Guide to remortgaging

There are several reasons why you might be considering remortgaging. Perhaps your current fixed-rate term is ending, you’d like to change the terms of your current mortgage, or you’d like to borrow more money. Whatever your reason for looking at remortgaging, this helpful guide will tell you everything you need to know.

In this guide

What does remortgage mean?
Why do people remortgage?
Can I remortgage my house?
How does remortgaging work?
What’s the process of remortgaging?
How long does it take to remortgage?
Can I remortgage my house with the same lender?
How long does a remortgage take if you’re staying with the same lender?
Do you need a solicitor to remortgage?
How much are remortgage solicitor fees?
How much does remortgaging cost?
When can you remortgage?
Can you remortgage early?
How soon an you remortgage before fixed rate ends?
When you remortgage is your house revalued?
Can you remortgage and borrow more? How to remortgage to release equity
Can you remortgage to pay off debt?
Is it better to remortgage or get a loan?
I own my house outright, can I remortgage?
Remortgage payment calculator
When’s the best time to remortgage?
Should I remortgage now?
Does a secured loan affect remortgaging?
How easy is it to remortgage?
Do you pay stamp duty on a remortgage?
Can I remortgage with credit card debt?
Can you remortgage during a fixed-rate period?

What does remortgage mean?

Remortgaging means getting a new mortgage agreement. Most people will be looking to remortgage to get a new fixed-rate deal when their existing fixed rate is coming to an end, but you may be considering remortgaging for other reasons.

Why do people remortgage?

Fixed-rate mortgage deals will offer a cheaper interest rate for a fixed period of time (usually 2 years or 5 years). After the fixed-rate period ends, you will revert to the standard variable rate. This means your mortgage repayments are likely to become more expensive and will be changeable. Most people will choose to remortgage when their existing fixed-rate deal comes to an end.

You may also need to remortgage if you’re moving house and your current mortgage is not portable. This will mean you cannot transfer your current mortgage to your next property and instead need to take out a new mortgage. There may be early repayment charges to pay in this scenario.

Another reason homeowners might consider remortgaging is if they would like to borrow more money. You often won’t need to do a full remortgage for this. Instead, your lender may be willing to consider additional borrowing as a separate mortgage pot alongside your main mortgage product.

Can I remortgage my house?

Whether or not you can remortgage your house will depend on several factors, including your financial situation, the value of your property, and your personal circumstances (eg. age, employment status etc.). If nothing substantial has changed since you took out your last mortgage, it’s unlikely that you will have any problems securing a new deal.

If you’re considering remortgaging, you can either speak to your current lender or seek independent financial advice.

How does remortgaging work?

If you choose to remortgage, you will need to find out about the new mortgage products available to you. You can either do this yourself or use a mortgage broker. The benefit of using a mortgage broker is that they will be able to advise which mortgage products you’re likely to be accepted for.

What’s the process of remortgaging?

The process of remortgaging can feel a little overwhelming. We’ve broken it down into a simple step-by-step process.

Find out about your current mortgage

As a first step, you’ll need to gather some information about your current mortgage. If you’re currently on a fixed-rate deal, when does it come to an end? Is there any early repayment charge if you remortgage before the end date?

Explore your options

You can speak to your current mortgage lender about your options for remortgaging, but you might also want to explore what other lenders can offer by working with a mortgage broker. Remember to consider any product fees, interest rate, monthly repayments and total cost over time when comparing which product might be the best choice for you. Your mortgage advisor will be able to help you with this.

Mortgage application

Once you’ve decided on a new mortgage product to apply for, you’ll need to complete the mortgage application.

The application will usually include:

Personal information such as name, date or birth, proof of address, marital status and details of nay dependents.
Property information, including the property address, value, number of bedrooms and whether the property is freehold, leasehold or shared ownership.
Employment information, including your salary, how long you’ve been with your current employer and proof of income (usually a minimum of 3 payslips). If you’re self-employed, you’ll usually need to provide 2-3 years of company accounts.
Financial information, including details of any loans, credit cards or finance agreements. The lender will also carry out a credit check that will provide information on your credit score and financial history.
Affordability checks, which will include details of you monthly outgoings and information about your current mortgage, including what level of equity or deposit you have. You will usually need to provide your 3 most recent monthly bank statements.

Mortgage approval

If your application is approved, you will receive a mortgage offer that outlines the monthly costs and repayment terms.

Pay off your old mortgage

On the date your new mortgage starts, your new lender will settle your old mortgage. If you’re staying with the same lender, you will simply be transferred across to the new product.

How long does it take to remortgage?

How long it takes to remortgage will depend on how complex your application is and whether you’re perceived to be a ‘high risk’ borrower.

If you’re simply securing a new fixed-rate deal with the same lender, you should be able to complete the process in just a date or two. If you’re applying with a new lender, the process takes an average of 2-4 weeks.

Can I remortgage my house with the same lender?

Yes, you may be able to secure a new fixed-rate deal with your current lender when your existing one comes to an end. This can be a quicker and simpler option than applying for a new mortgage with a new lender, as there will be some information that you don’t need to resubmit. It’s important to note, however, that your current lender may not be able to offer the cheapest deal. There may be more competitive mortgage products that are more suited to your needs available with other lenders, so it’s always worth fully exploring your options before making a decision.

How long does a remortgage take if you’re staying with the same lender?

If you decide to remortgage with your current lender, they will already have your personal information, your property information and much of the financial information required. This means you may be able to remortgage very quickly and easily. Your current lender should be able to arrange a new fixed-rate mortgage product to tie in with the end of your current deal.

Do you need a solicitor to remortgage?

If you’re simply moving onto a new deal with your current lender, you’re unlikely to need a solicitor.

If you’re taking out a new mortgage with a new lender, you will need a solicitor to cover the legal process of transferring the mortgage. This will include registering the new mortgage with the Land Registry and carrying out all of the necessary title deed checks etc. Sometimes the legal process will be handled by the mortgage lender. This is something you’ll need to check with your mortgage advisor or directly with your lender.

How much are remortgage solicitor fees?

If you have to pay legal fees you can expect to pay around £300, but many mortgage lenders will include free legal fees in their arrangement or product fees.

How much does remortgaging cost?

There may be several costs associated with remortgaging, including:

Early repayment fees if your current fixed-rate mortgage deal hasn’t yet come to an end
Legal fees (if not covered in your mortgage product/arrangement fees)
Lender product fees or arrangement fees

When can you remortgage?

You can remortgage at any time, but if you’re still within the fixed-rate period of a mortgage you may have an early repayment fee to pay.

Most people will start looking for a new fixed-rate mortgage around 6 months before their current deal comes to an end.

Can you remortgage early?

Yes, you can usually remortgage early, but you may have to pay an early repayment charge. An early repayment fee is usually between 1% and 5% of the outstanding mortgage balance. As you get closer to the end of your mortgage deal, the early repayment charge will decrease. You can check your original mortgage illustration paperwork to calculate how much your early repayment fee would be or simply contact your mortgage lender to ask for an up-to-date figure.

How soon can you remortgage before fixed rate ends?

Most mortgage lenders will expect you to start looking for a new fixed-rate deal around 3-6 months before your current deal comes to an end. This will allow for a smooth transition between your current fixed-rate mortgage and your new mortgage.

When you remortgage is your house revalued?

If you’re changing mortgage lender, they will need to assess how much your property is worth. This value will be used to calculate your loan-to-value ratio and dictate which mortgage products and interest rates you’re eligible for.

The lender is likely to do a ‘desktop’ valuation, looking at the price other similar hoses in the area have sold for recently, but they may get a formal valuation carried out. This may be more likely if your property is particularly unusual or more difficult to value accurately.

If you don’t agree with the lender’s valuation of your property, you can request a revaluation. There may be an additional cost associated with this. Alternatively, you can get some estate agent valuations carried out and present the valuations to your lender. They are not obliged to use the valuations, but they may take them into consideration.

If you’re remortgaging with the same lender, they will usually use your previous valuation and simply apply the trend of property price growth or decline to calculate your new valuation. If you’ve carried out substantial improvement work that you believe will have increased the value of your property, you can request a new valuation.

Can you remortgage and borrow more? How to remortgage to release equity

When you remortgage, you may be able to borrow more money. This will depend on your financial circumstances, your affordability, and how much equity you have available in your home. You’re more likely to be able to borrow more money if you’ve paid off a substantial chunk or your mortgage or have a low loan-to-value ratio.

If you’re considering borrowing more money, you can speak to a mortgage broker or approach your current lender to see what your options are. Most lenders also have online remortgage payment calculators that may be helpful.

You don’t necessarily need to wait until your current fixed-rate deal comes to an end to be able to borrow more money on your mortgage. Most mortgage lenders will consider requests for additional borrowing at any point during your time with them. Your lender will consider your request and if they’re happy to proceed they will present you with a mortgage offer for additional borrowing. This will outline the terms of the agreement, including the monthly repayments and interest rate, which may be different from your main mortgage with them.

Can you remortgage to pay off debt?

Remortgaging can be an appealing option when considering the best way to pay off debt. Because a mortgage is taken out over a longer period of time, monthly repayment costs for the debt will be cheaper. This can relieve financial pressure. It is important to think about your short and long-term needs though. Repaying your debt over a longer period of time may mean that the overall amount you repay is higher.

Whether or not it is possible for you to remortgage to pay off debt will depend on your affordability and current loan-to-value ratio. Your current mortgage lender or a mortgage broker should be able to discuss your options with you.

Is it better to remortgage or get a loan?

Whether it’s better to remortgage or get a loan will depend on your individual circumstances, so it’s important to seek independent financial advice.

Remortgaging will allow you to repay the debt over a longer period, which will reduce the cost of your monthly repayments. You may end up paying more overall though.

A loan is likely to be repaid over a shorter period, which will make the monthly repayments higher but your debt will also be paid off quicker.

Mortgages usually offer a slightly lower interest rate and may be more suitable for a larger sum of money. Loans may be more suitable for smaller sums.

I own my house outright, can I remortgage?

Yes, if you own your house outright you may well be able to take out a mortgage on it. A mortgage lender will need to look at your personal circumstances, financial position and your affordability.

Remortgage payment calculator

Most lenders provide a simple remortgage payment calculator. You can also use one provided by one of the many comparison websites, like this one.

When’s the best time to remortgage?

The closer you get to the end of your fixed-rate deal, the less you’ll need to pay in early repayment charges. Most people will start looking for a new fixed-rate deal 3-6 months before their current fixed rate comes to an end. This will mean you’re able to coordinate the end of your current fixed-rate deal and the start of your new mortgage so you’re not liable for any repayment fees.

Should I remortgage now?

With mortgage interest rates starting to come down, you may be asking yourself “Is now a good time to remortgage?”. The truth is it will depend on your individual circumstances.

There are conflicting predictions, but general consensus seems to be that mortgage interest rates may come down a little further from current levels. However, with a huge amount of global uncertainty at the moment, this is difficult for anyone to assert with any real confidence.

If your current fixed-rate deal is coming to an end, it’s a good idea to explore your options and the mortgage products available to you. If a cheaper option becomes available between now and when your new mortgage product begins, there should be nothing stopping you from swapping to an alternative product.

Does a secured loan affect remortgaging?

Yes, all debt, loans and finance agreements will be taken into account when calculating your mortgage affordability. A secure loan is also likely to be considered when the mortgage lender calculated your loan-to-value ratio. A secured loan is money borrowed against the value of your property, so it’s a little like a second mortgage and will impact the level of risk your mortgage lender is taking. If your secured loan pushes you into a higher loan-to-value bracket, your interest rate is likely to be higher and your monthly repayments more expensive.

How easy is it to remortgage?

How easy it is to remortgage will depend on your financial and personal circumstances. If you have a good level of affordability, are not considered ‘high risk’, and your property is of standard construction and in good condition, remortgaging is unlikely to be difficult.

Do you pay stamp duty on a remortgage?

No, you do not pay stamp duty when you remortgage. Stamp duty is a tax paid when buying land or property. Ownership of the proeprty does not change when you remortgage and therefore no stamp duty is payable.

Can I remortgage with credit card debt?

You may be able to remortgage with credit card debt, but that will depend on the level of debt and how it impacts your affordability. It’s always advisable to get yourself in the best financial health you can before remortgaging. This will include paying off any debt. This will give you the most options and the best interest rates available to you. If, however, this is not possible, you may still be able to secure a mortgage with credit card debt.

Can you remortgage during a fixed-rate period?

Yes, you can remortgage during a fixed-rate period but you’re likely to incur early repayment charges.

There may be a few different reasons you decide to remortgage during a fixed-rate period. You may decide to move house and be unable to ‘port’ your current mortgage (which means transfer it to a new property). If this is the case, you’ll need to look for a new mortgage and take any early repayment charges into account when calculating the cost of moving house.

Another reason you may consider remortgaging during a fixed-rate period is if interest rates drop significantly and you want to lock in a lower interest rate deal. This might make sense if you’re nearing the end of your current fixed-rate period, and you’re concerned that interest rates might start to rise again. To consider this, the money you could save on the lower interest rate should be more than any early repayment charge.