Five facts you should know about remortgaging
A remortgage is where you take out a new mortgage on a property you already own - either to replace your existing mortgage, or to borrow money against your property. Around a third of all home loans made in the UK are actually remortgages. We answer some of our most commonly-asked questions by those considering a remortgage.
What is a remortgage?
A remortgage is the process of paying off one mortgage with the proceeds of a new mortgage, using the same property as security.
When do I cancel my mortgage payments?
Your mortgage with your existing lender must be paid right up to the agreed completion date and your lender will provide us with the figure required to redeem your mortgage up to the time of completion. You should not cancel your mortgage payments until we have confirmed this to you.
What will happen to any overpayments made to my existing lender?
If any overpayments are made to your existing lender these will be refunded to you direct from the lender into your account or via cheque or via ourselves from your lender.
Do I need to pay stamp duty when I remortgage?
Occasionally stamp duty is payable, even though you are only remortgaging the property. This is normally when a transfer of the property title is also taking place as part of the remortgage transaction.
I have a second mortgage on my property – what happens about that?
You may wish to repay the second charge as part of the remortgage process. Alternatively, you may wish to postpone the second charge so the new lender will have the first charge on the property and the second charge will remain as a second charge sitting after the new loan.
Content correct at time of publication