Remortgage means paying off the mortgage from the bank where you previously took out a mortgage and applying for a new mortgage with another bank.
The first thing to consider is whether your current mortgage is still within the penalty period, which is generally 2 to 3 years. If your current mortgage hasn't passed this period, you'll have to pay interest penalties when you make an early repayment.
Should you qualify for a new mortgage, you'd be required to sign a mortgage contract, which would incur legal fees. However, cash rebates and legal fee waiver are usually offered to mortgage takers, so that would help you to cover some of the extra costs. Besides, if the new mortgage interest is lower than the current rate, extra savings in monthly interest can add up to offset the penalty expenses and other expenses.
Before you remortgage, you should first know about the latest mortgage interest rate, and calculate how much you could save each month with the new mortgage. Through MoneyHero's mortgage comparison page, you could easily find the right mortgage to save money. The next step is to confirm the conditions of remortgaging, make a mortgage evaluation, and look into whether your chosen law firm is on the bank?s list of approved law firms.
Then you can see if your new mortgage is enough to cover the previous mortgage's outstanding balance.After you've chosen a bank to do the remortgage, you should contact your law firm to check the procedures of remortgaging. The lawyer will extract the property contract from the bank and proceed with land registration.
After the remortgage is approved, your lawyers will check the mortgage balance with the previous mortgage lender and invite you to sign the new mortgage contract and property contract. The new mortgage will be delivered to your previous mortgage lender through the lawyer.