Remortgages Guides & Advice

Remortgaging means replacing the mortgage on a property with a new mortgage, usually from a different lender. People may remortgage when a deal ends, to seek different terms, change the mortgage structure or raise additional funds. Switching is not always beneficial once fees, early repayment charges and the remaining term are considered. A product transfer with the existing lender may also be an option and should be compared where relevant.

It is often sensible to review the mortgage several months before the current deal ends. This provides time to compare options, gather documents, complete valuation and legal requirements, and secure a product if rates are changing. Starting too early may limit products or involve early repayment charges, while leaving it too late can result in moving onto the lender's reversion rate. Exact timing depends on the current mortgage and lender.

Yes, but an early repayment charge may apply. Whether paying that charge is worthwhile depends on its amount, the remaining deal period, the new mortgage costs and your objectives. A lower new rate does not automatically mean a saving once charges and fees are included. Request a redemption statement and compare total costs over an appropriate period before deciding.

Additional borrowing may be available for purposes such as home improvements, buying out another owner or other acceptable needs. The lender assesses affordability, loan-to-value, credit profile and the proposed use of funds. Increasing a mortgage raises the secured debt and may extend repayment, so the total interest cost can be substantial. Alternatives should be considered, particularly for shorter-term borrowing.

Some lenders permit capital raising for debt consolidation, subject to affordability and criteria. Converting unsecured borrowing into a mortgage can reduce monthly payments but may increase the total amount repaid, especially if the debt is spread over a longer term. It also secures the borrowing against your home, which increases the consequences of missed payments. Debt consolidation requires careful assessment and is not suitable for everyone.

A lender normally requires a valuation, although this may be automated or carried out remotely. Legal work is also usually needed to repay the existing mortgage and register the new lender's charge. Some remortgage products include a standard legal service or cashback contribution. Additional legal work, such as changing ownership, may incur separate fees and take longer.

Possibly. A new lender conducts a fresh affordability and credit assessment, so reduced income, increased commitments or recent credit issues can affect the options available. Staying with the existing lender through a product transfer may require fewer checks in some circumstances, although this depends on the requested changes and lender policy. Review options before the current deal ends rather than assuming a switch will be available.

No. Product fees, valuation or legal costs, incentives, early repayment charges, overpayment facilities and the period used for comparison all affect value. A fee-free product with a higher rate may cost less for a smaller mortgage, while a lower rate with a fee may suit a larger balance. Compare the total cost and suitability of the mortgage rather than focusing only on the headline rate.