Complete Remortgage Guide for Taunton
Discover how remortgaging can help you secure better rates and optimize your financial position. Our expert advisors guide you through the entire remortgaging process in Somerset.
Remortgaging in Taunton can save you thousands of pounds. Whether your fixed-rate deal is ending or you want to release equity, understanding the remortgage process ensures you make the right decision for your circumstances.
Why Remortgage?
Homeowners in Taunton remortgage for several reasons. The most common is to avoid reverting to your lender's Standard Variable Rate (SVR) when your fixed deal ends. SVRs are typically 2-3% higher than competitive fixed rates, costing hundreds extra per month.
Common Reasons to Remortgage
- Secure Better Rates: Save money by switching to a lower rate when your deal ends
- Release Equity: Borrow against your home's value for home improvements or debt consolidation
- Overpayment Flexibility: Switch to products allowing larger overpayments without penalties
- Debt Consolidation: Combine expensive debts into your mortgage at lower rates
When to Remortgage
Start your remortgage search 3-6 months before your current deal ends. This timing allows you to compare the market, complete your application, and seamlessly transition to your new deal without reverting to the SVR.
Most lenders allow you to apply up to 6 months in advance while honoring today's rates. This protects you if rates rise before your current deal ends. If rates fall, you can sometimes switch to the lower rate or choose a different product.
The Remortgage Process
1. Assessment (1-2 weeks)
Review your current mortgage details, including remaining balance, remaining term, and any early repayment charges. Check your property's current value - Taunton property prices may have increased since you purchased, improving your loan-to-value ratio and unlocking better rates.
2. Compare the Market (1-2 weeks)
Search whole-of-market for the best remortgage deals. Consider the interest rate, product fees, early repayment charges, and whether you can port the mortgage if you move. Working with advisors who access all lenders ensures you don't miss better deals from smaller building societies or specialist lenders. Check our guide to current mortgage rates in Taunton for up-to-date market information.
3. Application and Valuation (2-4 weeks)
Submit your application with proof of income, bank statements, and ID. The lender arranges a property valuation to confirm your Taunton home's value supports the requested loan. Most valuations are desktop reviews for straightforward remortgages.
4. Legal Work (4-8 weeks)
If switching lenders, solicitors handle the legal transfer. Your new lender pays off the old mortgage on completion day. If staying with your current lender (product transfer), there's usually no legal work required.
Costs to Consider
- Early Repayment Charges: If leaving before your deal ends (typically 1-5% of outstanding balance)
- Arrangement Fees: £0-£2,000 for the new mortgage product
- Valuation: Usually free for remortgages, or £250-£500
- Legal Fees: £300-£800 if switching lenders (often covered by cashback)
Product Transfer vs Remortgage
A product transfer means staying with your current lender but switching to a new deal. This is simpler and cheaper (no legal fees or valuation) but limits you to your lender's products. Compare your lender's retention deals against the whole market - you might save more by switching despite the costs.
Get Expert Remortgage Advice
Our Taunton-based advisors compare the entire market to find your best remortgage deal. We handle the application, liaise with lenders and solicitors, and ensure your remortgage completes smoothly and on time. Understanding how much you can borrow is also essential when considering releasing equity through a remortgage.