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  • Writer's pictureRicky Gandhi

How to Remortgage Your Home for a Lower Deposit

Updated: Jun 27, 2023

Table of contents

  • Introduction

  • Assessment of Current Mortgage

  • Research

  • Negotiation with Mortgage Broker

  • Application Process

  • Closing the Deal

  • Conclusion

Introduction

Welcome to the ultimate guide on how to remortgage your home for a lower deposit! Remortgage is the process of switching your existing mortgage to a new lender, usually in search of a better deal with lower interest rates. There are many common reasons to remortgage, including the need to raise funds, debt consolidation, or simply to save money. However, one key aspect that is often overlooked is the importance of lowering your deposit. This can not only save you thousands of dollars in upfront costs but can also make your monthly mortgage payments more affordable. So how exactly can you achieve this? Follow our step-by-step guide to find out!


How to remortgage



Assessment of Current Mortgage

Assessment of Current Mortgage: Before remortgaging for a lower deposit, it’s important to assess your current mortgage situation. Check your current mortgage balance, calculate your equity, and research your current mortgage terms. Understanding your current mortgage terms will help you determine if a remortgage is the right move for you. Have you been paying off your loan as planned, or have you defaulted on payments? It could make a big difference to how your application is received.


Let's find the right mortgage for you!



Research

Research is crucial in finding the best deal for remortgaging your home and lowering the deposit. How to remortgage ? Start by searching online and comparing interest rates and deposit requirements across different lenders. Don't be afraid to negotiate with your current lender and compare their offer with others. Remember, the goal is to get the best possible deal without compromising on the terms. Keep an eye out for special promotions and incentives offered by lenders that may further lower your deposit.

Negotiation with Mortgage Broker

Negotiation with Mortgage Broker: So, you've done your research and found a good deal with lower deposit requirements. Congrats! Now it's time to present a strong case to your Mortgage Broker to convince them to lower the deposit on your mortgage. Start by highlighting your strong credit score and history of on-time payments. Be confident when presenting your case. Don’t forget to negotiate the terms of the mortgage, such as interest rates or a longer repayment period. Once you have successfully presented your case and negotiated the terms, don't forget to get an agreement in principle. This is a conditional agreement from the lender that assures you of getting the mortgage you need, provided all the information you provided in your application is correct. Remember, your goal is to lower your deposit, so keep your negotiation focused on that. And best of luck! You got this!

Application Process

Once you’ve found a good remortgage deal, the next step is to submit an application. This involves filling out forms and providing supporting documents to your lender. Remember to double-check everything before submitting to avoid any issues later on. After submitting, an appraisal and inspection will be conducted on your home to assess its value. This is to ensure that the property is worth the amount you’re borrowing. Keep in mind that this part of the process can take some time, so be patient and don't lose hope.

How to remortgage your home quickly?

Closing the deal involves accepting the mortgage offer and waiting for final approval. This marks the end of the remortgaging process, hooray!

Conclusion


Congratulations! You made it through the remortgage process. You have now lowered your deposit and secured a better rate. Sit back, relax, and enjoy the savings.



Let's find the right mortgage for you!


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