What is a Remortgage? UK Guide to Switching Mortgage Deals

What is a Remortgage?

A remortgage is when you move your existing mortgage to a new mortgage deal. This may mean switching to a new lender, changing your rate, borrowing more against your property, or reviewing your mortgage before your current deal ends.

Many homeowners look at remortgaging when a fixed, tracker or discounted mortgage rate is coming to an end. If no action is taken, the mortgage may move onto the lender’s standard variable rate, which could increase monthly repayments.

A remortgage is not always the right option. Some borrowers may be better off staying with their current lender through a product transfer, waiting until an early repayment charge ends, or comparing alternatives such as a further advance or second charge mortgage.

If you want to compare your options with adviser support, you can use Connect Experts to search for a remortgage broker across the UK.

What Does Remortgaging Mean?

Remortgaging means replacing your existing mortgage with a new mortgage deal. You usually stay in the same property, but the mortgage terms may change.

This could involve:

• Moving from your current lender to a new lender
• Switching from one rate type to another
• Moving from a lender’s standard variable rate to a fixed or tracker rate
• Borrowing more against your property, where suitable
• Changing the mortgage term
• Reviewing your mortgage because your current deal is ending
• Remortgaging a residential or buy-to-let property

For example, if your two-year fixed rate is ending, you may compare new deals before your mortgage moves onto your lender’s standard variable rate. A broker can help you compare whether a new lender, your current lender, or another route may be more suitable.

Why do People Remortgage?

People remortgage for different reasons. The most common reason is that their current mortgage deal is coming to an end.

You may consider remortgaging if:

• Your fixed rate is ending soon
• Your tracker or discounted rate is ending
• You are already on a standard variable rate
• Your monthly repayments have increased
• You want more payment certainty
• Your property value has changed
• Your income or circumstances have changed
• You want to borrow more for home improvements
• You want to review your mortgage term
• You are considering debt consolidation
• You want to remortgage a buy-to-let property
• You want to compare a remortgage with a product transfer

The right option depends on your mortgage balance, property value, income, credit profile, lender criteria and future plans.

Remortgage vs Product Transfer

A remortgage and a product transfer are not the same thing.

A remortgage usually means moving your mortgage to a new lender. This can give you access to a wider range of mortgage products, but it may involve affordability checks, legal work, valuation checks and fees.

A product transfer means staying with your current lender and moving to a new mortgage deal with that same lender. It may involve less paperwork and may be quicker, but it only lets you choose from your current lender’s available products.

A broker can help compare both routes.

A remortgage may be useful if:

• Another lender may offer a more suitable deal
• Your property value has increased
• Your circumstances have improved
• You want to borrow more
• You want a different mortgage type
• You want access to wider lender options

A product transfer may be useful if:

• Your current lender offers a suitable deal
• You want a simpler process
• Your circumstances have changed since your last mortgage
• You want to avoid a full remortgage application
• You do not need to borrow more
• You want to avoid unnecessary legal or valuation work

The lowest interest rate is not always the best overall option. Fees, mortgage term, flexibility, overpayment rules and early repayment charges should also be reviewed.

When Should You Start Looking at Remortgaging?

You should usually start reviewing your options several months before your current deal ends. This gives you time to compare rates, prepare documents and avoid rushing into a decision.

Starting early can help you:

• Check your current mortgage balance
• Confirm your deal end date
• Review any early repayment charges
• Compare your current lender’s product transfer options
• Compare remortgage options with other lenders
• Understand what your monthly payment could become
• Prepare documents before applying
• Avoid moving onto a standard variable rate without a plan

If your mortgage rate is ending soon, you can search for a remortgage broker who can help explain your options.

How does remortgaging work?

The remortgage process usually follows a few key steps.

1. Review your current mortgage

Start by checking your current mortgage details. You will usually need:

• Your current lender
• Outstanding mortgage balance
• Current interest rate
• Monthly repayment
• Mortgage term remaining
• Deal end date
• Early repayment charge details
• Estimated property value
• Reason for remortgaging

This information helps an adviser compare whether remortgaging may be suitable.

2. Check your loan-to-value

Loan-to-value, often called LTV, compares your mortgage balance with your property value.

For example, if your home is worth £300,000 and your mortgage balance is £210,000, your LTV is 70%.

Your LTV can affect the mortgage deals available to you. If your property value has increased or your mortgage balance has reduced, your LTV may have improved. This could affect the rates and products lenders may consider.

3. Compare your current lender and new lenders

Your current lender may offer a product transfer. Other lenders may offer remortgage products.

Both should be compared carefully. A new lender may offer wider options, but your current lender may offer a quicker route with fewer checks. The right answer depends on your circumstances.

4. Check affordability

Lenders will usually assess whether the mortgage is affordable. They may review your income, outgoings, credit commitments, dependants, credit history and mortgage term.

If you are self-employed, a contractor, a company director or have variable income, you may need specialist advice. You can search for a self-employed mortgage broker if your income is more complex.

5. Review fees and charges

Before switching, check the total cost. A lower rate may not always save money if the fees are high.

Common remortgage costs may include:

• Arrangement fees
• Valuation fees
• Legal fees
• Broker fees
• Exit fees
• Early repayment charges
• Higher long-term interest if the mortgage term is extended

Some lenders offer free standard valuations or legal support for remortgage customers, but the overall deal still needs to be compared.

6. Submit the application

Once you choose a suitable option, the application is submitted to the lender. The lender will review the application, check affordability and arrange any valuation required.

You may need to provide:

• Proof of identity
• Proof of address
• Payslips or income evidence
• Bank statements
• Tax documents if self-employed
• Details of your current mortgage
• Evidence of credit commitments
• Details of any additional borrowing

7. Receive the mortgage offer and complete

If the lender approves the application, they will issue a mortgage offer. Legal work is then completed so the old mortgage can be repaid and the new mortgage can begin.

Before completion, check the rate, monthly payment, term, fees, overpayment rules and any conditions.

How much does remortgaging cost?

Remortgaging costs vary depending on your current mortgage, the new deal and the lender.

Costs may include:

• Arrangement fee: A fee charged by the lender for the new mortgage product.
• Valuation fee: A cost for checking the property value, although some lenders include this.
• Legal fee: A solicitor or conveyancer may be needed when switching lender.
• Broker fee: Some advisers charge for arranging the mortgage.
• Exit fee: Your current lender may charge an administration fee when the mortgage is repaid.
• Early repayment charge: This may apply if you leave your current mortgage deal before the charge period ends.

Early repayment charges can be significant. Always check your mortgage offer or annual statement before applying for a new deal.

Can you remortgage before your fixed rate ends?

You may be able to remortgage before your fixed rate ends, but it may not always make financial sense.

If you switch too early, your lender may charge an early repayment charge. This can reduce or remove any saving from the new deal.

Before remortgaging early, check:

• When your current deal ends
• Whether an early repayment charge applies
• How much the charge would be
• Whether your new deal would save enough to justify the cost
• Whether a product transfer is available
• Whether waiting would be more suitable

A broker can help compare the numbers before you make a decision.

Can you remortgage to release equity?

Some homeowners remortgage to release equity from their property. This means borrowing more against the value of the home.

This may be considered for:

• Home improvements
• Property repairs
• Family support
• Repaying selected debts
• Funding a major planned expense
• Reviewing wider financial plans

Borrowing more increases the debt secured against your property. It may also increase your monthly payments and the total interest paid over time.

If you are an older homeowner, you may also need to compare remortgaging with later-life lending options. You can search for an equity release mortgage broker if later-life borrowing needs to be reviewed.

Can you remortgage to consolidate debt?

Some borrowers consider remortgaging to consolidate debts. This means using mortgage borrowing to repay other debts.

This may reduce monthly payments in some cases, but it can increase the total cost if the borrowing is repaid over a longer mortgage term. It also changes unsecured borrowing into debt secured against your home.

Debt consolidation should be approached carefully and only after advice. Your adviser should explain the risks, costs and alternatives before you proceed.

Can landlords remortgage buy-to-let property?

Yes, landlords can remortgage buy-to-let property. A buy-to-let remortgage may be used when a rate is ending, when rental income has changed, or when the landlord wants to review portfolio plans.

Buy-to-let remortgages are assessed differently from residential mortgages. Lenders may review:

• Rental income
• Property value
• Landlord experience
• Property type
• Tenancy structure
• Portfolio size
• Personal income
• Limited company structure, where relevant

If you are a landlord, you can search for a buy-to-let mortgage broker through Connect Experts.

Is remortgaging always the best option?

No. Remortgaging is not always the right choice.

It may not be suitable if:

• The fees outweigh the savings
• Your mortgage balance is small
• You have a large early repayment charge
• You plan to move home soon
• Your income has reduced
• Your credit profile has changed
• Your current lender offers a suitable product transfer
• You would be increasing your borrowing without a clear plan
• Another option may be more suitable

A broker can help compare remortgaging with other routes.

Alternatives to remortgaging

There are several alternatives that may be worth reviewing.

Product transfer

A product transfer means switching to a new deal with your current lender. This may be quicker and simpler than a full remortgage, but it may not offer the widest choice.

Further advance

A further advance means borrowing more from your existing lender. This may be considered if you need additional borrowing and your current lender offers suitable terms.

Second charge mortgage

A second charge mortgage is a separate loan secured against your property. It sits alongside your main mortgage.

This may be considered if you want to keep your current mortgage, avoid an early repayment charge, or protect an existing low rate. You can search for a second charge mortgage broker if this option needs to be compared.

Waiting until your current deal ends

In some cases, waiting until an early repayment charge ends may be more suitable than switching immediately.

What documents do you need to remortgage?

The documents needed can vary by lender, but you may be asked for:

• Proof of identity
• Proof of address
• Latest mortgage statement
• Recent payslips
• Bank statements
• Tax calculations and tax year overviews if self-employed
• Company accounts if applicable
• Evidence of bonuses, overtime or commission
• Details of credit commitments
• Property details
• Reason for any additional borrowing

Having documents ready can make the process smoother.

How a remortgage broker can help

A remortgage broker can help you understand your options before you switch.

They may help you:

• Review your current mortgage
• Check your deal end date
• Understand early repayment charges
• Compare product transfers and remortgages
• Review affordability
• Compare lender criteria
• Explain fees and total cost
• Prepare documents
• Submit the application
• Understand the mortgage offer

A broker can also help if your situation is more complex, such as self-employment, credit issues, buy-to-let property, portfolio landlord borrowing, or additional borrowing.

You can use Find a mortgage adviser to compare advisers by location, language, gender and specialism.

Why use Connect Experts?

Connect Experts helps you find mortgage advisers across the UK. You can search by mortgage type, location, language, gender and area of expertise.

This can be helpful if you want:

• A local mortgage adviser
• A remortgage specialist
• An adviser who understands buy-to-let property
• Support in a preferred language
• A male or female adviser
• Help with complex income
• Support comparing remortgage options and alternatives
• Connect Experts is a mortgage adviser directory and matching platform. Advice is provided by the adviser or firm you choose.

Start with Connect Experts or search directly for a remortgage mortgage broker.

Quick remortgage checklist

Before you remortgage, check:

• When your current deal ends
• Whether you will move onto a standard variable rate
• Whether an early repayment charge applies
• Your current mortgage balance
• Your estimated property value
• Your current loan-to-value
• Whether your current lender offers a product transfer
• Whether another lender may offer a suitable deal
• Whether fees reduce the benefit of switching
• Whether you want to borrow more
• Whether your income or credit profile has changed
• Whether advice is needed before proceeding

For mortgage advice on your remortgage, browse our FCA-Approved below:

Frequently asked questions about remortgaging

Question	Answer
What is remortgaging in simple terms?	Remortgaging means switching your existing mortgage to a new mortgage deal. This may be with a new lender or, in some cases, through a new deal with your current lender.
Why would I remortgage?	You may remortgage because your current mortgage deal is ending, your repayments have increased, your property value has changed, or you want to borrow more. Some people also remortgage to move from a standard variable rate to a fixed or tracker rate.
Is remortgaging the same as moving home?	No. Remortgaging usually means changing the mortgage on your existing property. Moving home usually involves selling one property, buying another and arranging a mortgage for the new home.
Is a product transfer the same as a remortgage?	No. A product transfer means staying with your current lender and moving to a new deal. A remortgage usually means switching to a new lender.
When should I start looking at remortgage options?	Many borrowers start reviewing options several months before their current deal ends. This gives time to compare deals, check fees and prepare documents.
Can I remortgage with bad credit?	It may be possible, but it depends on the type of credit issue, when it happened, your income, property value and lender criteria. Specialist advice may be useful.
Can I remortgage if I am self-employed?	Yes, self-employed borrowers can remortgage, but lenders may ask for tax documents, accounts, business bank statements or other income evidence.
Can I remortgage to borrow more?	Yes, subject to affordability, property value, credit profile and lender criteria. Borrowing more increases the amount secured against your property.
Does remortgaging cost money?	It can. Costs may include arrangement fees, valuation fees, legal fees, broker fees, exit fees and early repayment charges.
Can I remortgage a buy-to-let property?	Yes. Landlords often remortgage buy-to-let properties when a rate ends, rental income changes or portfolio plans change.