Remortgaging means switching your current mortgage to a new one, either with the same lender or a different one. It’s something most people do when their fixed deal ends, but it can also be used to release money, reduce monthly payments, or get a more flexible deal. Some people remortgage because they’ve had a change in income or want to simplify their finances. Whatever your reason, it’s worth exploring your options.
Why people remortgage
To save money
If your current mortgage deal is ending soon, you’ll probably be moved onto your lender’s Standard Variable Rate (SVR). This rate is often a lot higher, which means your monthly payments could go up. Remortgaging before this happens gives you the chance to lock in a better deal and keep your costs down. Even a small drop in interest can save you hundreds of pounds each year.
To get a better rate
Even if your deal isn’t ending yet, your circumstances might have improved. For example, you might have built up more equity in your home or improved your credit score. That can mean access to better rates, especially if your loan to value (LTV) has dropped into a lower band. Lenders often reward lower-risk borrowers with lower interest rates.
To borrow more
Need money for a new kitchen, loft conversion or wedding? Remortgaging can allow you to borrow extra funds by increasing your loan. It’s often cheaper than using a personal loan or credit card, but your repayments may rise, and you’ll be borrowing over a longer term. Always think carefully before increasing what you owe against your home.
To pay off debts
Some people choose to remortgage to consolidate debts, bringing things like loans or credit card balances into their mortgage. This can make monthly outgoings easier to manage, but it's important to get advice. Your home is on the line if you don’t keep up with repayments. You may also end up paying more interest overall, as mortgages are typically longer term.
To get more flexibility
Remortgaging gives you the chance to find a deal that lets you overpay, take payment holidays, or switch to something more flexible if your income varies. This can help if you’re self-employed, work seasonally, or are planning time off.
Because life’s changed
Life can move on quickly. Whether you’ve separated from a partner, started a family, or are thinking about buying another property, your current mortgage may no longer suit you. Remortgaging could help make things easier or free up options for your next steps. It can also help you prepare for big life events.
Reasons for not remortgaging
No time
This is one of the most common reasons people give. Life’s busy, and mortgage admin doesn’t always make it to the top of the list. But acting early can stop you from rolling onto a much higher rate without realising. It’s worth setting a reminder a few months before your deal ends.
Remortgage confusion
Mortgages come with a lot of jargon and paperwork, which can feel overwhelming. But your L&C adviser is there to keep things simple. They’ll explain everything in clear language and take care of the hard work. You don’t need to be a mortgage expert, that’s what we’re here for.
Distrust of the mortgage process
Some people worry they’ll be pushed into something that doesn’t suit them. But your L&C mortgage adviser works for you, not a bank, and they’ll only recommend what’s right for your situation. There’s no pressure, and their advice is completely free. You’ll stay in control at every stage.
Unaware of possible savings
Even a small drop in your interest rate could save you hundreds or thousands over a year. It’s always worth checking what you could get elsewhere. You might be surprised by what’s available.
Happy with current deal
That might be true, but lenders change their offers all the time. A quick review could show there’s something even better available. It’s worth being sure. And checking now doesn’t commit you to switching.
When should I remortgage
- Your current deal ends in the next 6 months
- You’ve paid off a chunk of your mortgage or your home’s gone up in value
- You need to borrow money for home improvements or other big expenses
- You’ve had a change in circumstances like divorce or a new job
- You want to switch to a deal with more flexibility or lower payments
If any of these sound like your situation, it’s worth getting started. Some lenders let you secure a deal up to 6 months in advance.
How to remortgage
Check your current deal
Look at your mortgage statement or contact your lender to find out when your current deal ends and whether you’d face an early repayment charge. If your deal ends in the next 6 months, it’s a good time to start planning. Knowing your end date helps avoid any gaps or overlaps.
Speak to your L&C mortgage adviser
Your adviser will ask about your goals, whether you want to save money, borrow more, or find something more flexible. They’ll look at your current deal, compare it with the latest options from across the market, and explain your choices. There’s no charge and no obligation.
Get a personalised recommendation
Once your adviser has all the information they need, they’ll come back to you with a tailored recommendation. You’ll see exactly what the deal looks like and how much you could save. If you have questions, they’ll talk you through the details.
Let your adviser handle the paperwork
If you’re happy to go ahead, your adviser will take care of the application and help guide you through the process. They’ll also flag any costs like arrangement fees or legal work so you’re not caught out. Most remortgages come with free legals and a free valuation.
Don’t pay more than you need to
Your adviser can make sure your new deal is lined up to start as soon as your current one ends, so there’s no expensive gap on your lender’s SVR. You’ll get peace of mind knowing everything’s covered.
Remortgage terms
Mortgages come with a lot of terms that aren’t always clear. Here’s a quick guide to the ones you’re most likely to come across:
LTV (Loan-to-Value)
This is the size of your mortgage compared to the value of your home. A lower LTV usually means better rates. For example, if your home is worth £200,000 and you owe £100,000, your LTV is 50%.
SVR (Standard Variable Rate)
This is your lender’s basic rate. It often kicks in when your deal ends, and it’s usually more expensive. It can change at any time, so your payments could rise without warning.
ERC (Early Repayment Charge)
Some deals come with a penalty if you leave them early. Your L&C adviser will check this before recommending a switch. It’s important to know if charges apply before making changes.
Fixed rate
A fixed rate means your monthly payments stay the same for a set period, usually 2, 3 or 5 years. It gives you certainty and helps with budgeting.
Tracker rate
Tracker mortgages follow the Bank of England base rate. Your payments can go up or down over time. It’s a good option if you think rates might fall, but it’s less predictable.
Product fee
This is what a lender might charge to set up a new mortgage deal. Sometimes it’s called an arrangement or booking fee. Some deals don’t have one at all.
Free legals / free valuation
Some remortgage deals include a solicitor and property valuation at no cost to you, though the legal service might be more basic. Always check what’s included. Other lenders may offer a cash incentive to help you find your own solicitor. Your L&C adviser will be able to find the best option for your needs,
Remortgaging doesn’t have to be hard
If you haven’t reviewed your mortgage for a while, it’s a good idea to speak to your L&C adviser. They’ll help you make sense of your options, explain what’s possible, and guide you through the whole process, for free.
Even if you decide to stick with your current deal, you’ll have peace of mind knowing you’re not missing out.
