer something that matches it and you won't need to pay any fees for switching. If they can't, go ahead and move your mortgage.

It's going to cost you some money to take out a new mortgage. You'll probably have to pay an application fee first. Then there's the application form to be filled out, with all the details about your income (the usual bank statements, payslips, proof of identity and so on). After that comes the home valuation, which will probably cost between £200 and £300. Finally, you'll have to pay an "arrangement fee," which runs to about £300 and the legal costs, which can add yet another £350 (although some lenders do offer remortgages with free legal work and valuations).

The process takes around a month. As long as the lender's surveyor is happy with the value and condition of your home, you'll get a "mortgage offer of advance." From there, things are done between the two lenders and all you have to do is wait for a completion statement, which will either come from your new lender or solicitor.

You might also like...
Share Your Story, Join the Discussion or Seek Advice..
Why not be the first to leave a comment for discussion, ask for advice or share your story...

If you'd like to ask a question one of our experts (workload permitting) or a helpful reader hopefully can help you... We also love comments and interesting stories

(never shown)
(never shown)
(never shown)
(never shown)
Enter word:
Latest Comments
  • Kath
    Re: What If Your Plumber Makes Mistakes?
    I have a completely new bathroom fitted and everything seems to be wrong and all the other bathroom companies who have…
    20 March 2019
  • Mws
    Re: Buying a New Car: Your Rights
    I’ve just found out that my jaguar is being recalled as the published emissions are significantly higher that advertised in real…
    18 March 2019
  • Jenny
    Re: A Guide to the Consumer Rights Act 2015
    We bought my platinum and diamond engagement ring in June 2018. We got engaged in January this year so I have only…
    14 March 2019
  • Sad lady
    Re: When Am I Not Entitled to a Refund?
    I bought a sofa that would easily fit into my room. I was given very basic measurements by the seller. I have a normal…
    12 March 2019
  • Shell
    Re: What If Your Plumber Makes Mistakes?
    We bought a new build 3 years ago and we have just had a leak coming through our living room ceiling. We contacted the…
    28 February 2019
  • Aga
    Re: The Fake EHIC Card Scam
    This happed also to me:/ I used just yesterday this scam service, wasn't sure maybe a some of the low about " free of charged" been…
    27 February 2019
  • Ido
    Re: The Fake EHIC Card Scam
    I have just been scammed. The website seemed official. They charged me 24.50 to renew. I only discovered today when I received the card…
    22 February 2019
  • Annetta
    Re: Buying a Used Car: Your Rights
    I bought a car in August last year after a week i discovered a faults garage offering to help but that was 4 hours away from him…
    20 February 2019
  • Nik
    Re: How to Complain
    Purchased oak coloured laminated flooring from retailer who fitted it over a large area. 7 years on the ends of some planks have faded at an angle,…
    20 February 2019
  • BigAl
    Re: The Fake EHIC Card Scam
    I too have been caught by this scan at the cost of £27.50. The website looks official and is clearly still up and running on the 14/02/19…
    19 February 2019