Your home may be repossessed if you do not keep up repayments on your mortgage. Remortgaging involves a new credit commitment. Consider all costs including early repayment charges on your existing deal before proceeding.
Quick answer
Remortgaging replaces your existing mortgage with a new product. You can stay with your current lender (a product transfer) or switch to a new lender for a better rate, to release equity, or to change the mortgage term. The process typically takes 4 to 8 weeks and the best time to begin is 3 to 6 months before your current deal ends. All costs - arrangement fees, legal fees, and any early repayment charges - must be weighed against the benefit of switching.
Mortgage advice note: This page provides general information only. For personalised advice, speak to an FCA-authorised mortgage adviser who can assess your individual circumstances.
The Remortgage Process
- Review your current deal: Check when your current rate ends, whether there are early repayment charges, and what your outstanding balance and LTV are.
- Compare the market: Use a whole-of-market broker to compare available deals across lenders. Direct-only deals may exist, but brokers typically access a broader range.
- Apply: The new lender conducts a full credit assessment and affordability check. They require proof of income, ID, and bank statements.
- Valuation: The lender values your property (often a desktop valuation for straight remortgages with no additional borrowing).
- Mortgage offer issued: Confirms the new rate, term, and amount.
- Legal work: A conveyancer transfers the mortgage charge from the old lender to the new one.
- Completion: The new lender pays off the old mortgage. You begin repaying the new one.
Reasons People Remortgage
- To secure a lower interest rate when a deal ends
- To release equity for home improvements or other large costs
- To consolidate debts - with careful consideration of the risks
- To change the mortgage term (shorter to repay faster; longer to reduce monthly costs)
- To add or remove a person from the mortgage
- To move from interest-only to repayment
When Remortgaging May Not Be Worth It
If your current deal has significant early repayment charges, if your property has fallen in value and your LTV is now higher, or if your income or credit profile has deteriorated, remortgaging may be difficult or expensive. In these situations, a product transfer with your existing lender may be the most practical option.
Frequently Asked Questions
Most people remortgage when their current deal period (fixed, tracker, or discount) is coming to an end. The ideal window to start is 3 to 6 months before the end of your deal. This gives enough time to compare the market, make an application, and complete the switch before you roll onto your lender's Standard Variable Rate. You can lock in a new rate 3 to 6 months in advance with most lenders without incurring the ERC on your current deal.
Typically 4 to 8 weeks from application to completion, though this varies. Straightforward like-for-like remortgages with no additional borrowing can complete faster. If you are changing lenders, legal work is required. Some lenders offer free legal packages or use a specialist remortgage conveyancer which can speed things up. Delays typically occur with valuations, document requests, or complex income situations.
If you are switching to a different lender, a solicitor or licensed conveyancer must handle the legal transfer of the mortgage charge. Many remortgage products include a free legal service, meaning you do not pay separately for conveyancing. If you are staying with the same lender and doing a product transfer to a new deal, no conveyancing is required - it is handled administratively.
Yes, but the options available to you may be more limited and rates may be higher than your current deal, depending on the nature of the adverse credit. Some lenders are more flexible than others with recent defaults or missed payments. A whole-of-market broker with experience in adverse credit remortgages can identify which lenders are most likely to approve your application. Applying to the wrong lender and being declined leaves a hard search on your file for 12 months.
Typical costs include: an arrangement fee on the new mortgage (can range from nothing to over £2,000 - sometimes added to the loan); valuation fee (often free with remortgage products); legal fees (often covered by a free legal package); and any broker fee. On the outgoing side, check your current mortgage for early repayment charges. The total cost of switching must outweigh any benefit for remortgaging to make financial sense.
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