People often look into remortgaging as a way to get a better deal on their current property’s mortgage or to release cash to use for something else.

In this guide we’ll introduce you to remortgaging. Get in touch with us if there’s anything else you’d like to know about remortgaging or if you’d like us to find the ideal remortgage adviser for you. If you want to learn more, see whether you should remortgage or more information on how it works. 

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What is Remortgaging?

A remortgage is when you replace your current mortgage with a different one from the same lender or from a different one. You might want to remortgage your home because you think you can get a better deal with another provider. You might also want to release some cash from your property to cover some other costs.

What types of remortgage deal are there?

Lenders often have many variations of remortgage deal available. There are lots of factors that can change from deal to deal, but the two main groups of remortgage are actually just the same as your standard mortgage:

  • Fixed-rate remortgage
    • Your lender will give you a fixed rate for a short term (usually anything up to 10 years). Some people prefer a fixed-rate remortgage because they can be certain about how much they’ll need to pay each month.
  • Tracker remortgage
    • As with standard mortgages, interest rates on tracker mortgages change depending on the Bank of England’s interest rate. It can be a risk to take a tracker remortgage because you might end up paying more if interest rates go up. On the other hand, you might end up saving if interest rates drop, which is why some people prefer this option.

Do I need a deposit to remortgage?

Lenders tend to accept the equity you’ve already built up in the property as a deposit on a remortgage, so you generally don’t need a standard ‘deposit’. The amount you’ve already paid off also makes a difference to your remortgage rates – most lenders will offer you better rates the more equity you’ve paid off.

Do I need to get my house revalued before remortgaging?

Your lender should arrange this as during their assessment process. But many lenders will charge you for this and that can cost up to £1,500 depending on how much your property is worth.

Free Mortgage MOT

Match with an advisor that will check the condition of your existing mortgage for free. They can suggest products that allow you to save on your mortgage, or simply mortgage and protection products that are more suitable for your current situation.

What are the best remortgage rates?

Mortgages and remortgages can be complicated and it can be easy to miss a good deal. Some people go straight for the deal with the best interest rate, but sometimes forget that there might be some other fees included in that deal. Always take the time to work out the overall cost of your remortgage – you’ll thank yourself later.

You can either check the paperwork or website of your lender or ask them directly for the fees associated with your remortgage deal. There might be arrangement fees – this is essentially a fee charged by the lender to cover admin costs. We’ve listed some of the other fees you should look out for here.

Can I remortgage a buy to let?

Yes, you can. Many people go down this remortgaging route as it can be a great way of reducing the cost of their buy to let.

Can I remortgage to pay off debt?

This is one of the main reasons many people remortgage their home. Get in touch with us to find out how you can remortgage to consolidate or pay off your debts.

For more on what remortgaging is and help with getting a remortgage, please don’t hesitate to get in touch with us or fill in the form below and we’ll get back to you with a quote and some  help with starting your remortgaging process!