Credit will be secured by a mortgage on your property. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Written quotations are available from individual lenders. Loans are subject to status and valuation and are not available to persons under the age of 18. All rates are subject to change without notice. Please check all rates and terms with your lender or financial adviser before undertaking any borrowing.
A remortgage calculator can help you to find and compare remortgage deals. Our calculator works out your loan-to-value (LTV), based upon your house price and how much you need to borrow. It will show you the mortgages – including interest rates and product fees – that are available and the total amount payable over your mortgage deal. You can refine your results further by interest rate type, such as fixed rate or variable.
You will need to know how much you have left to pay off your mortgage and your property’s current value. You then divide your outstanding mortgage balance by your property’s value. For example:
A remortgage means changing from your existing mortgage deal to a new one without moving home. You can remortgage with your existing lender, but you may want to remortgage with a different lender instead if they offer a better rate of interest. You can also use a remortgage to release equity, for example to buy a second home, either for your holidays or as a buy-to-let property. Read our guide to remortgaging to learn more.
There are four reasons to remortgage:
Mortgage brokers remove a lot of the paperwork and hassle of getting a mortgage, as well as helping you access exclusive products and rates that aren’t available to the public. Mortgage brokers are regulated by the Financial Conduct Authority (FCA) and are required to pass specific qualifications before they can give you advice.
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Your home may be repossessed if you do not keep up repayments on your mortgage.
You may be able to borrow more when you remortgage. This will depend on your financial circumstances, such as your credit score and levels of affordability. An alternative to a remortgage (for example if you are locked into a deal and don’t want to incur early repayment charges) is to ask for a further advance from your current mortgage lender.
A further advance is when you borrow an additional sum of money, usually at a rate of interest different to your mortgage deal. Sometimes this will be on a deal with no repayment restrictions, meaning that once your main mortgage comes to an end, you can join both pots of borrowing together and remortgage onto one single product.
Read our guide to learn more - second charge mortgages vs. remortgaging.
When you remortgage, you may need to pay a product fee – sometimes your existing lender may offer a reduced fee as part of an incentive to remortgage with them. In addition, if you are moving lender you will probably need to pay a valuation fee. However, many lenders as part of wanting to attract new remortgage business will offer these free of charge.
You can find out more about mortgage fees in our guide What fees do I need to pay when getting a mortgage.
You can compare mortgage rates and fees using our remortgage charts:
|
Remortgage option one |
Remortgage option two |
Remortgage option three |
Initial interest rate |
1.29% |
1.54% |
1.99% |
Product fee |
£999 |
£0 |
£0 |
Total amount repayable over two years |
£18,265.08 |
£17,677.92 |
£18,434.64 |
The table above shows mortgages at 75% on a repayment basis
When comparing remortgage deals, you should look at the total amount you will pay over the deal period. Above shows an example for a 75% LTV mortgage, on a repayment basis over a two-year fixed deal. While option one has the lowest initial interest rate, the fee makes this more expensive. The best remortgage deal in the example above is option two, which is £756.72 cheaper than option three, the most expensive.
Some mortgages will apply early repayment charges. which means that if you leave the mortgage deal before the deal period ends you will have to pay a penalty. This is usually a percentage fee of your mortgage balance and can make switching very expensive.
There is now more flexibility from lenders to give mortgage terms past the age of 65. Many have extended their maximum borrower ages and some now have no maximum at all. Our guide to Mortgage tips for over-70s can tell you more about borrowing in later life. In addition, you may want to consider a retirement interest-only mortgage or equity release.
It’s important to check your credit score to make sure it is high enough to qualify for a mortgage. If you are switching to a new lender, you will need to meet their affordability requirements. You can prepare for this by reviewing your outgoings and reducing or removing unnecessary spending or bills.
The process of remortgaging can be fairly quick if you are simply sticking with your current lender, but it could take as long as two months (or more) if you’re switching to a new one. This will depend on your own application, if there are any difficulties to consider and the lender you’ve chosen. Don’t let such a long time-frame deter you from switching to a different lender, however, as the benefits (if you’ve picked the right deal for you) should outweigh any stress in the end.
If you are not sure about remortgaging or are thinking about borrowing some additional money for something such as home improvements or to buy a car, then a mortgage broker can help you to quickly find out which lenders are happy to consider your application and at what LTVs.
Yes, you should allow at least two months before your current deal expires, if not more, to give you time to search for a remortgage deal and find one that meets your needs. If you leave it too late you could find your mortgage reverts to a higher rate of interest that will increase your monthly mortgage payment.
If you are remortgaging with your current lender then you should not need a solicitor, as this is termed as a product transfer. However, if you are moving to a new lender then you will need a solicitor to cover the usual legal requirements of getting a mortgage.
Yes, as long as you meet the criteria of the new lender, both for affordability, LTV and credit score, then you should be able to move to a new lender’s mortgage deal.
If you are moving to a different provider and/or trying to move to a lower LTV tier, you are likely going to need a new valuation. If you’re sticking with your current provider, however, you may be able to agree with them not to have a new valuation done.
You will need to agree with your lender the value of your property. Your lender will do this either by completing some desk research or conducting a formal valuation of your home.
Most remortgages are below 75% LTV, however you can remortgage at up to 95% depending on your circumstances. If your initial mortgage started at 95% LTV on a property worth £363,400 and you borrowed £345,000 at 2.59% fixed, the total amount you would pay over the two-year period is £38,409.84. After two years you would have £306,590.16 remaining on your mortgage. If after two years your property is still worth the same amount, then your LTV would now be 84%. This means you would qualify for a broader range of remortgages compared to when you first started.
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A mortgage broker specialises in finding mortgage lenders who will meet your needs for a mortgage. They do this by providing you with advice and recommending the mortgages most suitable for you. They will then manage completing your mortgage application.
Mortgage brokers remove a lot of the paperwork and hassle of getting a mortgage, as well as helping you access exclusive rates.
Never assume your credit score is high enough before you attempt to apply for a mortgage. Our helpful guide explains everything you need to know before applying.
Never assume your credit score is high enough before you apply for a mortgage. Our helpful guide explains everything you need to know before applying.