Remortgage

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YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

What Is Remortgaging?

Remortgaging means switching your current mortgage to a new deal—either with your existing lender or a new one—without moving home. It can involve replacing your mortgage with a different product or increasing your borrowing against your property’s value.

Legally, remortgaging refers to transferring your mortgage from one lender or loan type to another while keeping the same property as security.

Why Should I Consider Remortgaging?

Most mortgage deals last between 2 to 5 years, with some lenders offering 10-year fixed deals. Once your initial deal ends, your mortgage usually defaults to your lender’s Standard Variable Rate (SVR)—which is often higher and can fluctuate based on market conditions.

Remortgaging can help you avoid these higher costs and secure better terms. Here are some of the most common reasons people choose to remortgage:

When your fixed or introductory rate ends, switching to a new deal before you move onto your lender's SVR could save you hundreds—or even thousands—each year.
If interest rates have dropped—or your credit score or income has improved—you may now qualify for a better deal than when you first applied.
If your home has gone up in value since your initial mortgage, your loan-to-value (LTV) ratio improves. This can make you eligible for more competitive rates.

Getting Ready to Remortgage

Just like any major financial decision, preparing for a remortgage takes careful planning—but it doesn’t have to be complicated. With the right steps and support, the process can be smooth and stress-free.

Simple Steps to Prepare

Start early and take control of your finances by doing the following:

Know your current mortgage balance:
Check exactly how much remains on your mortgage so you can assess how much you’ll need to borrow next.
Review your credit score:
Look at your credit report and correct any errors or outdated information. A clean credit file improves your chances of securing a better rate.
Avoid new credit applications:
Try not to take on additional loans, credit cards, or financing before remortgaging, as this can affect your affordability.
Delay large purchases:
Hold off on buying big-ticket items (like a car or luxury items) until after your new mortgage is in place.
Reduce your debts:
Where possible, pay down your credit cards and overdrafts to boost your financial profile and disposable income.

Start Early

Ideally, you should begin preparing for your remortgage 3 to 6 months before your current deal ends. This gives you time to explore all your options, avoid falling onto your lender’s potentially expensive Standard Variable Rate (SVR), and make a smooth transition.

Consider All the Options

When it comes to remortgaging, you typically have three paths:

Stay with your current lender – They may offer a simple “product transfer,” but it’s worth checking if their new deal is still competitive.
Apply directly to a new lender – May work well if you know the exact product you want.
Use a mortgage broker – A broker can compare a wider range of lenders and rates, and help you find deals that suit your circumstances.

⚠️ Not all lenders or deals are created equal. A low interest rate doesn’t always mean the best product—fees, flexibility, and loan structure matter too.

What Fees Should I Expect When Remortgaging?

While remortgaging can help you save money or unlock better terms, it’s important to be aware of the associated costs. Preparing in advance will help you avoid surprises and make more informed financial decisions.

Here’s a breakdown of the most common remortgaging fees:

1. Booking Fee

Also known as a reservation fee, this is a one-off, non-refundable charge applied by some lenders when you apply for a specific mortgage deal.

Amount: Typically £100–£200
Note: Not all lenders charge a booking fee, so it’s worth comparing options.

2. Arrangement Fee (Product Fee)

Charged by the lender for setting up your new mortgage. This can either be:

A fixed amount (e.g., £999–£1,499)
A percentage of your loan amount

You can either pay this upfront or add it to your mortgage—but be aware that adding it will increase the amount you repay with interest over time.

3. Legal Fees

To complete the legal side of the remortgage, you’ll need a solicitor or licensed conveyancer.

Some lenders offer remortgage deals with free legal services, which can save time and money.
If legal fees apply, expect to pay £300–£800, depending on the complexity of the case.

4. Valuation Fee

If you’re switching to a new lender, they may require a property valuation to confirm the current market value.

Many lenders include a free basic valuation as part of the remortgage deal.
If not, expect to pay between £250 and £1,500, depending on the property’s size, value, and location.

5. Early Repayment Charge (ERC)

If you’re leaving your current mortgage before the end of your fixed or introductory term, your lender may charge an early repayment fee.

This is usually 1% to 5% of the remaining loan
The earlier you leave the deal, the higher the penalty is likely to be

🔎 Always check your original mortgage terms to confirm if this fee applies and how much it might cost.

6. Exit Fee

Also known as a mortgage completion fee, this is charged by your current lender when your mortgage is fully repaid.

Typically ranges from £50 to £300
This fee is usually noted in your original loan agreement

Let Us Help You Remortgage with Confidence

We simplify the remortgaging process and make sure you get a deal that works for you—whether you’re saving money, accessing equity, or improving flexibility.

Book a no-obligation consultation today and let’s explore your options together.