Most people in the UK tend to fix their mortgage rates for an introductory deal which has an end date; quite often, people will settle for the easy option and choose a new rate from their current lender. However, shopping around for a new fixed rate may lead to a large saving.
The big question I’m being asked is: ‘Do I need a mortgage broker for a remortgage?’ so this blog will explain why using a mortgage broker could be a good move.
Remortgages are essentially moving from one product to another, either with the same lender or a different one and can happen for a variety of reasons:
- Fixed deal is expiring – avoid paying the lender’s standard variable rate (SVR)
- Extend mortgage term
- Extend mortgage amount
- Debt consolidation
- Home improvements
- Take advantage of lower interest rate
- Change in personal circumstances
- Save money
- Switch to an interest-only mortgage if needed
- Borrow additional funds on your property
What does the remortgage process with a broker look like?
The remortgaging process with a broker begins with an initial consultation to understand your current deal, financial circumstances, and goals (e.g., lowering interest rates, releasing equity, paying off debt). Recent mortgage statements, income proof, and details of your current mortgage will be needed.
A thorough search is conducted by the broker to find the potential mortgages that suit your needs. They will explain these mortgage options to you and advise on the best remortgage deal for you, either with your existing lender or with a new lender. The broker then handles the application process, including documentation and the submission to the lender. Lenders arrange a property valuation, and your broker takes care of the underwriting and ensures all requirements are met on your behalf.
Once a lender’s offer is issued, the broker reviews it with you. After you complete the new mortgage, they can provide ongoing support. Your new mortgage will be finalised, and the new lender will transfer funds to pay off the existing mortgage.
Do I need a solicitor to remortgage?
Using the same lender for a new deal usually doesn’t require a solicitor. However, if you switch to a new lender, or if your remortgage involves adding or removing someone from ownership, or if you are looking to borrow further funds, you will likely need a solicitor to handle the legal aspects of transferring the mortgage and to update ownership records.
Solicitors can advise you throughout the procedure and guarantee all legal aspects are properly managed, which can save time and ensure a smooth mortgage process. Mortgage lenders usually offer this service for free as part of the application.
The pros and cons of using a mortgage broker
Using a mortgage broker to secure a remortgage can be beneficial because brokers have extensive knowledge of the current market and are experts in evaluating which product is best, tailored to your needs. In addition, many lenders give brokers access to exclusive deals which are not available on the open market.
By searching the whole mortgage market, a broker can find the best mortgage offer for you. As you can imagine, researching can be time-consuming and the market is highly competitive so using a broker can significantly speed up the process.
On the other hand, using a broker might incur an additional arrangement fee for advice and mortgage application services – an important factor which would need to be accounted for when calculating the total cost of remortgaging. Mortgage broker fees can vary widely, so it’s a good idea to shop around.
Time is money as they say so using a broker will save you a lot of time, also most brokers will monitor the rate throughout the process to make sure you are always on the lowest rate which of course is the most important factor of the mortgage process.
Finally, it’s vital to trust the person you appoint as your mortgage broker. You need to have confidence that the advice you are receiving is unbiased and personalised to your specific circumstances.
Factors to consider when deciding if you need a mortgage broker for a remortgage
Your personal financial situation may be a consideration when deciding if you need a broker for your remortgage. If your financial and credit history isn’t exactly impeccable, then a mortgage advisor who specialises in products for those with poor scores could be a good investment.
Similarly, if your income and employment history make it challenging for you to easily remortgage with your bank, then ask a broker to find specialist lenders and products for you. If you are self-employed, this, again, may be challenging, so using a broker may yield the best outcome for you.
Another factor to consider when deciding whether you need to use a broker for remortgage advice is the personal time you have available to research the different lenders and options. If you are comfortable using the Internet to compare different lenders, products and their criteria, then you may be able to find an appropriate deal yourself.
If, however, you are busy or you don’t feel well equipped to correctly analyse the options, a mortgage broker can provide this service to you. Brokers keep up with the current trends in the industry so they can provide relevant, up-to-date information.
Knowledge acquisition is time-consuming, so you pay for this when you engage a mortgage specialist to help you locate the best deal.
How long does it take for a remortgage to go through?
The remortgage process typically takes 4 to 8 weeks. However, timelines can vary depending on the complexity of the case, the efficiency of the lender and solicitor, and your responsiveness in providing the necessary documents. To speed things up, be prepared with documents like payslips and bank statements beforehand.
Should you switch mortgage brokers to remortgage?
Switching mortgage brokers for a remortgage can be beneficial if you’re unhappy with your current broker’s service, need access to more mortgage products, or find new deals elsewhere.
However, if you have a good relationship with your current broker, they have successfully helped you before, and offer efficient service it might be best to stay with them.
Alternatives to using a mortgage broker for remortgaging
Many borrowers, when looking at remortgage financing, will start with their current lender as the first option. However, this may not provide the best product for their needs so it’s worth considering a broker vs. bank as your first port of call.
If you are looking for remortgage deals, you could seek suggestions from family and friends who have recently remortgaged, you could do your own research on the web. However, please be aware that this information can often be out of date or misleading, so tread carefully.
Remortgaging made easy
If you want to remortgage but you don’t know where to start looking for the right deal, contact our brokers at Simmonds Mortgage Services to let us take the strain out of your search.
Email info@simmondsmortgage.co.uk or call us on 01184 693037 for a free, no-obligation chat about your circumstances.
Connect with me and Daniel on Linkedin to find out more.
For even more benefits of a mortgage broker or to chat about business in general or other property and loan-related topics, check out our recent on why you need to be using a mortgage broker.
