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Remortgaging a property can save you money on mortgage payments or let you raise some money without selling up.

By switching to a new deal that offers a lower interest rate, with your current lender or a new one, it’s possible to reduce your monthly repayments.

Remortgaging can also let you borrow more than you currently owe. This can give you a cash injection to cover any large expenses or to consolidate other debts.

The remortgage deal you will get and how much you can borrow depends on the amount of equity you have in your property, and if mortgage lenders think you can afford the repayments.

What is a remortgage?

A remortgage is when you move your mortgage to a new deal with another lender, or move to a different deal with your current lender.

Switching to a new interest rate with your current lender is known as a product transfer, and not much will change other than the amount you repay each month.

If you remortgage with a different lender, the new lender effectively pays off your old mortgage and your debt transfers over to them. This will usually involve more admin and additional fees, which you’ll need to factor into your calculations.

Shopping around can help you get the best deal, but also check if your existing lender can offer you a more competitive deal than the one you are currently on.

When should you remortgage?

The main reason homeowners remortgage is because they are reaching the end of their lender’s initial fixed rate or discounted period and they want to save money. This is usually two to five years into the mortgage term, when the interest rate reverts to the lender’s standard variable rate (SVR), which is generally higher and will cost you more each month.

While the potential to save money every month is a common motivator, there are other possible reasons and triggers for remortgaging. These range from wider economic factors to changes in your financial circumstances, such as:

  • You want to lock in today’s interest rates, as you’re concerned about future rises.
  • Interest rates have fallen since you first got your mortgage, and you want to take advantage of a cheaper deal with a lower interest rate.
  • You plan to release equity from your property to help pay for home improvements or other large expenses.
  • You want to remortgage to pay off other debts. If you’re considering this, talk to a financial adviser or a debt adviser before going ahead.
  • Your property has gained in value over time and after a few years of mortgage repayments you own more equity, which means you can access lower loan-to-value (LTV) deals and better rates.
  • You prefer to switch to a longer fixed interest period for peace of mind, perhaps five years instead of your current two-year fix.
  • You no longer want to be locked into a lengthy fixed-rate period and would prefer a shorter fixed rate, or one that varies alongside interest rate movements.
  • You would like to move to a more flexible mortgage that takes account of your savings, such as an offset mortgage, or allows you to make overpayments without penalties.


If you’re looking to remortgage, don’t leave it until the last minute – ideally, give yourself three to six months before your deal ends to consider your options as the process can be lengthy depending on what you are looking to do.

If you’re not sure if it’s right for your situation, or when to do it, speak to us for advice.

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Because we play by the book we want to tell you that…

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 upon your circumstances.
The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.

You may have to pay an early repayment charge to your existing lender if you remortgage.

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