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We can help with re-mortgaging

Introduction

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 a result most people regularly review their finances with the help and support of a mortgage advisor or their mortgage provider.

Download our guide to remortgaging and further advances here:

Re-mortgagning and further advances

There are three possible reasons you may want to do this:

Re-mortgage (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) 

Re-mortgage with a further advance

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 (please refer to our “Guide to Administration Charges” 

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 and, 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.

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. (i.e. 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 

Customer’s share: 75% 

Original value of customer’s share: £75,000 

Current property value: £150,000 

Customer’s share: 75% 

Current value of the customer’s share: £112,500 

Current value of customer’s share less original vale of share: £112,500 - £75,000 = (Customers increased share value £37,500) 

The most allowed to borrow would be: £28,125 (£37500 x 75%)

What are the likely costs involved?

The charges will vary according to the reasons for your re-mortgage and the notices that need to be registered against your property.

Administration fee Payable for all re-mortgages 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 the potential cost which we will have to charge you for.