Home Mortgages Guide To Moving Your Mortgage

Guide To Moving Your Mortgage

Remortgaging Guide

  • we offer a range of products for people looking for a new mortgage deal
  • many of our products include a free standard valuation (up to £200) and no legal fees for remortgages
  • our arrangement fees can be added to the loan (subject to loan to valuation limits)
  • our step-by-step mortgage application process is simple to follow
  • you could get a decision in principle today

If you're looking for a better deal on your mortgage, want to find a better rate or free up some money for home improvements, The Loughborough may be able to help.

See products in our range and rates.

You may be able to reduce your monthly payments by staying in your home and switching your mortgage. We'll take you through the options, so you can find a mortgage that's right for you.

Tips for remortgaging success:

  • don't just switch to the lowest interest rate: to understand the overall deal, think about the fees you'll pay and watch for introductory rates which go up sharply
  • weigh up the shorter term cost of remortgaging against the longer term gains

Why Remortgage?

Remortgaging means switching your current mortgage to another mortgage or another lender, without moving house.

When you remortgage, you might be able to:

  • save money if you’re coming to the end of your current mortgage deal or paying a high rate of interest
  • borrow money to improve your home or for other reasons
  • raise money to consolidate your debts

Think about what you want from your new mortgage and which benefits you’d like to keep from your current deal. Ask yourself whether you want predictable monthly payments, the flexibility to pay extra when you can or the option to take payment holidays, if available.  Please note: payment holidays will either extend the term of the mortgage, or compound the monthly repayments over the remainder of the term.

Costs of Remortgaging

When remortgaging, there are costs involved which you need to weigh up against your likely long-term gain.

Your current mortgage provider may charge you:

  • an early repayment charge or mortgage exit administration fee
  • administration fees, discharge fees and a deeds release fee

Plus you may need to think about:

  • a valuation fee
  • an arrangement or booking fee
  • legal fees

Repaying the Mortgage

There are three basic ways of repaying your mortgage: repayment, interest only or part repayment/part interest:

  • with a repayment mortgage - also known as a Capital and Interest mortgage – you pay off interest on the loan and a portion of the capital each month. You gradually pay off the entire amount you borrowed, as well as the interest, over the life of the mortgage provided payments are maintained.
  • with an interest only mortgage the payments you make each month only cover the interest on the loan. You will still owe the amount borrowed (‘the capital’) at the end of the mortgage term. It is your responsibility to make sure you have suitable plans in place to repay the capital.
  • part repayment/part interest only mortgage – this is where a portion of the loan is on a repayment basis and the remainder is on an interest only basis. Our interest only rules apply to the interest only element of the loan (see above for details).

How to apply

We like to make your life easier, call into one of our branches and talk to one of our friendly and professional staff. Alternatively, you can call us on 01509 631950 or request a callback at a time convenient to you.

It will help to have handy
- ID and proof of residency in UK
- Details of income for all applicants
- Particulars of property being mortgaged

 

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