FAQ - Remortgages

1. What is a remortgage, and how does it work?

A remortgage is a fancy word for changing your mortgage without moving your home. You would switch your current mortgage to a new deal that would reduce your monthly expenditure. If, however, you need the extra money, you could release the equity in the property. You need not close your current mortgage, though you should be aware of any exit charges that might apply. Factor these in when you are looking to find a new deal.

Remortgaging normally means you end your old mortgage scheme and switch to a new one, which involves switching your lender, though it may not always be strictly true. You could stay with your current lender and merely changing your deal by opting for a fixed rate, or change to a variable rate should you be hopeful of the interest rates falling.

2. How competitive are your interest rates?

We have fostered excellent long-standing relationships with some of the top UK lenders. This puts us in a better position to find loans at very competitive interest rates. We are almost 100% certain that we could find you a loan that would suit your needs and circumstances.

3. Is it always true that consolidation will reduce my monthly payments?

Though not always 100% true, this statement does carry a lot of weight. In some cases, you could save up to 40% on your monthly payments, as the interest rates on secured loans are normally lower than that on unsecured loans.

4. You don’t do credit checks. How can you offer loans without them?

Just by filling out our form, we screen you for a pre-qualification, which means that we use your information to decide if you qualify for one of our loans. Typical questions may include information about your credit standing, as well as information about your employment, what assets you own, as well as income and contact information.

After filling in this information, we would normally advise you on what amount and interest rate you qualify for. As this is a pre-qualification, the offer is tentative. We would still have to do a credit check to ensure you would be able to repay the full loan amount.

5. My credit history is poor. Can I still get a loan?

Just because you have had difficulties in the past, it does not mean you will be unable to get a loan ever again. We are experienced in arranging loans for people who have had financial difficulties, so would be more than pleased if we could assist you!

6. Are there high costs attached to a remortgage?

There are costs involved, but the bulk of these costs will consist of valuation and legal fees. A large mortgage means it will be an economic move. Larger remortgages are easier to administer and everyone benefits more.

7. May I use the money raised from a remortgage as I please?

The money is yours! Feel free to use it as you please. However, it may be a good idea to avoid spending the money on drugs, gambling and fancy cars.

8. How long do I need to wait before you approve my remortgage?

It may take a couple of weeks, anywhere from four to six weeks. There is a fair bit of legal work involved, and we need to ascertain whether you can afford the remortgages additional payments.

9. Can you advise me whether a re-mortgage is worthwhile?

Yes. Assuming we know enough about your circumstances. The final decision has to be yours, of course.

10. I need advice on remortgages; can you help me to decide?

Yes, we will certainly endeavor to assist you. Assuming we know enough about your circumstances to offer practical advice. However, the final decision will be yours.

11. Having problems with arranging a remortgage?
Harrington Brooks can help you source the finance you require. If you have previously encountered problems with arrears on your mortgage, CCJ’s, Loans or if you have no proof of your annual income, we can help you find a solution which fits your requirements.

12. Why can Harrington Brooks finance my remortgage when other lenders can’t help me?
We offer a range of products and services to assist individuals who have previously experienced bad credit. Our trained advisors will work with you to find the best solution on the market. Harrington Brooks use alternative lending criteria compared with the other High Street names which allows us to be a little more flexible, finding you an appropriate mortgage solution.

13. Can you explain an interest only mortgage?
With an interest only mortgage the only payments you make each month are the interest on the money you have borrowed. This makes monthly payments more affordable, however, you have to set up a savings / investment facility in order to repay off the outstanding mortgage at the end of its term.

14. Early Repayment Charges – what are these?
These are charges that any mortgage provider may charge you if you repay you mortgage off early or indeed transfer your existing mortgage to another mortgage provider. We would advise you to always check the small print.

15. Remortgaging – how long can I expect this process to take?
Arranging a remortgage obviously depends on your own personal situation, however as a guide to timescales it takes on average 1 month to arrange.

16. What about life insurance? Do I need this to cover my remortgage?
Life assurance is not a requirement for any mortgage provider; however the majority of individuals taking out a mortgage will take out life assurance to protect their loved ones should they die, as this cover would mean that the family home will not be lost as a consequence. We would advise all of our customers to take some kind of life assurance cover for their own piece of mind.

17. What is Payment Protection Insurance?
A way of protecting your monthly mortgage or indeed any loan repayments would be to take out a payment protection insurance policy. This means that if you become ill or cannot continue employment because of sickness or redundancy etc your mortgage or loan payments will be made on your behalf.

18. Is Payment Protection Insurance mandatory?
You do not have to take out a payment protection policy, however it is something which we would advise you to do for your own reassurance.

19. How do I arrange to remortgage?
Arranging your remortgage couldn’t be easier. All you need to do is either complete the online application form and we will provide you with a quote detailing our best deal available. Alternatively, if you prefer you can call one of advisors on 0808 131 0040 who will be happy to assist with your enquiry.

20. What happens to my mortgage if I decide to move house?
There are many mortgage products available which can transfer over to your new property, however, we would advise you to read your mortgage policy terms and conditions carefully. If you are considering moving house, just call one of our trained advisors who will give you advice on this matter.

21. What are some of the problems people are experiencing with remortgages?
Besides the obvious problem of affordability, many people may have difficulty with the existing mortgage loan’s terms and conditions. This means that they may be tied in for a fixed period, and they have to pay a redemption charge should they wish to change to a new deal.

22. What should I watch out for on the remortgage market?
A few lenders charge their clients extended redemption penalties. Watch out for them, as you could lose a lot of money like this.

23. Remortgages have become immensely popular. Why is this?
The new breed of homeowner is less likely to have loyalty for one particular lender. They are more apt to consider a remortgage if it means they’ll receive a better deal. transferring your mortgage/remortgage to a new lender could now save you money, and raise finance.

The UK has also experienced somewhat of a property boom, with home values increasing steadily. Homeowners are now experiencing positive equity, and they could elect to remortgage and have this equity released for additional finance.

24. What type of interest rate can I expect with a remortgage agreement?
The interest rate you receive will depend on the base rate that the Bank of England determines. You should ensure you receive an interest rate that is lower than your current mortgage agreement if you want a competitive rate.

If you only want a remortgage to change your current mortgage type from fixed or capped interest rate, you should ask the lender for their terms and conditions.

25. I don’t need cash so I have no real reason to remortgage.
This is a good point you make. However, you may be able to lower your interest rate and receive cash back on your remortgage. What’s more, you could also enjoy greater flexibility on your repayment schedule.

Releasing the equity in a property is not the sole reason people remortgage. Interest rates are at a very low level, and this means greater competition amongst mortgage lenders. So why not use this to your advantage?