Remortgage
Are you looking to remortgage your home? If so, you must understand the process and determine if remortgaging is right for you. To help you with the decision-making process, we have created a comprehensive guide that outlines all the steps involved in remortgaging. In addition, our guide will provide insight into the various benefits of remortgaging and how to go through the process smoothly.
Why Remortgage? Save Money, Access Equity, or Switch to a Better Deal
Whether your current deal is ending or you’re looking to consolidate debts, remortgaging can help you lower monthly payments, release equity for home improvements, or secure a more flexible mortgage. At Connect Mortgages, we offer expert remortgage advice tailored to your financial goals.
Explore Tailored Remortgage Solutions
We compare exclusive remortgage rates from over 200 lenders and providers, including high street banks and niche providers, so you don’t have to. We specialise in helping homeowners with:
Fixed-rate remortgages
Tracker and offset options
Remortgaging to raise capital
Switching from interest-only to repayment
Complex income or credit history
🔗 Thinking of investing too? Visit our Buy-to-Let Remortgage page for landlord solutions.
What is a Remortgage?
Remortgaging means replacing your existing mortgage with a new one, typically from a different lender, on the same property without moving home. It’s often done to secure a better deal, reduce your interest rate, or release equity. The process involves using the new mortgage to pay off the old one, potentially adjusting the loan’s amount, term, or structure. Homeowners remortgage to save money, fund renovations, or consolidate debts.
Sometimes, remortgaging can free up cash to fund home improvements, debt consolidation, or other investments.
The remortgaging process involves evaluating your finances, researching lenders and loan types, completing paperwork, and closing on the new loan.
Why Do Homeowners Remortgage?
Secure a Better Rate: To lock in a lower interest rate than your current deal or your lender’s Standard Variable Rate (SVR).
End of Fixed or Tracker Deal: To avoid rolling onto a higher SVR once your initial deal expires.
Release Equity: To borrow additional funds against your home’s value, which is often used for renovations, debt consolidation, or major purchases.
Change Your Mortgage Terms: To switch from fixed to variable (or vice versa), or to adjust your loan duration, shortening it to pay off faster, or extending it to reduce monthly payments.
How Remortgaging Differs from Other Options
Product Transfer: Staying with your current lender but switching to a new rate or deal.
Porting: Taking your existing mortgage with you when moving to a new property, no lender change required.
Bottom Line
Remortgaging is like refinancing your current mortgage with a new lender. It can save money, free up capital, or provide more flexibility, but it involves a new application, affordability checks, and legal steps.
What are the Benefits of Remortgaging?
Remortgaging can help you reduce monthly outgoings, lock in a better interest rate, or release equity for major expenses. It’s also a smart way to avoid slipping onto a costly Standard Variable Rate (SVR) once your current deal ends. Whether you’re looking to borrow more, pay off your mortgage faster, or gain financial certainty, remortgaging puts you back in control.
Key Benefits of Remortgaging
Lower Interest Rates
If your credit score or Loan-to-Value (LTV) has improved, you may qualify for a more competitive rate, potentially saving thousands over the life of your mortgage.Reduced Monthly Payments
A lower rate can reduce your monthly commitment, freeing up cash for other priorities or lifestyle needs.Avoid Expensive SVRs
Remortgage before your fixed or introductory rate expires to avoid reverting to a higher SVR, which often means unpredictable payments and higher interest.Raise Capital Through Equity
Access the equity in your home to fund renovations, consolidate debt, or cover large expenses, usually at lower rates than unsecured borrowing.Shorten Your Term
Opt for a shorter mortgage term to pay off your home faster and save significantly on long-term interest costs.Budget with Confidence
Switching to a fixed-rate deal gives you payment certainty for a set period, making it easier to plan ahead financially.Better LTV, Better Rates
If your home has increased in value, you may qualify for better deals with a lower LTV, which can enhance your borrowing power.
When Remortgaging Makes Sense
Your current fixed-rate deal is about to expire
You’ve gained substantial home equity
You need funds for home improvements or to consolidate debt
You’re paying more on a Standard Variable Rate
Things to Consider
Early Repayment Charges (ERCs): Some mortgages penalise early exit. Check your current terms before switching.
Associated Fees: New deals may include arrangement, valuation, or legal fees; balance these against your potential savings.
How Does Remortgage Work?
Review your current mortgage:
Find out when your current deal ends and check for any Early Repayment Charges (ERCs).Set your goals:
Decide what you want: lower interest, a different term, or to borrow more. Check your equity and get an updated property value.Compare options:
Search for better deals from other lenders or consider a Product Transfer with your existing lender.Submit your application:
The lender will assess your income and credit history and conduct a property valuation.Complete legal work:
A solicitor will handle the legal side, paying off your old mortgage and registering the new one.Start your new deal:
Once approved, your new mortgage will begin and replace your existing mortgage.
Remortgage vs Product Transfer vs Porting
Remortgage: Move to a new lender and start a new deal.
Product Transfer: Stay with your current lender but switch to a new deal, usually quicker with minimal paperwork.
Porting: Transfer your existing mortgage deal to a new property (still with your current lender).
Mortgage Advice..
Thinking of getting a mortgage? Our experienced team of skilled mortgage advisers are here to offer the essential guidance you require. Relying on our comprehensive understanding of the mortgage market, we’ll ensure you secure the perfect mortgage to suit your specific situation.
FAQs: Remortgage
Most frequent questions and answers about remortgage
If you’re borrowing more on your existing mortgage or switching products, with the same lender (known as a product transfer) then there are no legal charges involved. However, if you move to a new rate or a different deal with your current lender, or move to an entirely different lender, then you will need to use a solicitor or conveyancer. You can use the lender’s conveyancer if this service is included with your chosen product, or you can appoint your own.
When you remortgage, your existing mortgage will be replaced with a new one. It may involve changing lenders, or simply switching to a different deal with your current lender. Your new mortgage can usually offer more favourable terms such as a lower interest rate or more flexibility.
Yes, it is possible to remortgage with blemishes on your credit file. However, you may have difficulty finding a lender, willing to offer favourable terms. It’s also likely that the interest rate will be higher.
Having a poor credit history doesn’t necessarily mean that you won’t get a mortgage – many specialist lenders assess on a case-by-case basis.
Contact a Connect broker in the first instance if you’re concerned about your credit history.
It is possible to remortgage and pay off the debt by borrowing more, if there is sufficient equity in the property. It pays to explore all options before taking additional borrowing to consolidate your debt – after all this would mean taking the debt over a longer period in line with the chosen mortgage term.
Yes, a remortgage can be used to fund the purchase of a second property. Depending on your circumstances, you may need to release equity or use savings to make up the difference. It’s important to speak to an experienced mortgage advisor before making any decisions to purchase additional properties – this could result in you paying stamp duty.
The funds from the remortgage loan are released and your existing mortgage is paid off in full. The new lender then becomes responsible for collecting future payments under the new agreement. The new deal will become effective from the first monthly payment.
No, a deposit is not required to remortgage. In most cases, remortgaging can be done without having to access any savings. Instead, you can use the equity that has built up in your property over time.
No, you can approach lenders directly, but using a mortgage broker like Connect Mortgages gives you access to a wider range of deals, including exclusive rates not available on the high street. A broker will assess your needs, handle the paperwork, and guide you through the process saving you time, stress, and potentially money.
What next?
We will come back to you quickly to let you know how we can help. If you would like to speak to us immediately, call us on 01708 676 111.
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Liz Syms is the CEO and Founder of Connect Mortgages and Connect for Intermediaries, a leading firm specialising in property investment finance. With more than 25 years of experience in the mortgage and financial services industry, Liz has helped thousands of clients secure both residential homes and investment properties.
Renowned for her expertise and commitment to excellence, Liz is passionate about delivering tailored, high-quality advice on mortgages and protection. Her leadership has positioned her as a trusted figure in the sector, and under her guidance, Connect Mortgages has expanded to a national team of over 300 advisers.
Driven by a vision to make Connect Mortgages one of the UK’s most successful mortgage networks, Liz continues to champion professional standards and client-focused solutions across the industry.
About the Author
Liz Syms is the CEO and Founder of Connect Mortgages, a specialist in finance for property investment. With over 25 years of experience in mortgages and financial services, Liz has helped countless people get their dream homes and investment properties. She is passionate about giving her clients the best advice possible when it comes to financial decisions relating to mortgages and protection and is dedicated to providing the highest quality of service. With her wealth of knowledge in the industry, Liz is a respected leader in mortgages and financial services and has grown her team to over 300 advisers nationally. She strives to make Connect Mortgages one of the most successful companies in its field.