How do I remortgage my home?

People choose to remortgage their home for a number of reasons.

Some want to reduce their monthly repayments or reduce other debts. Others want to change the terms of their mortgage to make it more flexible and suit their current needs. Others may want to release equity built up in their home.

There are many factors involved in getting a new mortgage, and the process may seem complex and time consuming but don't worry, we don't expect you to take it all on yourself – we are here to advise you at every step of the way and to do most of the work for you. Simply give us a call and we can guide you through your remortgage from start to finish.

Still, it is always good to get clued up... so read on to find out more about what is involved in remortgaging, and how to ensure you'll find a new mortgage that is right for you and your circumstances.

Working out how much you can afford to pay

The first step in getting a remortgage is working out how much you can afford to pay. And this involves getting all the relevant remortgaging paperwork together.

You'll need to find your recent mortgage and bank statements to see what your current interest rate is and how much you are paying each month.

This is also a good time to consider what you could afford if your monthly repayments increased.

Although many people change lenders to reduce their monthly repayments, others want to make their mortgage more suitable to them – perhaps switching from a variable rate to a fixed rate. In some cases, your monthly outgoings could increase when you choose a new lender so it's important to know what you could afford.

You can use our mortgage calculators to find out how much your repayments are likely to cost you.

You should also factor in how much you can afford to spend on additional fees, which we will come to next.

Investigating what costs are involved in remortgaging

There are usually some costs involved when switching your mortgage to a new lender. These include an arrangement fee paid to your new lender for setting up the mortgage, as well as potential valuation and legal fees. You may have to pay an exit fee for leaving your current lender.

Certain fees can be added to your mortgage balance, but remember that you'll be paying interest on them if you do. If paying them up front, make sure you budget for them.

Fortunately, many remortgage deals will have low or sometimes even no set up costs – as part of our advice, we always check that any new deal is worthwhile based on both the interest rate and any fees involved.

The good news is that whether there are set up fees to pay or not, you won't pay a fee for our advice.

Checking if your current mortgage has restrictions. Don't assume that you're free to leave your current deal whenever you want. You may be tied in with Early Repayment Charges (ERCs) and these can be costly. Check with your current lender whether you have ERCs, how much they are and when they end.

Looking around for a new mortgage

When looking for the best mortgage deals to suit you, you're likely to find a lot to choose from and selecting the right one may seem daunting. This is where using an independent mortgage broker is your best option as they'll do all the research for you.

If you approach your current bank for advice on good mortgage deals, they're likely to only suggest their own rates.

A broker, however, will compare offers from across the market – helping you find the best possible deal for you.

Checking what your current lender is able to offer

Before you commit to a new mortgage agreement, we'd advise you to check what your current provider what they can offer you – they may have some good deals available for existing customers.

You can then compare what they offer with what you can get by switching to a new lender.

Submitting your application

Once we've researched everything for you, found a good deal and you've decided that a new mortgage is right for you, it's then time to submit your application.

Before you do that, we'll send you a Key Facts Illustration (KFI) for the deal we've recommended which sets out all you need to know about the mortgage, what it costs and what fees are involved.

At this point you should get together the documents that a lender will ask for when assessing your application, such as ID, recent payslips and bank statements.

In most cases, we'll submit your application on your behalf – we can take the information from you over the phone, saving you the hassle of lengthy application forms.

Getting your mortgage offer

Once your application has been submitted, we'll assign you a case manager who will help you get your new mortgage up and running. Your new lender will be assessing both you and the property (by way of a valuation) before issuing a mortgage offer and we can liaise with them on your behalf to make the process as smooth as possible.

There's also the legal work to be done – lenders will often appoint their own solicitors or conveyancers for a remortgage but if you need to appoint one, we can recommend one for you.

Once your mortgage offer has been issued, double check the information the lender sends you and make sure everything is correct before you complete. If you're unsure of anything, we're happy to discuss with you.

We hope this guide has helped you understand how to remortgage your home. I know this may see an extensive list, but don't be alarmed, we will do all this for you. If you'd like some further advice or perhaps you've even already decided that it's time for you to find a new lender and you'd like to get started, give one of our expert mortgage advisers a call.

Remember, if you do decide to remortgage your home through us, we will not charge you a broker fee.

Call our expert
advisers now
Call free from mobile or landline
Open 7 days a week