A Guide to Urgent Remortgages

A Guide to Urgent Remortgages

Remortgaging a property can be a viable way to improve your financial situation, particularly if you’re struggling to make your monthly repayments. It’s common to remortgage your home if you want to release equity or get a better interest rate, but remortgaging can also be an effective way to avoid house repossession.

What Is a Remortgage?

A remortgage simply means that you’re switching from your current mortgage to another one. Essentially, you’re taking out a new mortgage on your home and using the funds from this to pay off the old one. Providing your new mortgage offers better terms than the old one, you can improve your financial situation by getting a good remortgage deal.

If you’re currently on a standard variable rate and paying 5% interest, for example, remortgaging and taking out a fixed rate mortgage at 3% will mean you’re paying less interest and, as a result, your monthly repayments are likely to decrease.

What Is an Urgent Remortgage?

Urgent remortgages are the same as standard remortgages but the application and approval process happens much more quickly.

A standard remortgage typically takes around 4 – 8 weeks to arrange but urgent remortgages can be completed within just 2 – 3 weeks. If you’re in financial difficulties and are going to fall into mortgage arrears, for example, an urgent remortgage could enable you to reduce your monthly repayments to an affordable amount.

Remortgaging to Release Equity

When you remortgage a property, you can also choose to release equity and increase the amount you’re borrowing. If your house is worth £300,000 and you have already paid off £200,000, for example, you have £200,000 equity in the property and you still owe £100,000. If you remortgage, you could decide to obtain a mortgage for £150,000. This would reduce the amount of equity in the property to £150,000 but it would give you access to additional funds to use as you like.

Many homeowners remortgage to release equity when they want to fund home improvements, but this isn’t the only reason to consider a remortgage. With the potential to reduce your monthly repayments and restructure your finances, an urgent remortgage could be a good way to keep your property and avoid repossession.

How Does the Remortgage Process Work?

If you want an urgent remortgage, you’ll need to find lenders who can offer a fast remortgage deal. You can scour the internet looking for mortgage deals, approach lenders directly or use a mortgage broker to find deals for you.

You might be in a hurry to arrange an urgent remortgage, but pay close attention to the remortgage deals available. The type of mortgage and the interest rates available will affect your monthly repayments and the term of your mortgage, as well as the overall amount you’ll need to pay back, so it’s vital to consider the short and long-term implications that any remortgage offer will have.

Once you’ve found a remortgage deal that will improve your financial situation, you can begin the remortgage application process. You’ll need to submit a range of documents so that the lender can assess your circumstances, determine your affordability and decide whether or not to make you a mortgage offer.

To ensure no time is wasted when you need an urgent remortgage, be sure to have the following documentation to hand:

  1. At least three months of payslips.
  2. Proof of employment.
  3. Identification, such as a passport or driving licence.

A potential lender will also want to check your credit score. A poor credit rating can make it harder to get a good mortgage deal but, even if your credit score is fairly low, you should still be able to find urgent remortgages to suit your needs.

At this point, you can complete the mortgage application and, if it’s approved, you’ll be given a new mortgage with different rates and terms from your existing mortgage.

Should You Remortgage to Avoid House Repossession?

Urgent remortgages can be an effective way to reduce your monthly remortgage payments and they can, therefore, help you to avoid house repossession. However, this doesn’t mean that an urgent remortgage is always the right decision.

It’s important that any new mortgage is affordable, as you could still face repossession if you’re unable to keep up with repayments on your new mortgage. Similarly, you’ll need to be aware of any early repayment charges on your current mortgage, as this will increase your costs if you decide to remortgage your property.

How Can HomeKeep Solutions Help?

At HomeKeep Solutions, we have extensive knowledge of repossession law and financial regulations and we’re on hand 24/7 to provide the help and assistance you need. We’ll examine all possible options and find the best way to help you keep your home.

To find out more, contact the HomeKeep Solutions team today.