What is remortgaging?

Remortgaging is when you move your mortgage to a different lender. You’ll then take out a new mortgage deal to replace your old one.

How does remortgaging work?

When you remortgage, the amount you still need to repay on your existing mortgage will transfer to another lender. But your new deal could have a different rate, different monthly repayments and new terms and conditions.

This is different to switching to a new deal with your current lender. With remortgaging, you’ll usually move lenders.

You may choose to remortgage to:

  • save money by finding a better interest rate
  • switch to a mortgage that could better suit your needs, for example a fixed or tracker rate
  • change the term of your mortgage
  • release equity from your home so you can, for example, make home improvements.

Good to know

So, remortgaging is when you take out a new mortgage deal with a different lender.

But what if you stay with your current lender? You might hear this called a Product Transfer or simply ‘switching’ your mortgage deal.

How do you remortgage?

There are lots of steps involved in remortgaging, but we’ll help you every step of the way.

1. Work out how much you can afford

Check your finances and work out your monthly incomings and outgoings to see how much you can afford to repay.

This might be more or less than what you currently pay. This can help you work out how much you could borrow and whether you need to adjust your mortgage term.

2. Compare your mortgage options

Use our remortgage calculator to find out what mortgages might be available.

See how much you could borrow and what your monthly repayments may be.

3. Consider the costs

There are likely to be fees involved when remortgaging. This could be for a conveyancer or any early repayment charges you might need to pay on your existing mortgage.

Find out more about remortgaging costs with our guide.

4. Apply for an Agreement in Principle

Feeling good about your remortgage options? The next step is to apply for an Agreement in Principle (AIP). This will let you know how much you could borrow before you apply.

You can then apply online if you don’t need advice or book an appointment with one of our Mortgage and Protection Advisers.

5. Contact a conveyancer

You’ll need a conveyancer to move your mortgage to a new lender. They will help complete the necessary legal work, such as drawing up the mortgage deed and transferring the funds.

If you choose to use one of our conveyancers, we will cover your basic legal fees.

6. Valuation

Your new lender may also wish to arrange a valuation of your property to check it’s suitable for a mortgage.

Once this is approved, you’ll receive a formal mortgage offer.

7. Complete your new mortgage

After all the legal work is done and your new mortgage is arranged, your conveyancer will arrange funds to be transferred.

Your new deal will then start.

When can you remortgage?

You can usually remortgage your home at any time. However, leaving your current mortgage deal early might mean you pay an early repayment charge. Find out from your mortgage provider if you’ll have to pay this before applying.

You may prefer to remortgage when your current deal ends, but you can make plans in advance. You may be able to secure a new deal before your current mortgage ends. Check with your existing mortgage provider to find out when you can remortgage.

If you don’t take out a new deal before your current one ends, your mortgage may be moved onto a standard variable rate (SVR) set by your lender. SVRs are usually more expensive than rates on a mortgage deal, so most people will secure a new deal before their current one ends.

If you have any further questions about remortgaging, please speak with a mortgage adviser. You can contact us via phone or by booking an appointment.

You could lose your home if you don’t keep up your mortgage repayments

How long does a remortgage take?

Remortgaging your home usually takes between six to eight weeks but can, in some circumstances take longer. During this time, lenders may run their own credit checks to see whether you’re suitable for the new mortgage deal.

You can help speed the process up by being ready to provide the details they need, such as proof of your:

  • income and outgoings from the last three months
  • identity – such as your passport or driving licence
  • address – utilities or credit card bills.

Ready to remortgage?

Are you looking to remortgage to Lloyds? Our remortgage calculator is designed to show you:

  • our latest mortgage deals and interest rates
  • what your new monthly repayments could be.

Remortgage calculator

Let’s look at the details

  • If you’re switching between providers, you’ll probably need to use a solicitor or conveyancer.

    Mortgage providers often offer a solicitor or conveyancing as part of the new deal or for a fee. Alternatively, you can source your own.

  • There are some potential costs to be aware of when you mortgage.

    Early repayment charge

    If you choose to transfer or repay a mortgage during its initial deal period, you might pay an early repayment charge. Your lender calculates this by taking a percentage of either the:

    • original loan you borrowed
    • balance you still need to pay.

    Valuation fees

    A valuation fee is the cost of having your property valued to find out how much it’s worth. Some lenders – like Lloyds – won’t charge valuation fees when you remortgage.

    Legal fees

    You’ll have to pay for solicitors to help you switch your mortgage to another provider. Mortgage providers often offer solicitor or conveyancing services for a fee. If you prefer, you can find your own.

    Learn more about how much it costs to remortgage.

  • There are occasions where remortgaging might not be the right choice for you. Look out for:

    • Interest rates
      Your current mortgage may already have the best rate available to you, so you won’t save by switching.
    • Early repayment payment periods
      If you’re switching your mortgage early, you might have to pay an early repayment charge.
    • Negative equity
      If you owe more on your mortgage than your house is worth, you’re in negative equity. Homeowners with negative or low equity might find it harder to remortgage.

  • While moving your mortgage deal to another lender is one type of remortgaging, there are a couple of other types:

    • You will need to remortgage to change ownership of a property. This will change names on the mortgage and title deeds.
    • If you’re mortgage free and want to raise funds on your property, this is known as an ‘unencumbered remortgage’.

    Terms and conditions will apply to both of these types of remortgaging.

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Remortgaging

We know how important it is to get the right mortgage, whatever step of the ladder you're on. See if you could save money by moving your mortgage to us.

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Remortgaging

We know how important it is to get the right mortgage, whatever step of the ladder you're on. See if you could save money by moving your mortgage to us.

Remortgage to us