Barclays Woolwich Remortgaging

It’s important that one understands the motive and requirements before going for remortgaging. Remortgaging requires a lot of consideration, can involve some transfer cost and hence all the cost and requirement parameters should be clearly understood before going for remortgaging. Here, we present the details of remortgaging as available from Barclays Woolwich

Remortgaging could save you money - and it may be easier than you think.

It's the process of moving your mortgage from one lender to another or choosing a different type of mortgage from your current lender. It could also cut your monthly repayments.

When should I consider remortgaging?

• If you're coming to the end of a mortgage deal and are about to move on to your lender's Standard Variable Rate.

• If your home has risen in value since you bought it, remortgaging could provide a cost-effective way of borrowing larger sums of money at lower mortgage rates of interest.

What to think about before remortgaging

Remortgaging can be a fairly straightforward process. The first step is to talk to a mortgage specialist about the wide range of mortgages available. Here are some example of the kinds of things you need to consider if you want to remortgage.

• If you're locked into a fixed-term deal with your present lender, you may be liable for an early repayment charge that could wipe out most of your potential savings. You could also be charged a fee for closing your mortgage with your old lender.

• When comparing your old mortgage with a proposed new one, make sure that you compare like with like, eg a repayment mortgage with another repayment one rather than an interest-only loan.

• If you only have a small mortgage, you might be better off sticking with your current deal, as any savings could be cancelled out by the costs.

How it works

Your mortgage lender will want to know several things when you remortgage, including the market value of your property and your current income. Most lenders will require you to have at least 10% equity in your home.

Once your remortgage application has been accepted, the lender will instruct a surveyor to visit your home to establish how much the property is worth. Do be aware that a surveyor will often value your home at a lower price than an estate agent. The whole remortgage process - from your first conversation with a mortgage specialist to starting your new mortgage contract - can take six to eight weeks. However, this should only be considered a guideline. Woolwich Switch & Save® If you're thinking about remortgaging and would like to find out what we can do for you, call our mortgage advisers on 0800 316 5500*, see our remortgaging offers or current deals for our existing customers. Customers switching from another lender can use the Woolwich Switch & Save remortgaging package with no valuation or legal costs. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Link to previous articles: Barclays Woolwich Mortgage Selector: Which Mortgage is right for me? Barclays Woolwich Mortgage: Property Ladder-2 Barclays Woolwich Mortgage: Property Ladder Checklist for Buying a Home Barclays Woolwich Mortgage FAQ Barclays Woolwich Mortgage Glossary

Alliance Leicester Guide to remortgaging

You may want to switch your mortgage to enjoy a better rate, or you may want to borrow extra money for some home improvements, but what is remortgaging really all about?
What is a remortgage?
Remortgaging is the process of moving your mortgage to a new lender without moving home – you just take a new mortgage to pay off your current one.
Why should you think about remortgaging?
By remortgaging you can take advantage of the current mortgage deals on offer, and…
…you could save money
Remortgaging is a great way to save money. Find out what interest rate you are paying on your current mortgage, and see if you could get a lower rate with Alliance & Leicester and save money.
…you could raise money
Remortgaging can help you release any money locked up in your home. If you are looking to raise a bit of extra cash for home improvements, a well deserved holiday or even a new car, remortgaging may be a cost effective option. And if you can also save money by lowering your interest rate, your mortgage payments could cost less than you think.
…you could consolidate your debt
Remortgaging, taking advantage of lower interest rates and borrowing a little extra can be a cost effective way to consolidate any expensive debt you may have e.g. credit and store cards or loans.
…you could avoid moving home
The news is full of rising house prices, so if a new home seems out of reach, why not improve your current home? You could remortgage to raise money to add an extension – you may increase the value of your home too!
When should I remortgage?
If you are coming to the end of your current deal – maybe a fixed or discount rate, or if you are paying your lenders Standard Variable Rate start thinking about remortgaging and saving money now.
The remortgage process
Step 1 Decide if and why you want to remortgage. Do you want to remortgage to borrow more money? If so you need to make sure there is enough equity in your property.
Or, do you want to save money or look for a better mortgage deal? Have a look at our range of mortgages or use our Quick Quote calculator to see if you could save money by remortgaging to Alliance & Leicester.
Step 2 Contact your current lender for a redemption statement, and do your maths! Make sure you will be better off by remortgaging, there will be fees and charges involved so make sure the savings outweigh the costs.
Step 3 Take a look at our mortgages and find a deal to suit your needs. View our mortgage range. If you are not sure what mortgage you want, we can help you choose

Step 4 Produce your Key Facts Illustration for your chosen mortgage – this will tell you everything you need to know to make a decision about your mortgage. Step 5 Apply for your mortgage, call us on 0800 056 3254† THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT †Our lines are open 8am-9pm weekdays and 9am-5pm Saturdays. Calls are free from UK landlines although call charges may vary from mobile phones. Mortgages are subject to status, valuation, availability and our lending policy.

Link to previous articles: Alliance Leicester guide to moving home Alliance Leicester Guide: Buying your first home Guide to Alliance & Leicester Mortgages Alliance & Leicester Mortgage Loans FAQ-1 Alliance Leicester Mortgage Jargon Buster Alliance Leicester Lifetime Base Rate Tracker

Types of Mortgages

Unfortunately in recent years mortgages have become increasingly complex and wrapped up in technical jargon. Borrowers now need to consider at least two things, the type of mortgage loan they want and how they are going to repay it. Have a look at your options below.

Types Of Mortgages: Here is the list of different types of mortgages that are available in UK markets.

Variable Rate Mortgage

Rates on these loans fluctuate in line with general interest rates but because they are at the lenders discretion they dont necessarily move as far, or as fast. Discounts are usually offered to new borrowers in the early years.

Tracker Mortgage

Rates on tracker loans are normally linked directly to movements in the Bank of England base rate. The link may be for a limited period rather than the life of the mortgage.

Cashback Mortgage

When these loans are granted, cash payments are given to borrowers to spend how they like. They are typically between 6 per cent and 8 per cent of the loan.

Fixed Rate Mortgage

Rates of interest on these loans are guaranteed not to change for a specified period, typically the first three to five years of the mortgage.

Capped Rate Mortgage

With this type of loan, the interest rate is guaranteed not to exceed a fixed level during the capped-rate period. The advantage is that it can go down if rates are cut.

Repayment Methods

Repayment Mortgage

Also known as capital and interest mortgages because part of the monthly payments gradually pays off the loan while the remainder covers the interest on the amount outstanding.

Offset Mortgage

These loans are taken out in conjunction with a current account or savings account. Regular mortgage repayments are required but at the same time the cash in the other accounts helps to reduce the loan, thereby saving interest. This can help to speed up repayment of the mortgage.

Interest Only Mortgage

As its name implies, the borrower pays the interest only on the loan during the mortgage term so the capital remains outstanding. Payments may also be made into a savings scheme, such as an Individual Savings Account, to repay the capital at the end of the term. Sometimes the loan is repaid out of the sale proceeds of the property.

Endowment Mortgage

This is where an interest-only loan is combined with a life assurance with-profits policy intended to pay out a sufficient sum to clear the mortgage at the end of the term. But endowment policy payouts are not guaranteed and many are currently expected to produce shortfalls.

Link to Previous article : How the Standard Compensation is calculated

Open Market Home Buy Scheme - 4

Repaying the equity loans

Because the amount you owe on the equity loans is based on the value of your home, when you repay them your property will have to be valued. You will have to pay for this valuation.

Repaying the mortgage lender

The mortgage lender’s equity loan will run for the same length of time as your standard mortgage loan – often known as ‘the term’. You will agree this with the mortgage lender when you take out the loans. At the end of this time, you must pay whatever you owe on the equity loan. The mortgage lender will often allow you to repay your loans earlier, but they may charge you a fee for this, known as an ‘early repayment charge’.

You may also have to repay the mortgage lender’s equity loan if you move home – check whether your lender will allow you to transfer the loan to a new property. The amount you owe on the equity loan will have gone up if the value of your home has increased.

Think about how you will repay this money.

Repaying the HomeBuy Agent

The HomeBuy Agent’s equity loan won’t have a fixed date for repayment. You repay the loan when you sell your home, or if you are no longer eligible for the scheme – for example, if you leave your qualifying employment. Your HomeBuy Agent will tell you more about how this could happen.

You can repay the HomeBuy Agent’s loan earlier if you wish, but remember that whenever you repay the loan, if the value of your home has increased you will need to give the HomeBuy Agent their share of the increase. You have to pay back the full amount of the loan and any increase in one go – you can’t pay it in stages.

Can I move to a new home without having to repay the loans?

When you sell your home, you will always have to repay the HomeBuy Agent’s loan, including the HomeBuy Agent’s share of any increase in the value of your current property. But you may be able to apply for another Open Market HomeBuy loan to buy a new home. Your HomeBuy Agent will be able to tell you if you are still eligible for the scheme.

And remember you may also have to repay the mortgage lender’s loans if you move home. This may mean paying early repayment charges. The about this mortgage document will give you this information. Bear in mind that you may have to repay the loans earlier than you planned – you may need to sell your home to move with your job for example.

Could I lose money with this scheme?

In some cases when house prices fall, you could owe more than the house is worth. This is known as ‘negative equity’. It would make it difficult for you to move. This is a risk with any mortgage.
Open Market HomeBuy gives you some protection against negative equity. If the money from the sale of the house won’t pay off all the loans, then you don’t have to pay the HomeBuy Agent their full share – just what is left over after everything you owe to the mortgage lender has been paid. But in these circumstances you won’t get any money from the sale – whatever money there is must go towards paying as much of the HomeBuy Agent’s loan as possible. All the loans secured against your home need to be paid off before you get any of the money from the sale – you are last in line. So any money you put down as a deposit could be at risk.

What if I want to switch to a different mortgage deal?

If you want to switch the standard mortgage loan to a different deal, you will have to pay back what you owe on the mortgage lender’s equity loan as well. That means paying back the standard mortgage loan, the original equity loan and the mortgage lender’s share of any increase in the value of your home. You will need to think about whether you can afford to do this. You may also need to pay an early repayment charge.

Link to Previous article : Open Market Home Buy Scheme - III

Remortgage Cost

Continuing further from the previous article on Remortgage: Changing your mortgage plan, let's today talk about how much it will cost you for remortgaging.

What will remortgage cost you?
Even if there are no early repayment charges, your current lender might make an administration charge (sometimes known as an exit administration fee).
If you're switching to a new lender, they will insist on the same legal work your old lender did, to make sure the property offers proper security for them.

Lenders may also want an up-to-date valuation on your property.
With some deals the lender may pay some of these as an incentive to get your custom. But bear in mind you may have to pay back their value if you pay off your mortgage early.
Remember, when you've found a good deal, it's worth going back to your current lender to see if they will offer you a similar deal to keep you as a customer. This will save you some bother in moving on and maybe some money too.

Top tips
- Check your annual mortgage statement to see what you've paid and what's outstanding.
- Review your mortgage whenever a special deal ends.
- Don't assume that your current lender will keep you up to date with their best deals.

Remortgaging – changing your mortgage plan, not your home

Today, let’s start a new topic which is quite common practice for UK home owners – REMORTGAGING. Remortgaging means you change the mortgage plan, either switch to another mortgage plan from the same mortgage firm, or take a new mortgage scheme from another mortgage lending firm. In either case, your home remains intact – you only switch you mortgage plan or scheme on the same home or house.

Once you've gone through the process of finding your mortgage - you probably won't be in a great hurry to do it all again!
However, a year or two down the line, it can be an expensive mistake NOT to look around the mortgage market to see what's on offer. Mortgage lending firms work hard to attract new customers, but often aren't so good at making sure their current borrowers continue to get the best deal.

Should you look around now?
- If you're already on a special deal, then you should probably not worry about remortgaging. The penalties you'd have to pay to break the deal, and the other costs involved, may be quite high and it may mean there's no point in remortgaging.

- But if you're paying your lender's standard variable rate and there are no penalties involved you should certainly look at what else is on offer.

Find your most recent mortgage statement – your mortgage lender or mortgage firm will send you a statement once at least each year - which will tell you what you're paying now, and how much you still owe. It will also tell you where early repayment charges apply and the date they stop.

Are you getting a really good scheme to switch?
Use the information in your statement to compare your mortgage with others, both from your current lender and from other lenders. You can use any online Mortgage tables to compare features and rates.
You can then go directly to the lenders, or visit a mortgage broker and get a keyfacts document about this mortgage document for the mortgages you're interested in, so you can check you'll save money by switching.