Remortgage
Many people re-mortgage and it represents the majority of applications and lending in most years.
A large amount of re-mortgage products in the market allow you to switch free of charge. This means that the typical valuation fee and any normal legal costs are often paid by the new lender.
Switching lenders is as common today as buying a pint of milk. Why do people do it! Well mainly to obtain a better interest rate than their current lender is prepared to offer them.
Many people look to raise additional capital to pay for home improvements or to pay off accumulated debts. Some want to raise money to purchase a second home or a buy-to-let investment property.
Whatever the reasons, reviewing your current mortgage product is a must. Peoples circumstances change and their views and outlook on life change which often mean their financial standing changes as well. Its not just about ensuring you achieve your objectives or goals but to maintain a mortgage product that is right for you at all times.
Typical fees and costs associated with a re-mortgage: –
| Valuation fee: | From free upwards dependent on value of property | |
| Solicitor fees & Disbursements: |
From free to £499 inclusive | |
| Things to note: | Adhoc services maybe charged separately. For example; buying out a spouse, partner or friend or them joining you on the title deeds. This is known as a ‘transfer of equity’ and as such comes under the stamp duty radar. Basically it is worked out as half of the debt (mortgage) and half of the equity added together. This total will then fall into one of the relevant brackets of stamp duty costs. | |
| A transfer of equity transaction will typically cost £175 and the solicitor will charge this separately even if the re-mortgage legal fees are free with the mortgage product. |
