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What is remortgaging?

Remortgaging is when you move your mortgage on your existing property, from one lender to another. Your new mortgage will then replace your old one.

You may want to remortgage if you’re:    

  • Coming to the end of your existing mortgage deal
  • Searching for a deal that better suits your needs
  • Planning to borrow more money against your property

How does remortgaging work?

Here are the key steps if you’re looking to remortgage:

1. Do your research

There are many mortgage deals on the market, and it can help to shop around to find the right one. This includes asking your current lender what rates they can offer and whether you can switch to a new mortgage rate with them before looking elsewhere.

Remember – advice and support is available to help you decide if it’s the right time to remortgage and the mortgage rates available.

2. Consider remortgaging costs

There may be costs when moving your mortgage to a new lender, so take time to understand if it’s financially worthwhile. Calculate your new mortgage repayments to see if the benefits of remortgaging outweigh any costs involved in doing so.

These costs can include:

3. Get a Decision in Principle

A Decision in Principle – also known as an Agreement in Principle – gives you a clear idea of how much you could borrow based on your circumstances. 

Getting a Decision in Principle doesn't commit you to anything. And it's not a guarantee that your mortgage application will be accepted. It involves a soft credit check to look at your credit history and don't worry, this won't affect your credit score

Explore: Get a Decision in Principle

4. Apply for your remortgage

If you're happy with the Decision in Principle, you can apply for your new mortgage. This can be done online, in a branch, or over the phone. 

Your new application will involve a hard credit check and you will be asked to provide a number of supporting documents.

5. Complete the legal work

Even though you're not buying a new property, remortgaging does involve some legal work. Some lenders will appoint a solicitor or licensed conveyancer for you, or you may be able to choose your own.

A solicitor or licensed conveyancer will manage the paperwork and any transfer of funds. They’ll check that your new mortgage amount is enough to pay off your existing lender and send you the legal documents to read and accept. 

Explore: What to expect in the remortgaging conveyancing process

6. Review your offer

Your new lender will need to arrange a valuation of your property to check that it’s suitable for mortgage purposes. Once this is completed and your lender has approved your application, they’ll send you an offer for you to review and accept.

7. The final step

When your new mortgage is set up and the legal work has been done, you’re ready for completion. The completion date is when your new mortgage starts, and your old mortgage is repaid. Your new lender will then let you know the date and amount of your first new mortgage payment.

How long does the remortgage process take?

Remortgaging your home typically takes 4 to 8 weeks after applying. The amount of time needed will depend on your circumstances and remortgage needs.

Providing clear, accurate, and relevant documents when needed (such as proof of earnings) can speed up the process.

When should you remortgage?

You can remortgage anytime. However, to avoid potential early repayment charges, people tend to consider remortgaging towards the end of their existing mortgage deal.

If you choose not to review your mortgage rate before it ends, you’ll likely move onto your lender’s standard variable rate (SVR) and potentially pay more. The SVR is usually higher than your previous rate. 

If you’re not coming to the end of your existing mortgage rate, you’ll need to check whether there’s an early repayment charge or fee for exiting your current mortgage.

Think carefully before securing other debts against your home.

Your home may be repossessed if you do not keep up repayments on your mortgage.