Residential remortgage

Expert opinion – This isn’t necessarily a myth, but what’s easier? Picking a new rate online with your current lender or having more money at the end of the month for the next 2-10 years to spend on number one? Occasionally, your existing lender might have a competitive product, but choosing it on your own means you miss out on advice that might have helped you make a better choice, based on which lender or mortgage product might suit you better in the long term.

Sometimes, choosing a new lender could mean getting a lower rate, better customer service, larger borrowing amount in the future, or the option to make overpayments or take payment holidays.

Expert opinion – This isn’t true, and also not advisable. In a volatile market, as we have experienced over 2022-2024, you’d be forgiven for wanting to wait and hope that rates will drop. However, in the event they don’t, your finances will look a lot stronger if you start as early as possible. If you secure a rate 7 months in advance, you can still shop around in the meantime. Things aren’t set in stone until you sign the dotted line just before completion.

Most lenders usually allow you to switch to a new deal without advice, though you may have to arrange an appointment with them to do so. You are likely to be able to choose something around 3 months in advance, although with some lenders, you can do this up to 6 months in advance.

Choosing a new rate with your current lender doesn’t mean you automatically switch over to it. You can arrange it in advance, which is great if you are currently on a lower rate than what is available next time. As a result of increased interest rates, you may be wondering about how you can ease the pain of increased monthly payments, and if so, it is best to speak to a mortgage expert at Wise, who can look at various ways to help.

Expert opinion – It is common to feel like you are less worthy of a new mortgage deal because your income may have dropped, but lenders consider many types of income, that your current lender may not have needed to take into consideration. This can include child benefit, universal credit, maintenance income, lodger income, and even income from family or friends that might be willing to go on the mortgage with you, which is especially helpful nowadays for first-time buyers and those going through separation.

If your income has dropped, and very likely, your outgoings are going up, all the more reason to see if there is any money to be saved by moving lender to get the best deal possible.

Ultimately, it’s rare that you will be charged for a mortgage broker to find out if you would be accepted by another lender, so it’s worth having a conversation with a mortgage advisor at Wise.

Expert opinion – Actually, you do need a conveyancer (but not necessarily a qualified solicitor) to ensure all of the paperwork is submitted correctly to the Land Registry, which firstly protects you, because you ultimately want to be the owner of the house, and also protects the lender in the event you stop paying your mortgage for some reason. This is often provided free of charge, however, some small disbursements may be chargeable like the transfer of funds and ID checks. We usually suggest speaking to an expert who can recommend a suitable conveyancer to get this done for you. They may charge a small premium, but often, the lender will cover most of the cost for you.

This is a fairly simple step in the remortgage process, and mainly just involves signing the mortgage deed, and completing a few simple steps on an online portal. For the 45 minutes or so it may take you in total (a tad longer for those who find technology challenging), it could save you a considerable amount of money, so this should not put you off changing lender to knock money off of your mortgage payments.

Expert opinion – Frequently, the lender isn’t so interested in your measurements, so you can put the tape measure away. Very occasionally, the lender might ask for more than just proof of income, but they are generally taking steps to reduce mortgage fraud, which costs lenders a significant sum of money. The more money tackling and investigating fraud they have to spend, the more this gets passed on to borrowers through higher rates. If you are not a habitual gambler, or moving cash in and out of your account all the time, we’re sure you have nothing to worry about. Believe it or not, the fewer documents they need from you, the quicker it is for them too, so they will avoid asking for bank statements where possible.