We can help with remortgaging
When you originally bought your home, you may have financed the purchase with the help of a mortgage. Your financial situation may have changed and, as such, most people regularly review their finances with the help and support of a mortgage advisor or their mortgage provider.
There are lots of mortgage deals available and we are aware that our customers want to take advantage of them. As we have a financial interest in your home it is important that we are aware of and agree to any changes to your lender or any increase in how much you are borrowing.
There are three possible reasons you may want to do this:
- Remortgage (to move from your existing lender to another lender, but without increasing your borrowing)
- Further advance (stay with the same lender, but to borrow additional money)
- Remortgage with a further advance
In some circumstances this can involve adding or removing someone from the mortgage and lease. This is known as a deed of transfer or transfer of equity. This will require legal advice as it involves a change to your lease.
Once you have carefully considered your options and decided what you would like to do, you should consult your mortgage lender or a mortgage advisor to discuss your lending needs. Family Mosaic work with a panel of mortgage advisors and solicitors and we are happy to pass their details on to you if you would like this help.
How much can I borrow against the value of my home?
This depends on the type of tenure you have with us:
Shared Ownership – You can borrow up to 80% of the value of the share you own in your home.
For example, if your home is valued at £100,000 and you own 50% (£50,000), you can borrow up to 80% of the £50,000 (in this case £40,000). This includes your existing mortgage and any other loans you may have secured against your home.
Equity loan – You can borrow up to 75% of the increase of the equity in your share of the property.
- Original property value: £100,000
- Your share: 75%
- Original value of your share: £75,000
- Current property value: £150,000
- Your share: 75%
- Current value of the your share: £112,500
- Current value of your share less original value of share: £112,500 - £75,000 = £37,500 (Customers increased share value)
- The most you can borrow would be: £28,125 (£37,500 x 75%)
What we need you to provide
To approve a re-mortgage or further advance we will require you to provide us with the following:
- A copy of your mortgage offer from your proposed new lender
- Written confirmation of the current value of your home from your new lender (this can be either a copy of the lender’s valuation report, or some lenders show this on the mortgage offer)
- Written confirmation from your existing lender of the outstanding balance (lenders sometimes refer to this as the redemption statement)
- A short written explanation from you advising us why you want to change lender (if applicable)
- A cheque to Family Mosaic for the administration work involved
If you are taking a further advance with your existing lender or re-mortgaging and taking a further advance you will need to provide this additional information:
- Written confirmation from you informing us why you want to increase your borrowing. If the additional borrowing is for home improvements, please give details of the home improvements you plan to make, together with quotes, invoices or receipts for the work being carried out.
- Approval of the works planned from our Asset Management team. Please contact our Asset Management team for a 'Right to Improve form' for completion. We have to ensure any home improvements meet with building regulations.
Important: All home improvements must be approved by our Asset Management team prior to commencement of any works.
If you are a Shared Ownership leaseholder, when you sell you will need to provide copies of the quotes and invoices so that the valuer can consider if the work carried out has increased the value. Please be aware most purchasers will only pay the current market value of a property, which is the value of the property in its condition at the time of sale. Not all improvements will increase the value of your home.
If you are staying with the same lender and just changing interest rates, we don't normally need to approve this. If in doubt please contact us to discuss.
Equity loan leaseholders may only apply for further advances for home improvements. The scheme does not allow customers to consolidate their debts.
If you own a share in the property, you must not exceed the current Housing Options household income requirement if you add a person to the mortgage and property.
What are the likely costs involved?
The charges will vary according to the reasons for your remortgage and the notices that need to be registered against your property.
- Administration fee - Payable for all remortgages and further advances.
- Notice of charge - Payable if you are changing lender.
- Notice of transfer - Payable if a person is added or removed from your mortgage / lease.
Your lender may charge fees for dealing with your mortgage application. You should contact them direct or via your mortgage advisor for details of their fees. You may have legal expenses in certain transactions.
In some circumstances, we may have concerns about a part of your application, and choose to contact our solicitors for their advice. We’ll let you know if we decide to do this and advise you of any potential cost to yourselves. Contact our resident sales team for more details.
Contact us about remortgaging
If you wish to proceed the process is fairly straightforward. You should send us all the information we need to process your request, along with the relevant administration fees.
We aim to give you a decision within five working days of receipt of all the necessary information.
For more information about how to re-mortgage, contact a member of our team at firstname.lastname@example.org.
Should you use a Broker to get a Mortgage?
Fewer banks, a growing loss of faith in banks’ ability to give sound advice and more complex mortgage rules mean that just over 60% home loans are now taken out through a broker.
Why Do You Need a Mortgage Adviser
A mortgage advisers role is to recommend a suitable mortgage and be able to justify why the particular mortgage they have chosen is right for you.