Updated: February 16, 2022

Remortgage Brokers

Mortgage deal coming to an end? Looking for a cheaper rate? A broker could help! Our guide will tell you what a remortgage broker does, and if it's right for you.

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Pete Mugleston

Author: Pete Mugleston - Mortgage Expert

Updated: February 16, 2022

When the introductory rate period of your mortgage runs out, your loan will revert to your lenders’ standard variable rate (SVR) which is usually considerably higher than the best rates on the market. Remortgaging can save you £000s over the term of your mortgage. And the best way to find the most favourable deal according to your circumstances is to find a trusted remortgage broker.

In this article, we’ll look at the benefits of using a ‘whole of market’ remortgage broker and what you can do to help make the process as smooth and pain free as possible.

Why use a remortgage broker?

It’s vital you choose the right deal at every step of your home buying journey. Since taking out your previous mortgage, many things could have changed:

  • Your income might have increase
  • You may have fewer debts
  • Your loan to value (LTV) might be lower
  • Regulation may have changed

All of these could mean that what was right for you a few years ago is no longer your best choice of mortgage product. A mortgage broker will take time to understand your circumstances and match you with the right lender, making sure you meet the eligibility criteria before proceeding with your application. This reduces the risk of rejection which is both frustrating and potentially damaging to future credit checks.

They will also help you complete and submit the necessary paperwork – and chase it up for you if necessary to speed the process along. With a mortgage broker handling the bulk of the admin you can usually expect a remortgage to complete within four to six weeks, although it can be sooner.

With hundreds of lenders and thousands of available products, identifying the right deal for you without thorough knowledge of the industry is very difficult. You could check comparison sites, speak to your existing lender, and be tempted by the headline rates offered by high street banks. But this won’t even scratch the surface of the UK mortgage market.

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Benefits they offer

  • They act in your best interests
  • In the UK, all mortgage advisors must be qualified
  • They will explain various types of mortgages according to your needs
  • They will ensure all possible income streams are included as part of affordability checks
  • They often have exclusive access to deals not otherwise available
  • They help save you time and money
  • They boost your chance of success by approaching the right lender first time
  •  You are protected and may be compensated in the event of bad advice

What types of remortgage brokers are there?

There are three types of remortgage broker:

  • Tied brokers: Tied to a specific lender and only advise on their products
  • Multi-tied brokers: Limited to a specific number of lenders
  • ‘Whole of market’ brokers: Have access to all UK lenders

Some multi-tied brokers are able to advertise themselves as ‘whole of market’ brokers so always ask how many lenders a mortgage broker has access to before proceeding with a consultation.

Then there are brokers who have access to the whole market but don’t have specialist knowledge of niche lenders and products. We work with brokers who have whole market access and are specialists.

Why use our broker-matching service?

The first step to finding the right mortgage deal is finding the right mortgage broker. Rather than just finding any mortgage broker and hoping they find you a good deal, our broker matching service will take all your circumstances into consideration to ensure you are matched with one who has specialist knowledge according to your needs.

There are several reasons that your circumstances might be best suited to a specialist lender:

After an initial assessment, our broker matching service will put you in touch with a mortgage advisor who has a proven track record of securing competitive rates for people in similar circumstances to yours. And they will be more than just a mortgage broker. Their knowledge of specialist lenders and their contacts within the market make them an advocate for you. And that can be the difference between acceptance and rejection

How to get started

Follow these steps to ensure you get the best remortgage deal for your circumstances:

Step 1

Speak to your lender and find out what the outstanding balance is on your current mortgage and also what terms they’d be able to offer if you decide to remortgage with them.

Don’t agree to anything with them until you’ve covered the following steps below.

Step 2

Work out how much equity you have. Do this by estimating the value of your property with a local estate agent or checking the sale price for similar local properties that have recently sold.

Once you have an idea on the value of your property you can work out the loan to value (LTV), which is the difference between your outstanding mortgage and current value. The lower your LTV, the better rates you will be offered.

If you subsequently find you’re just outside a bracket that would enable you to borrow at a lower rate, consider ways of reducing the LTV and whether they are viable.

Step 3

Speak to a broker. The mortgage advisors we work with will be able to take all the information you’ve gathered above and use this to scour the market to find you the best possible deal to suit your circumstances. If you have a history of bad credit, they can find lenders who prioritise your current and future position over your past.

If you get in touch we can arrange for a remortgage specialist to contact you directly.

What information will I need to give to my broker?

The exact information required may vary depending on your circumstances, but there is some standard information you will be required to provide such as:

  • The purpose of your loan
  • Your employment status
  • Your age
  • Your credit history – different lenders use different credit reference agencies so it’s worth checking your history with Experian, Equifax and TransUnion
  • Affordability
  • LTV
  • Value of equity
  • The condition of your property

Do mortgage brokers charge fees?

Some mortgage brokers will charge you for the service. This might be an hourly rate, fixed fee or percentage of the amount you borrow. Others are free to use and earn commission from the lender. Some will charge a fee and receive commission.

Brokers are required by law to state any charges clearly in an Initial Disclosure Document before entering into any agreement to act on your behalf. Be wary of a mortgage broker who does not provide this document. Make sure you’re clear on the costs of advice before proceeding. Going it alone to avoid fees may be tempting but when compared with the expense of being trapped with the wrong mortgage product for five years, it could be an insignificant cost.

The initial consultation with the broker we match you with will be completely free. Brokers only get paid an agreed fee by you if they find you the right remortgage and will refund any up-front fees if they’re unable to do this.

Get matched with a specialist remortgage advisor today

There is a reason that around 80% of UK mortgages are secured through brokers; it’s the most effective way to get the best deal. Our broker matching services puts you in touch with a remortgage broker who will source the best lender for your circumstances. They will be with you every step of the way and consider your wider mortgage needs such as essential insurance products to protect your future and your property.

Regulatory changes in recent years have put more pressure on lenders to be responsible in their lending criteria and made using a broker to find the best deal first time even more important.

The brokers we use are fully qualified remortgage specialists, have ‘whole of market’ access and know which lenders to approach with unusual or niche circumstances.

Call today on 0808 189 0463 or make an enquiry online to arrange a no-obligation chat.

FAQs

What is the difference between a remortgage broker and a mortgage advisor?

There is none. Both terms describe the same role. The distinction to look out for is that between an independent or tied broker, but we can help you go one better than this by pairing you with an independent broker who specialises in remortgages.

Do I have to meet a remortgage broker in person?

No. If you’re happy to communicate electronically or by phone, there is no necessity to see your advisor face to face.

Do I have to wait until my current mortgage has run out before I begin?

No. Some lenders allow you to apply and lock in current rates up to six months before your existing fixed rate period ends. If rates subsequently rise, you still benefit from the lower rate you agreed to. However, if they fall further, you must still pay the higher rate or face a charge to move your mortgage elsewhere. If you’re considering this type of deal be sure to get professional advice.

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We can help! We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in Remortgages Ask us a question and we'll get the best expert to help.

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Pete Mugleston

Pete Mugleston

Mortgage Expert

About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

FCA Disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms that are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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