Remortgage guide
Remortgage Guide
Understand how remortgaging works, when to review your options and what lenders may check before you switch mortgage deals.
Remortgaging can help you review your rate, term, borrowing needs and lender options before your current deal ends.
Useful reminder: A rate switch with your current lender may also be worth comparing.
Quick answer
What does remortgaging mean?
Remortgaging means moving your mortgage from one deal to another, either with a new lender or sometimes by changing product with your current lender. People often remortgage when their fixed or tracker deal is ending, when they want to review their monthly payments, or when they need to borrow more. A new lender will usually check your affordability, credit profile, property value and mortgage requirements. Remortgaging is not always the right option, so it is important to compare rates, fees, early repayment charges, legal work and whether a rate switch with your current lender may be simpler.
Important: Your home may be repossessed if you do not keep up repayments on your mortgage.
It is sensible to review options before your current mortgage deal ends.
A new lender will usually assess income, outgoings, credit history and property value.
Product fees, legal fees, valuation costs and charges can affect the overall deal.
A mortgage adviser can compare remortgage and product transfer options.
Key points
Key takeaways about remortgaging
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Main guide
What is a remortgage?
A remortgage is when you move your mortgage onto a new deal. This often means switching from your current lender to a new lender, although many people also compare this with a product transfer or rate switch from their existing lender.
Homeowners usually review remortgage options when a fixed, tracker or discounted deal is coming to an end. If you do nothing, your mortgage may move onto your lender’s standard variable rate, which could be higher than your current payment or other available deals.
Why people remortgage
People remortgage for different reasons. Some want to secure a new rate before their current deal ends. Others want to raise extra funds, change their mortgage term, adjust monthly payments, remove or add someone to the mortgage, or review their options after their property value has changed.
A remortgage can be useful, but it is not automatically the best choice. The right decision depends on your current mortgage, available deals, fees, charges, affordability, property value and future plans.
Your home may be repossessed if you do not keep up repayments on your mortgage.
What do lenders check when you remortgage?
If you move to a new lender, the lender will usually assess your application in a similar way to a new mortgage. They need to check that the mortgage is affordable and that the property meets their criteria.
Lenders may review:
- your income and employment status
- your regular spending and credit commitments
- your credit history
- your current mortgage balance
- the property value and loan-to-value
- the mortgage term you want
- whether you want to borrow extra
- the reason for any additional borrowing
- the property type and condition
Your circumstances may have changed since your last mortgage application. A new job, self-employment, reduced income, childcare costs, car finance, credit cards or missed payments could affect what is available.
Your property value also matters. If your home has increased in value or your balance has reduced, your loan-to-value may have improved. This can sometimes open up different product options, subject to lender criteria.
If your circumstances are more complex, it can be useful to check lender criteria before submitting applications.
This is a simplified example. Timescales, checks and fees can vary by lender and circumstance.
When should you start looking?
It is often sensible to review your mortgage several months before your current deal ends. This gives time to compare your current lender’s options with wider remortgage deals, gather documents and complete any required legal or valuation work.
Some lenders allow you to secure a new product in advance. Exact timescales vary, so it is worth checking early rather than waiting until your deal is about to end.
Should you remortgage or rate switch?
A remortgage to a new lender may offer wider choice, but it usually involves more checks. A rate switch with your current lender may be quicker and simpler, but only gives access to that lender’s products.
The best option depends on the total cost and your circumstances. A lower rate with a high fee may not always be cheaper. A slightly higher rate with lower fees or useful incentives may work better for some borrowers.
Borrowing more when remortgaging
Some homeowners remortgage to raise extra funds, for example for home improvements, debt consolidation, buying another property or supporting family. Whether this is possible depends on affordability, property value, purpose of borrowing and lender criteria.
Debt consolidation needs careful thought. It may reduce monthly payments in some cases, but it could increase the total amount repaid if borrowing is spread over a longer term. It may also secure previously unsecured debts against your home.
Early repayment charges
If you remortgage before your current deal ends, an early repayment charge may apply. This can be significant, so it should be included in any comparison.
Sometimes it may still be worth switching early, but this needs careful calculation. In many cases, it is better to line up the new deal to start when the current deal ends.
Common mistakes to avoid
A common mistake is waiting until the last minute. This can limit your choices and may result in time on the standard variable rate.
Another mistake is focusing only on monthly payment without considering fees, term, flexibility and future plans. If you extend the mortgage term to reduce payments, you may pay more interest over the life of the mortgage.
How The Mortgage Hive can help
The Mortgage Hive can help you review your current mortgage and compare remortgage options. We can look at your existing balance, deal end date, property value, current payments and what you want from your next mortgage.
We can also compare a full remortgage with a product transfer from your current lender.
Choosing the right route
The right route is not always the one with the lowest headline rate. Fees, early repayment charges, legal work, valuation, cashback, flexibility and future plans can all affect the overall value.
If your circumstances have changed, lender choice becomes even more important. Some lenders may be more comfortable with self-employment, variable income, recent job changes or credit issues than others.
Fee-free mortgage advice
The Mortgage Hive provides whole-of-market mortgage advice and does not charge a broker fee. We can explain your options in plain English and help you understand whether remortgaging, rate switching or waiting may be more appropriate.
What to do next
If your current mortgage deal is due to end, gather your latest mortgage balance, current rate, deal end date and any early repayment charge details. This gives a clear starting point for comparing your options.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Useful questions to ask your adviser.
- When does my current mortgage deal end?
- Will I pay an early repayment charge if I switch now?
- Should I remortgage or rate switch with my current lender?
- How does my property value affect my options?
- What fees, legal costs or valuation costs should I compare?
- Can I borrow more, and how would that affect affordability?
- How early can I secure a new deal before my current one ends?
MORTGAGE-READY STEP
WHAT IS A DECISION IN PRINCIPLE?
A Decision in Principle, sometimes called an Agreement in Principle or Mortgage in Principle, is an initial indication from a lender of what they may be prepared to lend based on information provided at that stage.
It can help you understand a possible budget and show estate agents that you have started the mortgage process. It is not a full mortgage offer and can still change once the full application, documents, credit checks, valuation and underwriting are completed.
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- Self-employed income
- Adverse credit cases
Speak to a mortgage broker before you apply.
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Lender access
Access to over 100 lenders.
We can help you explore options from a wide range of mainstream and specialist lenders, giving you a clearer view of what may be possible based on your circumstances.
Process map
How the mortgage advice and application process usually flows
This visual route map shows the usual stages from an initial conversation through to application, offer and completion.
We look at whether you are buying, remortgaging, moving home, investing or dealing with a more complex situation.
Income, outgoings, deposit or equity, credit history, property type and lender requirements are reviewed.
Suitable mainstream and specialist lenders are compared to see what may be possible based on your circumstances.
Documents are prepared, fees and repayments are checked, the application is submitted and lender questions are handled through to offer and completion.
WHY CLIENTS CHOOSE THE MORTGAGE HIVE
WHY CLIENTS CHOOSE THE MORTGAGE HIVE.
Mortgage decisions can feel confusing, especially when lender criteria, affordability and rates all need to be considered. The Mortgage Hive helps make the process clearer, with fee-free mortgage advice and access to a wide range of lenders.
FEE-FREE ADVICE
We do not charge an advice fee for mortgage advice, so you can speak to us before deciding your next step.
WIDE LENDER ACCESS
We can compare options from over 100 mainstream and specialist lenders, depending on your circumstances.
CLEAR GUIDANCE
We explain the options, costs and criteria in plain English, without pressure or jargon.
FLEXIBLE SUPPORT
Speak to us online, over the phone or face to face, whether you are buying, remortgaging or exploring buy-to-let.
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Trusted sources used to support this guide.
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FAQs
Common remortgage questions.
What does remortgaging mean?
Remortgaging means moving your mortgage onto a new deal, usually with a new lender. It is often done when a fixed or tracker deal is ending. You may remortgage to secure a new rate, borrow more, change the term or review your mortgage options.
When should I start looking for a remortgage?
It is sensible to review your options several months before your current mortgage deal ends. This gives time to compare deals, gather documents and complete any valuation or legal work. Waiting too long could mean moving onto your lender’s standard variable rate.
Is remortgaging the same as a rate switch?
No. A rate switch usually means choosing a new product with your current lender. A remortgage usually means moving to a new lender. A rate switch can be simpler, but a remortgage may offer wider choice, subject to checks and criteria.
Will I need affordability checks to remortgage?
Yes, a new lender will usually check affordability, income, outgoings, credit history and property value. If your circumstances have changed since your last mortgage, this could affect what is available. Your current lender may have simpler rate switch options.
Can I borrow more when I remortgage?
You may be able to borrow more, subject to affordability, property value, loan-to-value and lender criteria. The lender will also consider the reason for the extra borrowing. Borrowing more can increase monthly payments and the total amount repaid.
Are there fees when remortgaging?
There can be fees, including product fees, valuation fees, legal costs and possible early repayment charges. Some remortgage deals include free valuation or assisted legal work, but this varies. It is important to compare the overall cost, not just the rate.
Can The Mortgage Hive help with remortgaging?
Yes. The Mortgage Hive can compare remortgage options and rate switch options from your current lender. We do not charge a broker fee, and we can help you understand costs, criteria and timing before your deal ends.
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Deal ending soon?
Review your remortgage options early
Remortgaging can help you review your next mortgage deal, but the best route depends on rates, fees, criteria and your plans. The Mortgage Hive can help you compare your options clearly.
Important mortgage information
Your home may be repossessed if you do not keep up repayments on your mortgage. Mortgage approval is subject to status, affordability and lender criteria.
Interest rates, fees and criteria can change, and early repayment charges may apply. This guide is for general information only and is not personal financial advice.