Can I remortgage early with the same lender?
You can remortgage early with the same lender, although technically this is often called a 'product transfer' rather than a remortgage.
Yes, you can remortgage whenever you like, however, If you are currently tied into your mortgage deal for a set amount of time (commonly 2, 3 or 5 years) then remortgaging before that end date may lead to a penalty called an early repayment charge.
Don't assume you need to wait until your current deal ends before you can start the ball rolling. As a general rule, you can start the process of remortgaging up to six months before your existing deal ends.
You can usually refinance with the same bank or lender that you originally got a loan through. But keep in mind, your mortgage lender is the institution that originated your loan, and that may be different from your current servicer.
When can I renew my mortgage? You may qualify to renew your mortgage as early as 150 days before maturity. If you do, lenders often waive any prepayment charges or other fees, depending on the mortgage type and other incentives. Thirty days before renewal, time gets tight and you should take action.
How early can you remortgage? You can remortgage at any time but there's no point doing it if it's not likely to benefit you in the long run. You want to choose a time when there's a positive benefit to moving your mortgage.
Yes, if your equity has increased, you can use it as a deposit, or maybe even buy a home outright if you have enough. If you 'downsize' and move into a lower value home, you can turn your equity into cash if there is some left over once you've bought your new home.
Usually this will be between 3 and 6 months before your deal ends, and even if you've not heard from your lender this is still the time to investigate your best options for remortgaging. Your lender will give you a redemption statement if asked.
A full remortgage with a new lender can take weeks or even months, but with your current lender it can take as little as a few days. However, if you're asking to borrow more (an advance) your lender will need to do more checks, and this could take longer.
Most mortgage lenders allow you to apply for a product transfer up to 6 months before your current deal ends (or at any time if you're already paying your bank's SVR - Standard Variable Rate). So, you can get a quote today (either fixed or tracker) and have up to 6 months to decide whether to take it.
Do you need an appraisal to refinance with the same lender?
You'll typically need a home appraisal to refinance your mortgage, both to confirm your home's value and to set your new loan amount. If your refinance appraisal comes in too low, though, you may not be able to refinance unless you use a streamline (no-appraisal) refinance program.
| Product | Interest Rate | APR |
|---|---|---|
| 10-Year Fixed Rate | 6.40% | 6.49% |
| 5-1 ARM | 6.51% | 7.86% |
| 10-1 ARM | 7.01% | 8.00% |
| 30-Year Fixed Rate FHA | 6.82% | 6.87% |
If your current lender offers the best deal or is willing to match the best deal you find with another financial institution, the refinancing process could be easier and you won't lose any money by staying. It could also make your life a bit easier in the long run to keep the same lender.
Mortgage renewal denied by a new lender
A volatile employment history, or a damaged credit score, along with any missed mortgage payments or other debt or loan repayments, can hurt your mortgage application with the new lender and easily lead to a denied application.
Yes, to some degree, mortgage interest rates are negotiable. Mortgage lenders have some flexibility when it comes to the rates they offer. However, in many cases getting a lower rate on your loan will come with a price, such as paying “points” to get a lower rate.
Shop around
You don't have to renew your mortgage with the same lender. You can move your mortgage to another lender if their conditions better suit your needs. Start shopping around a few months before the end of your term.
Theoretically you can remortgage whenever you want to, however, most lenders won't let you if you're still within the first six months of buying your property. Most people don't remortgage this early as it's unlikely you'll save money due to early repayment charges (ERCs).
You may find it difficult to remortgage if you've had a drop in income, recently changed jobs, become self-employed, or are facing redundancy. Other circ*mstances can also have an impact. For example, if you start a family or go on maternity or paternity leave, this can affect your remortgage application.
Most lenders will let you borrow up to 4.5x your annual income. You can remortgage for the same amount you have outstanding on your current mortgage.
A home equity line of credit, or HELOC, is typically the most inexpensive way to tap into your home's equity.
How can I get equity out of my house without refinancing?
Yes, there are options other than refinancing to get equity out of your home. These include home equity loans, home equity lines of credit (HELOCs), reverse mortgages, Sale-Leaseback Agreements, and Home Equity Investments.
When switching lenders, you are essentially taking out a new mortgage, and therefore you will have to pass the new lender's credit and affordability checks. If you get rejected, this could damage your credit score.
The advantages of remortgaging with the same lender are: There are generally less fees to pay as you are able to avoid legal costs and valuation fees. Your current lender will do an internal index linked valuation of your property to give an approximate value of your home at the current time.
It is certainly possible to remortgage with poor credit. Different bad credit situations will require different mortgage solutions. Don't worry if you have a bad credit score, it doesn't always mean you can't remortgage your property. There are likely to be options available to you.
Yes, you can remortgage multiple times over the course of your mortgage term as technically, there's no limit to the number of times you can remortgage. Some people choose to remortgage every time they reach the end of a fixed-rate deal. However, fixed-rate mortgages won't be right for everyone.
