What does remortgaging mean and how does it work?

October 27, 2021
couple holding a doll house

With remortgage rates currently at the lowest they’ve ever been, now seems like the perfect time to think about remortgaging. Whether you’re looking to release equity from your home to help fund that renovation of your dreams, or simply want to save money on your monthly repayments, by changing mortgage providers you could be able to save hundreds of pounds per month.

In this article we go through what a remortgage is and what’s involved to help de-mystify the process and make you remortgage savvy.

What is a remortgage?

In a nutshell, remortgaging is when you consider swapping your mortgage deal from one deal to another, either with the same lender or a new one.

As with any other important purchase you consider, like looking for the cheapest phone bill or car deal, remortgaging allows you to shop around to see if your current mortgage deal is still the right option for you, or if there’s a better deal available elsewhere that now suits your current circumstances more.

Reasons why you might want to remortgage

With mortgage terms generally lasting for a large proportion of your life, from 25-30 years, people’s circumstances tend to change, and so the option of a remortgage could come in handy to better suit your current financial needs.

However, there are many reasons why you might want to remortgage:

  • To save money on your monthly repayments
  • To help raise money for any home improvements or extensions
  • Your current rate is up for renewal
  • You want to pay off debts
  • To make overpayments if you have more disposable income per month than was currently the case

So, how do I become remortgage ready?

In a very similar process to applying for a mortgage, lenders will want to make sure that you’re a low-risk borrower. Like before, you’ll be likely to under-go credit checks and need to provide proof of incomings and bank statements, so make sure your credit score is in good working order.

If you’re interested in knowing how much you could borrow, why not check out our monthly repayments calculator to see roughly what you could be paying per month.

However, sometimes lenders can charge a fee for ending your mortgage term early so make sure to consider this when weighing up the cost of remortgaging.

Whatever your reasons for remortgaging are, there are many options available to you and our advisers can help you make the right choice for you. So get in touch today if you want advice on your remortgage.

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

Related Posts

The Average Cost of Moving Home in the UK

The Average Cost of Moving Home in the UK

What is the average cost of moving home in the UK? If you’re considering moving house, it’s essential that you understand all the costs involved and how much these are likely to be, so that you can budget accordingly, compare quotes and assess how you could...

What are the benefits of using a mortgage broker?

What are the benefits of using a mortgage broker?

You probably already have at least some idea of what a mortgage broker does. But, for the avoidance of doubt, this is an adviser who will review available home loans based on your own financial situation, and apply for one for you. Some work over the phone or in...

Can I have more than one mortgage?

Can I have more than one mortgage?

People often ask us whether it’s possible for them to hold more than just the one standard mortgage at the same time. The short answer to that question is yes, it is definitely possible to have more than a single home loan at any one time. In fact, there’s no legal...

Five tips for increasing the value of your home

Five tips for increasing the value of your home

UK property prices saw a surprising, if modest, rise of 0.5% in April, following months of decline, according to figures from one of Britain’ s biggest lenders, the Nationwide. So a house-price crash has certainly been avoided. And if this news, plus the (mostly)...

What is a property chain?

What is a property chain?

You have almost certainly heard of a property chain – but would you be able to explain to someone else exactly what one is? Do you understand how chains work, or how you can manage them? In a nutshell, this circumstance arises when a group of property sellers and...

Can I Get a Mortgage with Bad Credit?

Can I Get a Mortgage with Bad Credit?

Bad Credit History & Mortgages If you’re one of the many people in the UK with a history of bad or adverse credit, you may automatically assume that you’ll be unable to find a mortgage. Whilst it can be harder to find the right mortgage product, it’s certainly not...

Share This

Share This

Share this post with your friends!