Remortgage

A remortgage is when you move your mortgage on your existing property from one lender to another, or change to a new deal with your current lender. There are a variety of reasons you might do this, but it’s most common when homeowners are coming to the end of their current mortgage deal. It’s always worth shopping around for a good deal on your property remortgage, rather than just staying with your existing lender. Timing is important too, as once you reach the end of your deal, you’ll be switched to their Standard Variable Rate – and that means you could end up paying more interest. Some people also choose to remortgage in the middle of their mortgage deal in order to switch to a better rate. If you do this, you may be subject to Early Repayment Charges, but we can help you work out whether now is the right time to remortgage. Another reason some owners will want to remortgage their property is if they’re looking to borrow more money against it, for example to fund home improvements.

If you want to remortgage your house or flat, timing is everything. Switch too early and you may be subject to Early Repayment Charges on your current mortgage which will reduce any benefits of cheaper mortgage deals – but leave it too late and you could find yourself paying over the odds. Getting a new deal in place before your existing mortgage deal expires can avoid you paying an expensive Standard Variable Rate. It’s a good idea to start thinking about your next mortgage deal 6 months from your end date and some lenders will even let you ‘lock in’ to a new deal at this time.

The amount you can borrow on a remortgage will depend on both your income and how much equity you have in the property. Although many people just look to switch their mortgage over to a better deal it can also be a good time to raise additional money for things such as home improvements. You can get an idea of how much you could borrow on a remortgage and what it might cost by using our online Mortgage Finder.

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