Mortgages for Home Owner Remortgage

If you're a homeowner thinking about remortgaging, you're in good company. Many people review their mortgage when a fixed or discounted deal comes to an end, looking to reduce monthly payments, secure a more suitable term, or access equity for a specific goal.

A remortgage is essentially switching your existing mortgage to a new deal—without moving house. The right option can improve your financial flexibility, but it's important to weigh up the costs, the timing, and how your circumstances may have changed since you took out your current mortgage.

This page explains how remortgaging works, the common reasons homeowners choose it, and what to expect from the process.

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Why homeowners remortgage

Most mortgage deals are time-limited. When your current term ends, your mortgage may move onto a lender's Standard Variable Rate (SVR), which is often higher than the rates available on new products.

Remortgaging can be considered for several reasons:

• Lowering your interest rate: If you can secure a better rate than your current one, you may reduce the amount of interest you pay.
• Avoiding SVR: Planning ahead can help you avoid being placed on a rate that may not be competitive.
• Rebalancing your monthly payments: Some homeowners remortgage to change the term or payment structure to better match their budget.
• Releasing equity: If your property has increased in value and/or you've built up equity, you may be able to release funds for home improvements, consolidating debts, or other priorities.
• Changing the type of deal: For example, moving from a fixed rate to another fixed term, or choosing a different structure that better fits your plans.
• Consolidating debts: In some cases, remortgaging can be used to bring higher-interest borrowing together—though it may increase the overall cost depending on the term.

Timing matters. Starting your review early gives you room to compare options and consider any fees that could apply.

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What a remortgage involves (in plain terms)

Remortgaging usually falls into one of two broad routes:

1. Product transfer (staying with your existing lender)

   • Often the simplest option.
   • You may be able to move to a new deal with less paperwork than switching lenders.

2. Switching lenders (moving to a new mortgage provider)

   • You apply for a new mortgage product, and the existing mortgage is repaid as part of the switch.
   • This route may involve a valuation and more detailed lender checks.

In both cases, the goal is to secure a mortgage that fits your current needs—while understanding the total cost over time.

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Mortgage types and options to consider

When remortgaging, you'll encounter decisions about how your mortgage is structured. Understanding the options can help you choose what fits your circumstances.

Repayment or interest-only?

Repayment mortgages

• Your monthly payments cover both interest and part of the balance.
• The debt reduces over time, so you'll clear the mortgage by the end of the term.
• This is the most common option for residential mortgages.

Interest-only mortgages

• Your payments cover interest only, and the capital is repaid at the end of the term.
• You'll need a credible plan for repaying the capital (such as investments, savings, or selling the property).
• Lenders may have stricter requirements for interest-only mortgages.

Switching between them

• You may be able to switch from interest-only to repayment when you remortgage.
• Moving from repayment to interest-only is less common and subject to lender approval and affordability checks.

Fixed rate or variable rate?

Fixed-rate mortgages

• The interest rate stays the same for a set period (commonly 2, 3, 5, or sometimes 10 years).
• Your monthly payments are predictable, which helps with budgeting.
• If rates fall during your fixed period, you won't benefit automatically.

Variable-rate mortgages

• The interest rate can change over time.
• Different types include:
  • Tracker mortgages: typically move in line with an external benchmark (such as the Bank of England base rate).
  • Standard variable rate (SVR): set by the lender and can move differently.
  • Discounted or capped deals: may limit how high the rate can go or offer a discount for a period.

Choosing between them

• Fixed rates offer certainty and are popular with people who value predictable payments.
• Variable rates may start lower but come with the risk of payments increasing.
• Your choice depends on how comfortable you are with payment changes and your outlook on interest rates.

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Special circumstances

Remortgaging options can vary depending on your situation. Here are some common scenarios and what to consider.

Can you remortgage with bad credit?

It may be possible, but it depends on the type of credit issue, how long ago it occurred, and how your finances look now.

Lenders may treat different credit events differently

• Missed payments, defaults, or CCJs may affect the options available.
• The recency and severity of the credit issues matter.
• Some borrowers may need a specialist approach to find a product that fits their circumstances.

What to expect

• You may face higher interest rates or a more limited choice of lenders.
• Affordability checks will still apply.
• Specialist lenders or a broker with experience in adverse credit cases may be helpful.

Can you remortgage an interest-only mortgage?

Yes, it's often possible to remortgage an interest-only mortgage once your current deal ends.

What lenders will consider

• Your repayment plan for the capital at the end of the term.
• Whether the loan-to-value is still within acceptable limits.
• Your current income and affordability.

Things to think about

• Switching to repayment can help reduce the capital over time.
• Staying on interest-only means you'll need a robust repayment strategy.
• Lenders may have stricter criteria for interest-only borrowers.

Can you remortgage if you own your home outright?

In some cases, it may be possible to take out a new mortgage against the property even if you don't currently have one. This is sometimes referred to as an "unencumbered" property scenario.

Why people do this

• To release equity for home improvements or other purposes.
• To take advantage of tax planning or investment opportunities.
• To spread the cost of a large expense over time.

Considerations

• You'll go through a similar application process as any mortgage applicant.
• The property will need to meet lender criteria.
• Your income and affordability will be assessed.

What is mortgage porting?

Mortgage porting is where you move your existing mortgage deal to a new property, rather than ending it. It's commonly considered when you're moving house while still tied into a fixed-rate deal.

How it works

• You take your current mortgage terms with you to your new property.
• The lender will assess the new property and your affordability.
• You may be able to borrow more if you need to.

Advantages

• You can avoid early repayment charges on your existing deal.
• You keep your current interest rate if it's favourable.

Considerations

• The new property must meet the lender's criteria.
• Porting isn't guaranteed—it depends on the lender's rules and your circumstances.
• You may need to borrow additional funds, which could be at a different rate.

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Getting ready to remortgage: a practical checklist

Preparation can make the process smoother and reduce the risk of delays. Here's a practical checklist to help you get organised.

Plan ahead

Many remortgages take time to arrange. Allowing a window of several months can help you avoid rushing decisions—especially if your current deal is due to end.

A common approach is to start looking around six months before your current deal finishes.

Clarify what you want from the new deal

Ask yourself:

• Are you remortgaging mainly for a better rate?
• Do you want to change the term or repayment type?
• Do you need to borrow more money?

Review your current mortgage documents

Check your existing mortgage paperwork for details such as:

• The end date of your current deal
• Whether there are any early repayment charges if you switch early
• Any fees already charged by your current lender
• Your current balance and remaining term

Understand your loan-to-value (LTV)

LTV is a key factor in mortgage pricing. It's based on the relationship between your mortgage balance and the property value.

Having an estimate of your property's current value can help you understand which LTV band you're in and what rates might be available.

Check your credit file

Lenders will look at your credit history as part of the application process. If there are inaccuracies, correcting them before you apply can help.

Tips:

• Check your credit report with the main credit reference agencies.
• Look for any errors or outdated information.
• Avoid applying for new credit in the months leading up to your remortgage.

Consider affordability realistically

Even if a lender offers a product, it must still be affordable based on your income, outgoings, and commitments. Remortgaging can change your monthly payment, so it's important to model the impact.

What lenders look at:

• Your income and employment status
• Your regular outgoings and commitments
• Any changes in your circumstances since you took out your original mortgage

Gather the right information

You may need documentation to support your application, including:

• Proof of identity (passport, driving licence)
• Proof of address
• Proof of income (payslips, tax returns, accounts if self-employed)
• Bank statements (usually 3-6 months)
• Details of your current mortgage
• Information about your property

If you're self-employed, lenders often require additional evidence of income and may look at trading history over a longer period. Having your records organised can help.

Understand the timeline

A remortgage typically involves steps such as:

• Application
• Lender checks and underwriting
• Valuation (if switching lenders)
• Legal work (if switching lenders)

Knowing what's involved can help you plan around any deadlines.

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The remortgage process: what to expect

While every case is different, the process typically follows a familiar pattern:

• Review your current mortgage: Understanding your existing deal, the end date, and any early repayment implications.
• Assess your goals: Whether you want to lower payments, reduce interest, change term, or release equity.
• Consider costs and trade-offs: Arrangement fees, valuation costs, legal fees, and any early repayment charges may affect the overall benefit.
• Gather information: Lenders usually require documentation such as identification, income details, and information about your current mortgage.
• Lender assessment and valuation: If you're switching lenders, a valuation is commonly required.
• Mortgage offer and completion: Once a mortgage offer is issued, the remortgage can proceed to completion.

Many homeowners find that planning ahead reduces stress—particularly if your current deal is due to end soon.

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Pros and cons of remortgaging

Remortgaging can be beneficial, but it's not always the best move for every situation. Here are the key factors to consider.

Potential advantages

• More competitive rates compared with your current deal.
• Improved monthly affordability by adjusting the term or payment structure.
• Access to equity if your home value and mortgage balance support it.
• Better alignment with your plans, such as choosing a term that matches your expected timeline.

Potential drawbacks

• Early repayment charges may apply if you switch before the end of your current deal.
• Fees can add up, including arrangement fees, valuation costs, and legal fees.
• Extending the term to reduce monthly payments can increase the total interest paid over the life of the mortgage.
• Affordability checks may be more stringent than when you first took out your mortgage.

A balanced comparison helps you understand whether the benefits outweigh the costs.

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When remortgaging may NOT be a good idea

Remortgaging isn't automatically beneficial. In some situations, the costs, timing, or your circumstances may mean staying on your current deal is more sensible.

It may be worth being cautious if:

• You have a strong deal already and the new option doesn't improve the overall picture once fees and charges are considered.
• You're early in a fixed period and early repayment charges would be significant.
• Your equity is limited and you may find fewer competitive options.
• Your circumstances have changed since you took out the mortgage (for example, changes to income, employment, or household finances).
• Your credit profile has worsened due to missed payments or other adverse history.
• Your mortgage balance is relatively small, where fees can have a bigger impact.
• You're close to the end of the mortgage term, where switching costs may not be worthwhile.
• Your loan-to-value has changed—if your LTV is higher than before, the options available may be less favourable.

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Alternatives to remortgaging

If remortgaging isn't the right option, there may be other ways to meet your goals—depending on what you're trying to achieve.

Second charge mortgages (secured loans)

A second charge mortgage is additional borrowing secured against your property, alongside your existing mortgage. This can be an option if you can't remortgage your first charge or need extra borrowing outside the remortgage process.

Considerations:

• Second charge loans often have higher interest rates than first-charge mortgages.
• They may be suitable for shorter-term borrowing needs.
• Your existing mortgage remains in place, which can be helpful if you're locked into a good deal.

Personal loans

If you only need a smaller amount, a personal loan may be considered.

Considerations:

• Repayment terms are often shorter than mortgages, which can mean higher monthly payments.
• Unsecured personal loans don't put your property at risk.
• Interest rates can vary significantly depending on your credit profile.

Equity release (for eligible borrowers)

For borrowers meeting the age requirements, equity release products may be an option to access some of the value in a property.

Considerations:

• These are complex products that can affect long-term finances and inheritance.
• They're typically aimed at older homeowners (usually 55+).
• Professional advice is strongly recommended before considering equity release.

Product transfer (staying with your lender)

If your main goal is to avoid SVR but you don't want to go through a full remortgage process, your existing lender may offer product transfer options.

Considerations:

• Often simpler and quicker than switching lenders.
• You may still have more competitive options available elsewhere.
• It's worth comparing against what other lenders can offer.

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Costs to consider before you remortgage

Remortgaging costs vary depending on the deal and your circumstances. Common items include:

• Early repayment charges (if applicable)
• Arrangement fees
• Valuation fees
• Legal fees
• Product fees or other lender-specific charges

It's also worth considering the timing of the switch. Starting your review around the time your deal is due to end can help you avoid unnecessary charges.

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How long does a remortgage take?

Timelines depend on whether you're transferring products with your existing lender or switching to a new one.

• Product transfers can often be completed relatively quickly.
• Switching lenders typically takes longer due to lender processing and valuation requirements.

Planning ahead is especially helpful if your current deal is ending soon.

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What information you may need

Lenders commonly request documentation to support their affordability and identity checks. This may include:

• Proof of identity
• Proof of income
• Bank statements
• Details of your current mortgage
• Information about your property and any existing borrowing

Having key documents ready can help keep the process moving.

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Choosing the right remortgage option

The "best" remortgage is the one that fits your circumstances—not just the one with the lowest headline rate. A sensible comparison usually considers:

• Total cost over the period you plan to stay on the mortgage
• Whether fees and any early repayment charges reduce the overall benefit
• How the term and monthly payments affect affordability
• The type of deal and how it matches your plans

A structured review can help you compare options more confidently.

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Frequently asked questions

Do I need a solicitor to remortgage?

It depends on the route you take. If you switch deals with the same lender (often a product transfer), legal work may be minimal. If you move to a new lender, legal processes are typically required to transfer the mortgage.

What happens on remortgage completion day?

On completion, the remortgage funds are used to repay your existing mortgage. The new lender then becomes responsible for collecting your future payments under the new agreement. Your payments will begin under the new terms from this point.

Can I remortgage while still on a fixed rate?

You can usually apply, but early switching may trigger an early repayment charge (ERC). Whether it's beneficial depends on the terms of both your current and new deals—the savings from the new mortgage need to outweigh the cost of leaving your current deal early.

Does remortgaging affect my credit score?

Remortgaging can involve credit checks, and the impact varies depending on the type of checks and how quickly you complete the process. Lenders will carry out affordability and credit assessments, which may appear on your credit file. Keeping applications and supporting information accurate can help avoid unnecessary complications.

Can I remortgage to pay off debt?

In some situations, borrowers remortgage to borrow additional funds and clear other debts. This can be appropriate where it improves overall affordability, but it also means extending the debt over the mortgage term—so it's important to consider the long-term impact.

Do I need a deposit to remortgage?

Usually, remortgaging does not require a separate deposit because you are not buying a new property. Instead, the key factors are your equity (the difference between your property value and mortgage balance) and the lender's LTV requirements.

Is it necessary to use a mortgage broker?

You can approach lenders directly, but a broker can help you understand which options align with your circumstances and goals, and can support the process from comparison through to application. A broker may also have access to deals not available directly from lenders.

How much equity do I need?

Lenders' requirements vary, but having more equity can generally improve your options. A valuation and lender assessment will determine what's available based on your property's value and your mortgage balance.

What happens to my current mortgage?

Your current mortgage is replaced by the new mortgage once the remortgage completes. Until completion, your existing mortgage terms typically remain in place.

Can I remortgage early?

Yes, but you may have to pay ERCs if you leave your current deal before it ends. Whether it makes financial sense depends on the numbers—especially the difference between your current cost and the cost of the new deal.

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Related mortgage topics

If you're exploring your wider mortgage options, you may also find it useful to review other mortgage guides on the site, including:

• Mortgage information
• Find mortgage deals
• Remortgage guides
• Remortgage FAQs
• Remortgage case studies

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Important note

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