Many Revolution clients contact us for remortgaging advice as they come to the end of a fixed-rate mortgage term, or have seen better deals on the market and want to explore whether there are more cost-effective options out there.
Here, we will explain how remortgaging works, why your reason for remortgaging matters, and how a broker can save you money by offering bespoke products and broker-only deals that are not available on the open market.
Suppose you're unsure about whether working with a mortgage broker is your best bet, or whether you'd save more money liaising directly with a remortgage provider. In that case, we'll run through all the essential criteria to help you make an informed decision!
For more information about any of the content of this article, or for help with finding the right remortgage deal for you, give us a ring on 0330 304 3040 or send a message to email@example.com.
Is It a Good Idea to Use a Broker for my Remortgage?
There is no requirement to use a broker; so you can undoubtedly contact lenders directly, and submit your own application.
However, the benefit of using a broker is that they offer independent, expert advice - and are not tied into a specific product or lender, who might not be the best option for you.
As a specialist remortgage broker, the Revolution team:
- Looks at your currency mortgage, and what you are paying now.
- Consider your circumstances, such as income vs expenses.
- Asks about your requirements, why you'd like to remortgage, and whether you're looking for the best deal, or to raise as much capital as possible.
There is a lot more to remortgaging than just choosing a lender - you need to understand their criteria.
Providers are different, and if you’re unsure of their policies, you can spend time applying to lenders who can't help. This can then rack up credit checks on your credit history, which make it harder to then make additional applications to other lenders.
Revolution will assess your circumstances, provide tailored advice based on your needs, and help you choose the best option. That said, you could go it alone and browse the market yourself.
Below are the pros and cons of looking to remortgage with, and without, a broker.
Applying for a Remortgage Direct
You can apply directly to your existing bank or another lender who you'd like to switch your mortgage to. The difficulty is that you can miss out on better deals and lower rates, without knowing what alternatives are available.
One option is to contact your current bank, and some other lenders, and compare what sort of products they offer. Remember, though, that this doesn’t guarantee they will be able to extend lending, as each application will be subject to screening for affordability.
Benefits of applying directly are that:
- You won't need to pay any brokers fees - although note that often these costs are paid by the lender, not by the applicant.
- You don't need to be concerned about working with a broker who isn't acting in your best interests. Some restricted brokers only recommend mortgage products from a particular lender or those products which earn them the most commission, which means the remortgage they recommend might not be in your best interests.
The key here is to work with an independent, whole-of-market broker. We aren't tied into any bank, lender, or brand, so we can offer any mortgage deals from any provider that we think is best for you.
A word of caution; many homeowners choose a mortgage comparison website to check out remortgage deals.
These provide only indicative rates, and the brand's features are usually only listed because they pay for the opportunity, rather than having been selected by an independent business as offering the best deals.
Most niche lenders do not list their products on price comparison websites, and so these sites may only show you a small fraction of the available remortgages, many of which will not be the most competitive.
Applying for a Remortgage with a Broker
The benefits of choosing an independent, experienced broker for your remortgage include:
- Whole-of-market access: as an independent firm, Revolution Brokers access and compare remortgages from a vast number of lenders. That means we can offer products that aren't available from mainstream lenders, are not featured on price comparison websites, and sometimes are not available for direct applicants.
- Expert recommendations: our team can advise on the best mortgages for you, and recommend the right products to suit your circumstances. That includes fixed-rate borrowing, repayment mortgages, interest-only remortgages and tracker loans.
- Fast Applications: we process thousands of remortgage applications every month, and have in-depth knowledge about the products, rates, terms and criteria of each lender. That means we can help with your remortgage search, application and documentation, making the whole process quicker and stress-free.
- Quicker Acceptances: the Revolution team liaise and negotiate directly with lenders, meaning that we make sure they process your application as quickly as possible. Typically, a remortgage application takes just four to six weeks, and sometimes less.
- Access to Specialist Mortgages: one of the most common issues we encounter is that mainstream lenders work to strict criteria, with very little flexibility. For example, if you are self-employed, or want to remortgage a property with a thatched roof, most high street lenders will not be able to help. A broker works with niche lenders and off-market providers who can accommodate any non-standard circumstances.
- Bad Credit Remortgages: as with other criteria, if you have a low credit score or an adverse credit history, it can be tough finding a remortgage provider who will accept your application and offer reasonable rates. Revolution works with several niche bad credit lenders who can negotiate terms to suit your requirements.
- Impartial Advice: a broker will help you calculate the deposit you need, your total monthly outgoings, your income and any other figures required for your application. As an FCA regulated firm, our advice is honest, impartial and transparent, so we make sure you have all the information before you make a decision.
- Speedy Communications: we always make sure you know what is happening, and when changes are made to mortgage policies. That means you can make faster decisions and are never left out in the cold if criteria change and you need to consider a different lender.
- Ongoing Customer Care: if in the future, you decide that you're unhappy with your remortgage, a broker is more likely to be able to help. As an FCA regulated firm, we always recommend the right products for you, but can quickly help you find an alternative should your circumstances change.
- Higher Acceptance: since we know the criteria and policies of each lender, we will only ever recommend applying to a provider who is likely to be able to accept your application. This means we have a high success rate, and you are far more likely to be offered a remortgage when applying through a broker.
- Structured Fees: many applicants feel unsure about using a broker because they imagine having to pay high costs for the service. However, the opposite is true - most clients save a significant amount of money since an expert broker has negotiated the terms of their mortgage on their behalf. The lender covers most brokerage fees, and in some cases, we can even encourage a lender to waive their fees altogether!
For more advice about working with a remortgage broker, give the team a call on 0330 304 3040.
Should I Use a Mortgage Broker for my Remortgage?
The decision is entirely yours; there is no requirement to use a broker. Still, you might save a considerable amount of time and money by doing so!
If you do choose to work with a broker, always ensure:
- They are independent and impartial.
- They are FCA regulated.
- They offer whole-of-market broker services.
How much are the Brokers Fees for a Remortgage?
As a very rough indication, a typical remortgage costs anything from £300 to £600. However, this all depends on what sort of lender you choose to apply to, and whether you have any unusual circumstances.
For example, a bad credit mortgage usually takes more time and negotiation, and therefore carries higher costs. That said, the amount you will save by having competitive rates is often far more significant than the broker fees.
Fees depend on the lender, type of mortgage, and circumstances around the application, but you'll find brokers offering:
- Fixed rates as a remortgage package service.
- Hourly rates for their time.
- A percentage rate based on the amount you are borrowing (e.g. 0.5% of the mortgage value)
- Or, sometimes a combination of the above.
Can I Get a Remortgage Broker for Free?
You can, depending on the circumstances. Some lenders and mortgage products will cover the brokerage fee as a commission, in which case there is nothing for you to pay as the applicant.
Most brokered mortgages do carry a fee, but again this is usually far less than the savings available.
For applicants with non-standard circumstances, for example, having bad credit, not having a deposit, or needing to remortgage an investment property, an experienced broker is far more likely to find you a deal.
Do I Need to Find a Local Broker for my Remortgage?
Not necessarily - distance doesn't make a considerable amount of difference when you are comparing the rates and terms available from nationwide lenders.
In the digital age, a lot of communications can be managed online or digitally, saving you time and making the process faster and easier.
Revolution Brokers works with private and commercial clients across the UK, all of who have access to the same speedy and professional service.
Professional Remortgaging Advice
If you are stuck with trying to decide the best lender to apply to for your remortgage, give the Revolution team a call - we are on 0330 304 3040 or via email at firstname.lastname@example.org.
The team can advise on the best rates available, the right lender to apply to, and ensure your remortgage application is processed smoothly and quickly.