Remortgage
If you’re thinking about remortgaging, we’ll explain what it is, how it can help you save or raise money, and what to expect.
What Is a Remortgage and How Does It Work?
Remortgaging simply means switching your current mortgage to a new deal either with your existing lender or a new one.
You’re not moving home; you’re just replacing your old mortgage with something that suits you better.
Many people remortgage to secure a lower rate, reduce monthly payments, change their mortgage term, or release equity for home improvements or other plans.
A mortgage broker can make the whole process easier. We compare options for you, explain everything in plain English, and support you from start to finish so nothing feels overwhelming.
remortgage guide
Types Of Remortgage
Standard Remortgage
A standard remortgage is when you switch your current deal to a new one, usually with a different lender. It’s commonly used to secure a better interest rate, change your mortgage term, or release equity from your home.
Product Transfer
A product transfer keeps things with your current lender but moves you onto a new deal. It’s often quicker and usually doesn’t require a full valuation, making it a smooth, simple option if it suits your needs.
We search 1000’s of products to find the best deal for you
Why choose UKMC to be your remortgaging broker?
Friendly, jargon-free approach
Friendly, jargon-free approachWe’re committed to making your remortgage process seamless, tapping into our years of experience with lenders, products, and options to simplify the experience. We do the heavy lifting for you.
Access to 1000s of products
Access to 1000s of productsOur team of remortgage advisors is dedicated to reviewing hundreds of lenders and thousands of mortgage products on your behalf. With the whole of the market at our fingertips, you can rest assured you’ll be presented with only the most suitable remortgaging options.
Assigned mortgage advisor
Assigned mortgage advisorTired of being passed from person to person when trying to remortgage your home? With UKMC, you’ll be assigned a dedicated mortgage advisor from the start, providing you with a single point of contact throughout your entire journey with us.
Free property insights and reports
Free property insights and reportsThanks to our online portal, you’ll have convenient access to a range of free property reports that can also be downloaded with ease.
Our reports cover:
- Broadband speed
- Energy efficiency rating
- Property price trends in your postcode
- Breakdowns of property types, tenure, professions, and crime in your area
- Flood risk
- Geology report
- Infrastructure projects
- Radon risk
Appointments that work for you
Appointments that work for youFed up with taking time away from work to speak to a remortgaging broker? At UKMC, we offer late-night appointments outside of the standard 9-5 hours, so you can speak with your dedicated case manager when you need to.
Remortgage Process
1. Affordability
If you’re switching lenders, they’ll run affordability checks to ensure your income comfortably covers the mortgage. It’s also a good time to check your credit file and tidy up any missed payments.
2. Research the market
We’ll compare staying with your current lender against deals across the wider market. Sometimes the best option is already with your existing lender — we’ll always be honest about what’s most cost-effective.
3. Choose the right deal
Interest rates, fees, and the equity you’ve built up all play a part in finding the right fit. We take the time to understand your priorities and guide you towards the deal that works best for your situation.
4. Application
We’ll handle the application process with you. If you’re switching lenders, they may need a valuation and documents such as payslips, bank statements, and ID.
5. Completion
Once the lender approves your application, they’ll issue your mortgage offer. Your solicitor will then complete the legal work, ensuring your old mortgage is paid off and any additional funds (if you’re releasing equity) are sent to you.
Why and When Should You Remortgage?
Your current deal is ending
When a deal ends, your lender may move you onto their standard variable rate, which is often more expensive. Remortgaging lets you explore better rates and potentially lower your monthly payments, especially if your home has increased in value.
Your needs have changed
Life moves on, pay rises, new plans, growing families, or simply wanting more flexibility. Remortgaging can help you find a deal that matches your current goals, whether that’s overpaying sooner or gaining more stability.
You want to release equity
If your home has gone up in value, remortgaging can free up funds for renovations, debt consolidation, or other important plans. Just remember releasing equity increases your mortgage balance, so it’s important to ensure it’s affordable.
Frequently asked questions
Got questions? Let’s answer them
What happens to my old mortgage?
Remortgaging simply replaces your current mortgage with a new one. This is because your new deal pays off the remaining balance on your old arrangement.
How does a remortgage work?
Determine affordability: Start by assessing your affordability to avoid getting carried away with home renovation dreams. It might be necessary to remortgage with another lender for a better deal.
Research mortgage options: Explore offerings from your current lender and the wider market. Consider a Product Transfer for potential cost savings and convenient online processes.
Choose the right deal: Tailor your choice based on your needs – such as fixed terms, future moves, and stability of repayments.
Initiate mortgage application: Apply online with lenders adopting digital processes. Some may automatically conduct property valuations through desktop surveys.
Navigate application process: The lender will evaluate your financial details, possibly requesting additional documentation.
Secure mortgage offer: Upon approval, you’ll receive a formal mortgage offer. If switching lenders, your solicitor will handle the final paperwork.
Completion: The final transition of property charges and direct debit payments to the new lender. Additional fund requests, if any, will follow shortly.
When shouldn't I remortgage?
Small mortgage debt consideration
If your mortgage debt is below a certain threshold, around £50,000, switching lenders might not be cost-effective due to potentially high fees. Some lenders won’t even entertain mortgages below £25,000.
Early Repayment Charges (ERC) awareness
When considering early remortgaging, be cautious of Early Repayment Charges. If breaking free from your current deal is costly, explore options like negotiating with your current lender for a product transfer.
This may involve a reduced early repayment charge, making it worthwhile if the new deal significantly improves terms without a lengthy lock-in.
Home value decline impact
If the value of your home has decreased, impacting your equity, it’s crucial to reassess. Even if you initially had a 10% deposit, a drop in house prices could leave you with a higher proportion of debt.
This situation, known as evaporating equity, may lead to negative equity, where your debt exceeds the property’s value. A professional remortgaging broker can help you to carefully evaluate the implications.
How long will my remortgage take to complete?
The length of time for it takes to remortgage is typically quicker than if you were to buy a new home. After all, you are staying in the home and moving from one lender to another.
If you’ve remortgaged with plenty of time to spare, the acting solicitor will arrange for your mortgage to complete on a specific date. This usually falls on the day that your existing deal comes to an end with your current lender.
This process can be repeated until you have repaid your mortgage in full.
Are there any costs associated with a remortgage?
Yes, there can be costs associated with a remortgage, which include but are not limited to:
- Product fees
- Valuation fees
- Solicitor fees
- Early Repayment Charges
- Administration or Deed Release fees
For tailored guidance, speak to a remortgaging broker about any costs that you may incur along the way.
Do I need a solicitor to remortgage?
In short, no you don’t need a solicitor to remortgage. If you’re just borrowing more on your existing deal with your existing lender then there is no need for any legal changes, meaning no legal services are required.
Most lenders will also include free legals in their remortgage deals which means their chosen conveyancing form will cover all the legal requirements.
However, there are a couple of situations where you’ll need to appoint your own conveyancing solicitor
Can I add someone to my mortgage?
If you’re looking to add a partner when you remortgage, you’ll need to get a solicitor to change the ownership of the property, a process known as a ‘transfer of equity’. The solicitor will amend the deeds and draw up paperwork specifying how the property will be owned.
Can I remove someone from my mortgage?
Just like adding someone to the mortgage, removing someone also requires solicitor support because the ownership of the property is still changing. As a result, the property deeds will need to be amended, and the relevant paperwork drawn up to clarify share of ownership.
Can I remortgage early?
Yes, you can remortgage at any time. However, it only really makes sense to do so when it works to your advantage.
While most people remortgage when they reach the end of a mortgage deal, it could be advantageous to remortgage earlier if you could secure a lower interest rate or if you’ve built up a certain amount of equity in your home.
Yes, you can remortgage at any time. However, it only really makes sense to do so when it works to your advantage.
While most people remortgage when they reach the end of a mortgage deal, it could be advantageous to remortgage earlier if you could secure a lower interest rate or if you’ve built up a certain amount of equity in your home.
The decision of when to remortgage comes down to a consideration of costs and benefits. For example, if you want to remortgage before a fixed-rate deal comes to an end, you’ll probably have to pay early repayment charges or fees. These costs would often outweigh the potential benefits of remortgaging.
Can I remortgage to release equity?
If you’ve built up enough equity in your home, remortgaging allows you to take advantage of this by releasing equity and reducing your mortgage costs.
This can be particularly beneficial during times of inflation-induced price rises, as it enables you to access capital from your home, easing increased living costs and potentially benefiting from a rise in house prices.
It’s important to note that releasing equity from your home involves some risk because your outstanding mortgage balance is likely to increase, so it’s crucial to ensure that you can afford to do so.
If you’re unsure about the next steps to take, our expert remortgage advisors can provide further assistance and guidance.
Can I remortgage to buy another home?
Yes, you can remortgage to purchase a new property. However, it’s crucial that your current property holds sufficient equity to make the process worthwhile.
If you have not been paying off your mortgage for an extended period, there might not be enough accumulated value to support your next property purchase, or the associated costs may not be justifiable when compared to the amounts required.
Can I remortgage to pay off debt?
Yes, if you possess sufficient equity in your property and meet the eligibility criteria set by your preferred lender (which can be either your current lender or a different one), you can remortgage your home to consolidate all your debts.
Interestingly, approximately 90% of lenders in the UK offer this option to borrowers.
what our clients saying about us
At the end of my tether I was introduced to Sam from UKMC.
Previous advisors had failed to find me any deals worth looking at and I was feeling most despondent. Destined to continue paying waaaay too much for my mortgage.
Creative Director, TUX Creative Co
At the end of my tether I was introduced to Sam from UKMC.
Previous advisors had failed to find me any deals worth looking at and I was feeling most despondent. Destined to continue paying waaaay too much for my mortgage.
Independent Art Director
At the end of my tether I was introduced to Sam from UKMC.
Previous advisors had failed to find me any deals worth looking at and I was feeling most despondent. Destined to continue paying waaaay too much for my mortgage.
Creative Developer, Studio Gusto
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disclaimer
UK Mortgage Centre Limited is an Appointed Representative of Refresh Mortgage Network Limited. Refresh Mortgage Network Limited is authorised and regulated by the Financial Conduct Authority. We are entered on the Financial Services Register under firm number 1019794.
As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments. The Financial Conduct Authority does not regulate some forms of buy-to-let mortgages.
The Financial Conduct Authority does not regulate will writing and taxation and trust advice.
You may be charged a fee for your advice. A typical fee is £595, which would be payable when you receive your mortgage offer. Your dedicated advisor will discuss this further on your free initial phone call.
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