The benefits of remortgaging (And what to be aware of)

A guide to helping you understand the remortgaging process and how you can benefit from switching mortgage deals at the right time.

What is a remortgage in simple terms?

A remortgage is simply an application for a new mortgage deal with a different lender on a home you already own. Your new mortgage replaces your old one.

When should I remortgage?

You can remortgage at any time, but you will want to consider when your current mortgage deal is ending and when will be the best time to save money with remortgaging. In these scenarios you should consider remortgaging:

  • If you are on a lender’s standard variable rate – these rates can change regularly and there maybe more affordable options that are better for your circumstances.
  • If your fixed rate deal is coming to an end in the next six months – to avoid going onto the lender’s standard variable rate, it is wise to look into remortgaging options to explore more affordable deals that are better for your circumstances.
  • If you want to change parts of your mortgage e.g. borrowing more, adding or removing a party to the mortgage, reducing the mortgage term or changing the type of mortgage product you have.

What are the benefits of remortgaging?

  • You have a better chance of getting the best deal available.  
  • You ensure your mortgage terms are up to date and suited to your plans.  
  • You can keep fixing your repayments if that’s what you like to do.  
  • You can keep reducing the mortgage term to pay it off sooner than your current mortgage term states.  

What should you be aware of with remortgaging?

  • Be aware some mortgage advisers charge fees, and some lenders charge exit fees. You’ll need to consider the T&C’s small print.  
  • You will have to involve a solicitor if you’re changing mortgage lender – this means the process can take longer than switching deals with your current lender, and they will charge a fee. But keep in mind almost all mortgage deals either give you cash back to cover this or the lender covers the standard fees for you.
  • Just like when you applied for your mortgage to buy the home, there will be a full mortgage application. This involves:

- A credit check

- The mortgage lender will need to value your home

- The mortgage underwriter will need to see your documents (e.g. ID, payslips and bank statements) so they can approve your application

To find out if remortgaging is the right thing to do, speak to our mortgage team for free and they’ll be happy to answer any questions you have. Your home may be repossessed if you do not keep up with repayments on your mortgage.  

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