Frequently asked questions
Remortgaging the property you're already in may not be as complex as moving home, but it can still bring up some questions. So, to help you along the way, we've answered some of the questions we get from people in the same boat as you.
Before you do anything else, you need to know how much your property is worth. The best way to find out is to get your house valued by a qualified surveyor. They'll visit your home and give you an accurate value.
You can also get an estate agent to estimate the value of your property - or do your own research. Keep an eye on what similar properties near you are going for.
Remember, this is only a guide to get you started. When you apply to remortgage with Sainsbury's Bank, we'll always do our own valuation to confirm what your property is worth and what we may be able to lend you.
Most people remortgage to get a better interest rate at the end of their promotional rate. But the timing is up to you.
When your promotional rate ends, you might want to remortgage to avoid switching on to the standard variable rate and paying more each month. If that's what you want to do, it's a good idea to start sorting out your new mortgage about three months before your promotional rate stops. That will give you enough time to switch before the higher interest rate kicks in.
You can remortgage before your promotional rate ends if you want to. But always check whether you'll have to pay an early repayment charge or other exit fees before you do. Remortgaging could work out better even with the extra fees so it's worth checking. And remember to factor in all the costs of remortgaging before you go ahead.
There are a few steps to follow for a smooth remortgage:
1. Work out how much you can afford to pay
2. Check what other costs are involved
As well as your new monthly payments, check if there are exit fees or early repayment charges to leave your current mortgage deal, and fees to sign up for your new mortgage. Some you can add to your mortgage and some you pay upfront.
Check our fees and charges (PDF, 122KB) to help you budget.
If you remortgage with us, you might be able to get one of our fee-assisted mortgages to lighten the load a little.
3. Find a new mortgage
This can be a daunting task, as there are so many to choose from. And you need to make sure you pick the right mortgage for your circumstances. Our qualified mortgage advisers can help, just call on 0345 111 8010 ** to go through your options.
4. Apply for a new mortgage
When you call us, we'll go over what you need and what you can afford. Then we'll recommend a mortgage and send you a mortgage illustration. Read this carefully to check all the details - like your interest rate, your monthly payments and any fees.
If you're happy, you can start gathering everything you need to apply and we'll take you through the process.
A decision in principle (DIP) gives you a good idea of whether we can give you a mortgage, and how much we might lend you. So it helps you get your finances in order before you get going with the full mortgage.
To give you a DIP, we will take important information from you, including your income and expenditure, so it is important that you provide accurate figures. We will also process a soft credit check to ensure your credit rating is sufficient enough to support the lending. Whether or not we will be able to provide this level of borrowing will always be subject to the full mortgage application
You might have to pay your current mortgage company an exit fee or an early repayment charge. So it's best to check with them about those so you know what to expect.
Depending on the mortgage you go for, we may also charge some fees to set it up for you.
Have a look at our fees and charges (PDF, 122KB) to help you budget.
If you do remortgage with us, you might be able to get one of our fee-assisted mortgages to lighten the load a little.
That depends on your circumstances - and it's not a decision to take lightly. It might seem like a great way to tidy up your finances. But whether it's a good thing to do will depend on what debt you have left to pay off and how long you have to pay it. You also need to think about what effect it will have on your mortgage - you could end up paying more interest.
Other options may be available which may be more appropriate for you to consider. These might include further borrowing from your current lender, a second charge mortgage or an unsecured loan.
The best thing to do is get advice. You can speak to one of our Mortgage Advisers, who will be able to give you advice on the most suitable Sainsbury’s Bank mortgage based on your needs and circumstances. Please call us on 0345 111 8010 ** to go through the details.
Think carefully before securing other debts against your home.
You can find out by contacting a credit reference agency, like Experian, Equifax or Callcredit. They may charge you to access your credit report.
If you always keep up with your regular payments - for everything from bills to credit cards and mobile phone contracts - chances are your credit history will be good.
But there are things that can trip you up. Like a payment mix up, even if it wasn't your fault. Or even your partner's or flatmate's credit history.
So always check your credit score before a mortgage company does. You might be able to put it right if you need to.
The right mortgage for you will depend on your personal circumstances and what your needs are.
But the best thing to do - whether you want to get a better rate, change the type of mortgage you have, borrow more money, consolidate your debts or pay less every month - is get some advice.
You can call us on 0345 111 8010 **. One of the team will be on hand to help you and go through the mortgages we have to suit you.
Think carefully before securing other debts against your home.
Any difference between the value of your house and the balance outstanding on your mortgage is known as equity. So if your property is worth £200,000 and you have a £150,000 mortgage, your equity is £50,000 or 25%.
Having 25% equity means that you'll need to get a mortgage with 75% loan to value (LTV). As a rule of thumb - the lower your LTV, the lower mortgage rate you'll be charged.
Our qualified mortgage advisers are here to help so if you want to understand your options or you have any questions, give them a call on 0345 111 8010 **.
collapsed My property is a new build, which building warranties are acceptable to Sainsbury's Bank in this instance?
An acceptable New Build/Self Build warranty must be in place for any property which has been built or converted in the last 10 years, or is to be occupied for the first time. Acceptable warranty schemes include:
- NHBC Buildmark
- NHBC Solo (discontinued for New Builds from 2016)
- Zurich Municipal
- Castle 10 New Home Warranty – provided by Checkmate
- LABC New Home Warranty
- Premier Guarantee for New HomesBuilding Life Plan Ltd
- CRL Management Ltd
- Certification by certain professional consultants may be accepted subject to it being in standard Council of Mortgage Lenders (CML) format, where the property has been built/converted within the last 6 years.
Professional Consultant's Certificates may also be accepted, where they are signed by:
- A qualified Architect, who is a corporate member of the Royal Institute of British Architects, or
- A qualified Chartered Building Surveyor, who is a corporate member of the Royal Institution of Chartered Surveyors
Evidence of appropriate valid personal indemnity insurance will be required and the certificate must be for the benefit of the borrower(s). The Architect/Building Surveyor must confirm that he has supervised the whole project.