Do you need to remortgage?
When your term ends, you’ll need to remortgage or you could face higher rates. But there are other reasons to remortgage.
A bird’s-eye view of your plans
We help you weigh up your remortgage rate options. We might look for a new lender with a more competitive rate or stick with your lender to save on fees. Our no sale, no fee advice is always bespoke to you and your situation.
Head-turning deals from existing lenders
If your current lender offers a good remortgaging rate, or if your circumstances have changed since your mortgage term started, it might be an idea to stick with what you’ve got. Not sure what’s best? Ask us!!
What is a Remortgage?
A remortgage is when you switch your existing mortgage to a new deal, either with your current lender or a new one, without moving home. The main goal is often to secure a better interest rate, reduce monthly repayments, release equity, or amend the mortgage term to better suit your financial circumstances. Remortgaging can be a strategic way to save money over time, especially if your current deal is ending or you're on a lender’s standard variable rate. By reviewing your mortgage options regularly, you can avoid paying more than necessary and ensure your loan continues to suit your changing financial needs over time.
What Does Remortgaging Mean?
Remortgaging refers to the process of taking out a new mortgage on a property you already own, effectively replacing your existing mortgage. Homeowners often choose to remortgage to secure a lower interest rate, switch between fixed and variable rates, release equity for purposes like home improvements or consolidating debt, or to adjust the mortgage term. Some people may also remortgage to move to a lender whose products better suit their current needs. Ultimately, remortgaging provides an opportunity to reassess your mortgage and ensure it aligns with your current financial goals and circumstances.
Types of Remortgages
There are several types of remortgages available, depending on what you're looking to achieve:
- Rate Switch or Product Transfer. If you're staying with your current lender, this is known as a rate switch or product transfer. This type of remortgage involves fewer checks and less paperwork, making it a convenient choice.
- Remortgage to a New Lender. Remortgaging with a different lender can allow you to secure a better interest rate or access more flexible terms. This can offer access to better interest rates or more flexible terms, especially if your circumstances or credit score have improved since you took out your original mortgage.
- Remortgage to Release Equity. If your home’s value has increased, you may be able to release some of the equity. This could be used for renovations, buying a second property, or consolidating debt.
- Remortgage to Change Term or Type. You might choose to shorten your mortgage term to pay it off faster or extend it to reduce monthly payments. You may also switch between repayment and interest-only mortgages.
- Each type of remortgage comes with its own benefits and potential drawbacks. Speak to the team at Mortgage Matters to explore which remortgage option best suits your circumstances. Our advisers can help you weigh up the pros and cons of each option, ensuring your new deal aligns with your current financial goals and long-term plans.
The Process of a Remortgage
The remortgaging process is generally more straightforward than applying for a mortgage to buy a home. Here’s how it normally works:
- Review Your Current Mortgage. Start by checking your current mortgage deal. Note when it ends and if there are any early repayment charges. You should also look closely at the interest rate you're paying - this will give you a baseline for comparing new deals.
- Shop Around for Deals. Compare remortgage offers from your current lender and other providers. Consider interest rates, fees, and terms. A mortgage broker like Mortgage Matters can help you access exclusive deals and identify the most suitable product.
- Apply for a Remortgage. Once you’ve chosen a deal, submit your application. This will usually include affordability checks, a credit check, and a valuation of your property.
- Property Valuation and Underwriting. The lender may carry out a physical or desktop valuation of your property. They'll also review your finances and documents to ensure you meet their criteria.
- Offer and Legal Work. If approved, you'll receive a formal mortgage offer. A solicitor or conveyancer will handle the legal side of the remortgage, making sure all necessary documents are properly completed, the property title is checked, and the previous mortgage is settled correctly.
- Completion. Once everything is in place, your old mortgage is paid off with funds from the new one, and you’ll begin making payments under the new agreement. If you're releasing equity, you'll receive the extra funds shortly after completion.
What Documents Do I Need to Remortgage?
The documentation needed for a remortgage is usually simpler than a new purchase but still important. You’ll need:
- Proof of income - payslips (if employed) or tax returns (if self-employed)
- Bank statements - usually the last 3 months
- Proof of identity - such as a passport or driving licence
- Proof of address - utility bills or council tax statement
- Details of your current mortgage - including your latest mortgage statement
Having these documents ready can help speed up the application process and avoid unnecessary delays. Some lenders may request further information depending on your personal circumstances or the type of mortgage you’re applying for. We advise keeping all financial records organised and up to date to make the process as smooth as possible. At Mortgage Matters, we guide you through exactly what’s needed to ensure your remortgage application progresses efficiently.
FAQs for Remortgages
Homeowners remortgage for a variety of reasons. One of the most common is to secure a better interest rate when their current deal ends. Others remortgage to release equity for home improvements, pay off other debts, or fund significant expenses like a new vehicle. Some may switch from interest-only to repayment mortgages, or vice versa, depending on financial goals.
Yes, it’s still possible to remortgage if you have a poor credit history. However, your options may be more limited, and you may face higher interest rates. Specialist lenders are more likely to consider applications from those with missed payments, CCJs, or defaults. Speaking to a broker can help you find suitable lenders.
Remortgaging can provide several advantages, including reducing your monthly payments and offering greater certainty through fixed interest rates. You may also gain access to better terms or features, allowing you to borrow additional funds, and improve flexibility with options like payment holidays or offset accounts. Overall, remortgaging is an effective way to adjust your mortgage to better suit your current financial situation, whether that means saving money or supporting new goals.
The remortgage process starts by reviewing your current mortgage and shopping around for new deals. Once you choose a lender, you'll submit an application with your financial details and supporting documents. A valuation and credit check will follow, and if successful, you’ll receive a mortgage offer. After the legal work is completed, your new mortgage replaces the old one. You can apply directly with a lender or through a mortgage broker who can help compare options and handle the process for you.
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