Remortgaging is a popular way for homeowners in the UK to save money on their mortgage payments or release equity from their home. After submitting a remortgage application, many questions often arise regarding the process. In this blog, we will answer some frequently asked
questions about remortgaging in the UK after applying.
When Will My New Mortgage Payments Start?
Once your remortgage application has been approved, your new mortgage payments will typically start on the first day of the following month. For example, if your application is approved on June 15th, your new mortgage payments will start on July 1st.
How Long Will it Take to Complete the Remortgage Process?
The length of time it takes to complete the remortgage process can vary depending on the lender and your circumstances. On average, the process takes between 4-8 weeks from the time you submit your application. However, this may be longer if there are any valuation or legal process issues.
What Happens if My Property is Valued at Less Than Expected?
If your property is valued at less than expected, this may affect the amount of equity you can release or the interest rate on your new mortgage. If you are unable to release the amount of equity you were hoping for, you may need to reconsider your remortgage plans. Alternatively, you may be able to negotiate with your lender to secure a lower interest rate.
What Happens if I Change My Mind About Remortgaging?
If you change your mind about remortgage after submitting your application, you have a legal right to cancel the agreement within 14 days of receiving the mortgage offer. This is known as the cooling-off period. However, it’s important to note that if you cancel the agreement, you may be required to pay any fees associated with the application process.
Can I Overpay on My New Mortgage?
Many lenders allow you to overpay on your new mortgage, which can help you pay off your mortgage sooner and save money on interest payments. However, it’s important to check with your lender to see if there are any restrictions on overpayments, such as a minimum or maximum amount that can be overpaid.
What Happens if I Miss a Mortgage Payment?
If you miss a mortgage payment, you may be charged a late payment fee and may incur interest charges on the outstanding amount. Your credit score may also be negatively affected, making it difficult to secure credit in the future. If you struggle to make your mortgage payments, it’s important to speak to your lender as soon as possible to discuss alternative payment arrangements.
Can I Change the Term of My Mortgage?
Many lenders allow you to change the term of your mortgage when remortgaging. This can be a good option if you want to pay off your mortgage sooner or reduce your monthly payments. However, it’s important to note that changing the term of your mortgage may result in higher monthly payments or a longer-term overall.
Conclusion
Remortgaging can be a great way for homeowners in the UK to save money on their mortgage payments or release equity from their home. After submitting a remortgage application, many questions often arise regarding the process. By understanding the process and common FAQs, you can ensure that you make the best decisions for your financial situation. If you have any further questions, speaking to your lender or financial advisor is important.
Do you need advice on mortgages? Everest Mortgage Services will help you find a mortgage for your first home, secure a loan, and more. Get in touch with us.
