Remortgage Advice?

Q: How long does the re-mortgage process usually take?
A. The process of arranging the mortgage itself can be fairly short and it is possible to have a mortgage offer in place within two weeks. There are frequently delays beyond the broker’s control, such as waiting for replies to information requested from existing lenders. This can cause delays. Generally speaking the average time to receiving a mortgage offer is around six weeks.

Q: Are there any upfront fees to pay?
A: There are no upfront administration fees to pay at all. Part of the mortgage process includes a valuation which needs to be carried out by an independent surveyor. You will be asked to meet those costs, but all other fees are payable at the end of the process, directly from the re-mortgage.

Q: What is a secured loan?
A: It is exactly as it suggests. It is a loan which is secured on your property by means of a charge. The process of securing it means the lender can offer terms, which might otherwise not be available, including a longer term to repay the loan and a more favourable interest rate.

Q: What is the difference between capital & interest and interest only mortgages?
A: A capital and interest mortgage is where your monthly repayment includes an element of both the capital sum you borrowed and a portion of the interest you are charged on the loan. At the end of the term you make your final payment and the mortgage is paid off in full. The house then becomes yours.

With an interest only mortgage you are not paying off any capital to the lender in your monthly repayment and the balance is not reducing. You are simply paying interest each month on the loan. At the end of the term you need to make a payment to the lender of the capital sum you borrowed. This is commonly achieved from the proceeds of a savings vehicle. The options available here are varied and you should seek advice from a fully qualified financial adviser before making any commitment.

Q: Why does the broker need my bank details?
A: When assessing your loan, some lenders require you to have a valid bank account from which you can have a direct payment in their favour to make your repayments. Bank account numbers are in a pre-determined format that enables a lender to confirm the validity of the numbers you give.

Q: Why would I need a new buildings insurance quote?
A: Often, if you have your current buildings insurance through your lender, when you settle your mortgage with them your buildings insurance will cancel automatically. The new lender requires buildings insurance showing their interest. The broker will offer to find a highly competitive quotation for you to consider.

Q: Why can’t I have a 100% mortgage?
A: When lenders consider applications, one of the aspects they consider is the risk. Naturally, if there is no contribution from the applicant the risk to the lender is higher. In this situation, they will only consider applications from people who have not had any financial difficulty in the past. If you have been bankrupt, or in an IVA, you are statistically a bigger risk to most lenders.

Q: If I have been bankrupt, why do I need a discharge certificate if I have passed the date for automatic discharge already?
A: Lenders must have confirmation that you are discharged. Automatic discharge after one year only applies if you have only been bankrupt once. Also, in extreme cases, the trustee in bankruptcy can apply to have your discharge suspended. It is for this reason the lender asks for a certificate from the Court to confirm that you have actually been discharged.

Q: Why does the broker you need original identification and not copy documents?
A: It is a requirement that all identification is verified. The lender will never meet you but still has to satisfy regulators that this process has been carried out. They rely on their brokers and packagers to do this job for them. As lenders and brokers can only send in a certified copy of the original, they must clearly see the original document first.