A mortgage is simply a financial loan to enable you to purchase a property, with the key difference from other loans that this one is secured against your home.
With your home as security, the lender is usually able to offer you a lower interest rate than you find with other types of loan.
Whenever the property is sold, the mortgage lender has what is called a ‘first charge’ – which means that any outstanding mortgage loan must be paid back first.
And remember, because your home loan is secured against your property, if you don’t keep up your monthly mortgage payments, your lender may be able to sell your home to recover any money you owe. We can advise on and arrange insurance and protection policies exclusively from Legal & General to help keep your home should the worst happen.
By moving your mortgage to a new lender you may be able to take advantage of a better mortgage rate. Some lenders offer to pay the legal costs and valuation fees associated with remortgaging.
The process for remortgaging your home can take between approximately eight and twelve weeks as the new lender will want to make similar checks to those that the original lender carried out when you first bought your home.
Remember that you may have to pay an early repayment charge to your existing lender if you remortgage, so you will need to check the terms of your mortgage carefully and confirm the arrangements with your current lender. Find out more about remortgaging.
If you’re remortgaging or moving home, it’s a good time to review your existing insurance arrangements to make sure you have sufficient cover.
We do not charge for our advice. Instead, we simply charge a fee for processing your mortgage application. Our typical fee is £450, however the actual fee will depend on your circumstances.
Your home may be repossessed if you do not keep up repayments on your mortgage.