If you’re a homeowner considering your mortgage options, you might be thinking about remortgaging.
Remortgaging can offer several benefits, such as potentially lower interest rates or releasing equity from your home. However, the process benefits from careful preparation, particularly when it comes to gathering the necessary documents.
This article will guide you through what you need to know and what documents are needed to ensure a smooth remortgaging process. What documents do I need to remortgage? read on to find out.
Understanding remortgaging
Before going into the specifics of the documents required, let’s first understand what remortgaging is.
Remortgaging involves switching your current mortgage to a new deal, with a new lender.
Homeowners often choose to remortgage for various reasons, such as securing a better interest rate, consolidating debts, or releasing equity to fund home improvements or other significant expenses.
The remortgaging process
The remortgaging process can seem confusing if you haven’t done it before.
How long does it take to remortgage?
It normally takes 4-6 weeks from making your remortgage application.
Because there’s some preparation needed, it’s a good idea to start looking at your options three months before your current rate expires.
Here’s a rough guideline for finding and securing a remortgage deal:
- Speak to a mortgage broker: A broker can help you understand your options and find the best deal based on your circumstances.
- Get your documents together: Having all your necessary documents ready can speed up the process.
- Submit your mortgage application: Your broker will guide you through this process.
- Property valuation: The lender will assess the value of your property, sometimes automatically.
- Receive a mortgage offer: Once approved, the lender will send you a mortgage offer.
- Legal process: A solicitor will handle the transfer of deeds from one lender to another.
- Completion: Your mortgage is transferred to the new lender, and they’ll start taking new payments.
Documents required for remortgaging
One of the most helpful stages is gathering the necessary documents together. Having these ready will significantly speed up the process and reduce potential hiccups and delays along the way.
Here’s a breakdown of the documents you’ll need:
Proof of Identity
You’ll need to provide a valid passport or driving licence. This requirement is to confirm your identity as part of the lender’s security checks.
Proof of Address
This could be a recent bank or building society statement, credit card statement, utility bill, council tax demand, or your driving licence (if not used for identity). These documents should be dated within the last three months.
Employed Proof of Income
If you’re employed, you’ll need your last three months’ payslips and most recent P60. These documents help the lender assess your income stability and mortgage affordability.
Self-Employed Proof of Income
If you’re self-employed, you’ll need your latest two years’ accounts, along with your last three months’ bank statements, and your last 2-3 years’ SA302s and tax year overviews.
CIS workers should provide 3-6 months of CIS payslips.
Other Documents
Depending on your circumstances, you may also need to provide copies of your bank statements. This lets the lender see your income and expenditure patterns.
reason for remortgage
If your reason for remortgaging is to consolidate debt or borrow more money for home improvements, then the lender is likely to want to see some additional proof of these.
Preparing for the remortgaging process
Preparing your documents for remortgaging can be a straightforward task if you set some time aside and approach it methodically.
Here are some tips to help you get started:
Organise your documents
Keep all of your required documents in one place. This will save you time and reduce stress when you need to submit them.
Keep documents up-to-date
Ensure that all your documents, especially bank statements and payslips, are consecutive and the most recent ones. Lenders need up-to-date information to make accurate assessments.
Handle potential issues
If there are potential issues, such as discrepancies in your documents or missing paperwork, address them promptly. Ask your mortgage broker for suggestions on how best to resolve these issues.
Remember, getting your paperwork sent to the lender in one batch can speed up the whole remortgage process, so it’s to your advantage to get everything ready ahead of time.
CONTACT A REMORTGAGE EXPERT
If you wish to investigate your re-mortgage options we can put you in touch with a fully qualified whole of market mortgage broker.
Choosing the right remortgage deal
When it comes to choosing a remortgage deal, there are several factors to consider. These include the interest rate, the term of the mortgage, and any fees associated with the new mortgage deal.
Here are some points to consider:
Interest Rate
Finding a new deal that is cheaper than your current rate could potentially save you a significant amount of money over the term of your mortgage. But more importantly, use your broker to scour all of the different rates to find the best ones.
Mortgage Term
Consider whether you want to extend or reduce the term of your mortgage. This will depend on your financial situation and long-term plans. A remortgage is the perfect opportunity to do this.
Fees
There will be fees to pay. These could include arrangement fees, broker fees, valuation fees, and legal fees. Sometimes, a deal with a lower interest rate might have higher fees, so it’s essential to consider the overall cost. Your mortgage adviser will be able to run a comparison that includes the cost of any fees.
Flexibility
Consider whether the mortgage deal needs to offer any flexibility, such as the ability to make overpayments or take payment holidays. Or maybe an offset mortgage would suit your needs better. Not all lenders offer these, so make sure you have thought about what’s important before the final decision is made.
remove someone
A transfer of equity remortgage will enable you to add someone, or remove someone from the mortgage while switching lender at the same time.
Using a mortgage broker
An independent mortgage broker can play a key role when remortgaging. They can offer expert advice, help you find the best deal, and guide you through the application process.
Here’s how a mortgage broker can help:
Expert Advice: A mortgage broker has in-depth knowledge of the whole mortgage market. They can explain complex concepts in simple terms and provide practical advice based on your circumstances.
Finding the Best Deal: A mortgage broker has access to the widest range of mortgage deals, including some that are not available directly to the public. They can compare different deals and find something that suits you.
Application Process: A broker can help you complete your mortgage application and submit it to the lender, along with all of the necessary documents. Afterwards, they will liaise with the lender on your behalf, saving you time and effort.
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An independent mortgage broker can access over 100 lenders on your behalf. They will make the process smoother and more profitable than going it alone.
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FREQUENTLY ASKED QUESTIONS
Do you need payslips to remortgage?
A remortgage is based on your income. Employed applicants will need to provide the last three payslips.
Can I remortgage with the same lender?
Yes, you can remortgage with the same lender, this is called a product transfer. However, it’s always a good idea to compare deals from different lenders to ensure you’re getting the best rate.
Do you need to show bank statements to remortgage?
This will depend on your overall financial status and loan to value. But lenders need to confirm your mortgage affordability and seeing your bank statements is a good way to do this.
What if I’m self-employed?
If you’re self-employed, you’ll need to provide your latest two years’ accounts, along with your last three months’ bank statements, and your last three years’ SA302s and tax year overviews.
Can you remortgage with bad credit?
There are a number of lenders that will consider a mortgage application that includes bad credit.
Can I borrow more money?
Yes and a capital raising remortgage is the perfect opportunity. Maybe you need to release equity to buy another house.
I have an existing personal loan
It’s certainly possible to get a new mortgage while having a personal loan. If you’re keeping the loan then this may impact on the amount that you can borrow, based on debt-to-income and affordability.
I’m stuck in a fixed rate
If you are in the middle of a deal then you need to be aware of exit fees or ERCs. Remortgaging to release equity on a fixed rate is possible, but care is needed.
