Remortgage · The Basics
The Remortgage 100.
The Basics
Focus: Definitions, core concepts, and suitability.
How does the calculator calculate the LTV ratio?
TL;DR Learn exactly how LTV ratios are calculated by financial tools, the key inputs needed, and why this metric is crucial for securing specialist UK lending.
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Can this calculator handle multiple scenarios or comparisons simultaneously?
TL;DR Discover if a financial calculator can handle multiple scenarios or comparisons simultaneously. Learn how to model bridging loans and complex UK finance options by saving and comparing different loan structures.
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Have I explored all possible solutions for my situation?
TL;DR Need to explore all finance options? We detail the steps for comprehensively reviewing your financial situation, from budgeting to specialist lending and seeking professional advice.
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What is my preferred outcome: repayment, remortgaging, or selling?
TL;DR Choosing the right exit strategy for a loan—repayment, remortgaging, or selling—is crucial. Learn how to define your preferred outcome and navigate the financial implications of each path.
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Are there any disputes or issues with the property that might affect selling or remortgaging?
TL;DR Property disputes or legal issues can seriously hinder selling or remortgaging. Learn how boundary conflicts, restrictive covenants, or tenant problems impact UK property transactions.
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Does my current property align with my personal values or future aspirations?
TL;DR Evaluate if your property truly matches your personal values and long-term goals. We explore the factors to consider, from lifestyle needs to financial flexibility.
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What is the timeline for making decisions before interest payments increase further?
TL;DR Understand the key indicators and timelines affecting UK interest rates. Learn how to plan your financial decisions now to mitigate rising borrowing costs and protect your property.
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How long is the lease on this property?
TL;DR Understanding how long the lease is crucial for buying or financing a property in the UK. We explain the difference between long and short leases, why 80 years is critical, and how to extend a lease.
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Can I buy an HMO property with cash and remortgage later?
TL;DR Buying an HMO property with cash offers speed, but remortgaging later requires careful planning regarding timing, valuation, and HMO licensing. Learn how to secure finance after a cash purchase.
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Can I get help with my mortgage payments if I lose my job?
TL;DR Losing your job is stressful, but help is available for mortgage payments. Learn about Government support (SMI), income protection insurance, and lender forbearance options in the UK.
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Are there penalties for paying off my mortgage early?
TL;DR Paying off your UK mortgage early often incurs early repayment charges (ERCs). Learn how ERCs are calculated, when they apply, and the potential impact on your finances.
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What if I want to downsize after taking out a Retirement Interest Only mortgage?
TL;DR Considering downsizing after getting a Retirement Interest Only mortgage? Learn how selling your property affects your RIO loan, the process of porting your mortgage, and the associated costs and considerations.
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What are the easiest ways to secure a loan for home improvements?
TL;DR Discover what are the easiest ways to secure a loan for home improvements in the UK. Explore secured loans, personal loans, and remortgaging in our expert guide.
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What happens if I can’t repay a secured loan?
TL;DR Secured loans are tied to your property. Learn what steps your lender can take, the risks involved, and how to manage the process if you struggle to make repayments in the UK.
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What are the most practical uses of a secured loan for my specific financial situation?
TL;DR Discover what are the most practical uses of a secured loan in the UK. From debt consolidation to home improvements, learn how this finance may suit your needs.
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Are there any fees involved in remortgaging?
TL;DR Remortgaging often involves several key fees, including product arrangement, valuation, and legal costs. Understand exactly which fees apply and how to minimise your overall expenses.
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How much equity do I need to remortgage?
TL;DR Understanding how much equity you need to remortgage your UK property is crucial. Learn about LTV ratios, minimum equity requirements, and why more equity means better rates.
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Is it a good idea to remortgage to pay off debt?
TL;DR Remortgaging to consolidate debt can lower monthly payments and simplify finances, but it extends the debt term and risks your home. Learn the pros, cons, and alternatives.
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How do I calculate my home equity before remortgaging?
TL;DR Learn how to calculate your home equity accurately before remortgaging. We explain valuation, outstanding mortgage debt, and Loan-to-Value (LTV) ratios. Understand your borrowing power.
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Can contractors release equity from their home?
TL;DR UK contractors can release equity from their home via remortgaging or secured loans. Learn about lender requirements, daily rates, and the risks involved today.
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Can I negotiate my mortgage rate with a lender?
TL;DR Can you negotiate your mortgage rate? Yes. Discover expert tips on how to negotiate effectively with UK lenders, when the best time is to switch deals, and how comparing offers can save you thousands.
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Are there mortgage options with no deposit?
TL;DR Zero-deposit mortgages are rare but not impossible in the UK. Learn about 100% LTV options like guarantor mortgages and Joint Borrower Sole Proprietor schemes. Understand the risks and requirements.
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What happens if I cannot remortgage or sell the property?
TL;DR If you are struggling to remortgage or sell your property, understand your options, including forbearance, alternative lending, or dealing with default proceedings. Learn the risks and steps to take.
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Is now a good time to sell in my local property market?
TL;DR Deciding whether to sell property now depends heavily on local trends, not national averages. We break down the key indicators—demand, supply, and interest rates—you must check locally to determine if it is the optimal time for your move.
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What is a business remortgage, and how does it work?
TL;DR Learn about business remortgages in the UK. This FAQ explains what a business remortgage is, how it works, the process, benefits, risks, and eligibility criteria. Understand the potential impact on your credit score and find answers to common ques…
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How do lenders determine my mortgage interest rate?
TL;DR Learn precisely how UK lenders determine your mortgage interest rate. We break down the key factors including your credit score, LTV ratio, the BoE base rate, and the chosen product type. Understand your costs better.
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What documents do I need to remortgage?
TL;DR Planning to remortgage in the UK? Discover the essential documents required, including proof of ID, income, and property details. Understand why lenders ask for specific papers to process your application smoothly.
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Can I remortgage to pay for my children’s education?
TL;DR Remortgaging your home can be a viable way to fund school fees or university costs in the UK. Learn how to release equity safely, the pros and cons, and the risks involved.
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How do I choose between a 2-year and 5-year fixed-rate mortgage?
TL;DR Choosing between a 2-year and 5-year fixed-rate mortgage requires balancing low initial rates against long-term security. Learn how your financial goals, potential rate shifts, and future plans impact this crucial UK property decision.
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What happens when my fixed-rate mortgage ends?
TL;DR When your fixed-rate mortgage ends, your payments change. Find out why you move to the Standard Variable Rate (SVR), how to secure a new deal, and the steps you must take to avoid higher costs.
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How much does a mortgage broker charge for remortgaging?
TL;DR Discover how much a mortgage broker charges for remortgaging in the UK. We explain typical fee structures, including flat fees, percentage charges, and commission models, so you can budget effectively for your next rate switch.
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How long does a mortgage approval last?
TL;DR Discover the typical lifespan of a UK mortgage offer. Learn about the validity period (usually 3 to 6 months), extensions, and what happens if your approval expires before completion.
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How can I find the best remortgage rates?
TL;DR Finding the best remortgage rates in the UK requires preparation, checking your credit score, comparing different types of deals, and calculating total costs. Learn how to secure the ideal mortgage.
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Can mortgage brokers help secure lower rates for HMO properties?
TL;DR HMO mortgages are complex. Find out how specialist UK mortgage brokers can significantly improve your chances of securing the lowest possible interest rates and favourable terms for your Houses in Multiple Occupation.
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Are there additional fees for repaying the equity loan early?
TL;DR Understanding the costs of repaying your equity loan early is crucial. We detail Early Repayment Charges (ERCs), redemption fees, and scheme administration costs in the UK.
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Can I convert a regular buy-to-let mortgage into an HMO mortgage?
TL;DR Converting a standard BTL to an HMO requires remortgaging onto a specialist product. Learn the steps, criteria, and costs involved in changing your property's mortgage type.
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What’s the difference between a large HMO mortgage and a small HMO mortgage?
TL;DR Discover the crucial differences between small and large HMO mortgages. Learn about mandatory licensing, specialist criteria, tenant numbers, and the valuation methods lenders use in the UK.
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Why are secured loans often seen as complicated, and how can I simplify the process?
TL;DR Secured loans can seem complicated, but understanding the process is key. This guide explains why they're often perceived as difficult and offers practical steps to simplify things, including assessing your eligibility, comparing loan offers, and …
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What happens if my HMO property becomes vacant?
TL;DR If your HMO property becomes vacant, you face licensing risks, mortgage issues, and financial strain. Learn the steps landlords must take to mitigate risk and manage costs in the UK.
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What mortgage type is best for me (fixed-rate, variable, tracker)?
TL;DR Deciding between a fixed-rate, variable, or tracker mortgage? Understand the pros and cons of each option in the UK. We help you determine what mortgage type is best for your unique financial situation.
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What fees do mortgage brokers charge?
TL;DR Discover what fees do mortgage brokers charge in the UK. We break down commission vs fee models, typical costs, and tips for finding a transparent broker. Understand your options.
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Can I borrow money for renovations after I buy?
TL;DR Looking to renovate your new home after buying it? Learn how you can borrow money for renovations after completion using remortgaging, secured loans, or further advances. Understand the costs and risks involved.
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Should I overpay my mortgage when possible?
TL;DR Considering overpaying your UK mortgage? Learn the pros and cons, how it saves interest, and important checks like early repayment charges (ERCs). Understand when it makes financial sense.
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Id like to write a quest post for a landlord association discussing the pros and cons of bridging finance?
TL;DR Exploring bridging finance for landlords: a comprehensive guide to its pros, cons, and typical uses in the UK property market. Understand the risks involved.
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Can I use a bridging loan to avoid property repossession?
TL;DR Learn how a bridging loan could help you stop property repossession. Understand the costs, risks, and how to use short-term finance to save your home today.
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Promise Money is a broker not a lender. Therefore we offer lenders representing the whole of market for mortgages, secured loans, bridging finance, commercial mortgages and development finance. These loans are secured on property and subject to the borrowers status. We may receive commissions that will vary depending on the lender, product, or other permissable factors. The nature of any commission will be confirmed to you before you proceed.
More than 50% of borrowers receive offers better than our representative examples
The %APR rate you will be offered is dependent on your personal circumstances.
Mortgages and Remortgages
Representative example
Borrow £270,000 over 300 months at 7.1% APRC representative at a fixed rate of 4.79% for 60 months at £1,539.39 per month and thereafter 240 instalments of £2050.55 at 8.49% or the lender’s current variable rate at the time. The total charge for credit is £317,807.66 which includes £2,500 advice / processing fees and £125 application fee. Total repayable £587,807.66
Secured / Second Charge Loans
Representative example
Borrow £62,000 over 180 months at 9.9% APRC representative at a fixed rate of 7.85% for 60 months at £622.09 per month and thereafter 120 instalments of £667.54 at 9.49% or the lender’s current variable rate at the time. The total charge for credit is £55,730.20 which includes £2,660 advice / processing fees and £125 application fee. Total repayable £117,730.20
Unsecured Loans
Representative example
Annual Interest Rate (fixed) is 49.7% p.a. with a Representative 49.7% APR, based on borrowing £5,000 and repaying this over 36 monthly repayments. Monthly repayment is £243.57 with a total amount repayable of £8,768.52 which includes the total interest repayable of £3,768.52.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME
REPAYING YOUR DEBTS OVER A LONGER PERIOD CAN REDUCE YOUR PAYMENTS BUT COULD INCREASE THE TOTAL INTEREST YOU PAY. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Promise Money is a trading style of Promise Solutions Ltd – Company number 04822774Promise Solutions, Fullard House, Neachells Lane, Wolverhampton, WV11 3QG
Authorised and regulated by the Financial Conduct Authority – Number 681423The Financial Conduct Authority does not regulate some forms of commercial / buy-to-let mortgages
Website www.promisemoney.co.uk