Remortgaging - FAQs
Remortgaging is the process of moving the mortgage on your current property to a new deal. This can either be with the same lender or a different one.
There are a number of reasons as to why it may be time to remortgage, including but not limited to:
- Your current fixed rate deal is ending
- You're assessing your finances and believe remortgaging could save you money
- You're on a standard variable rate and want to switch to a fixed-rate mortgage
- You're planning on releasing equity from your property to pay for home improvements
If your discounted term is coming to an end, it's recommended that you start the remortgaging process six months beforehand. You can remortgage at any time, but bear in mind that you may need to pay an early repayment fee to do so.
Our team of mortgage advisers can support you throughout the entire remortgaging process from start to finish. With access to thousands of deals - many of which aren't available on the high street - they'll be able to source a product that suits your individual circumstances.
Depending on your circumstances, there are a number of costs you'll need to take into account when remortgaging:
- Early repayment fee (depending on when you choose to remortgage)
- Possible product fee to a new lender
- Conveyancing and valuation fees
- Potential mortgage adviser fee
If you've changed roles or increased your earnings in full-time employment, you'll need to provide your current employer's details on your mortgage application.
However, if you've moved to part-time work or your wages have decreased in a new role, the amount you can borrow will be impacted. There are also different rules for those who are self-employed or on maternity leave when remortgaging.
Talk to your mortgage adviser about any changes in circumstances, so they can assess your finances and offer guidance on the options available to you.
On average, the remortgaging process takes between four to eight weeks. However, just as everyone's financial circumstances are different, there is no set time that it will take to remortgage, so this timeframe isn't guaranteed.
This depends on whether you remortgage with your current lender or a new one. Remortgaging with your existing lender is known as a product transfer, so no additional legal work is needed.
Meanwhile, remortgaging with a new lender will require a conveyancer. Certain mortgage products will cover the cost of the legal fees as part of the deal, so check with your adviser if this applies to you.
You may have to pay an early repayment charge to your existing lender if you remortgage.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.