Key Facts Illustration (KFI) for remortgages

Key Facts Illustration (KFI): what it is and how to use it

If you’re remortgaging, you may have received a Key Facts Illustration (KFI) (sometimes called a European Standardised Information Sheet (ESIS)). It’s designed to present the key terms of a specific mortgage in a consistent format, so you can understand the deal you’ve been offered and compare it with alternatives.

A KFI is most useful when you treat it as a starting point: it shows the lender’s position at the time it was produced, but it doesn’t automatically mean the mortgage is the best fit for your circumstances.

Who the KFI is for

A KFI is issued to borrowers who are considering a mortgage product—this includes people who are:

• Remortgaging (switching to a new deal with a new lender or a new product with the same lender)
• Taking out a new mortgage

For remortgage customers, the KFI helps you understand what the new deal will cost and how it behaves over time, including the period after any introductory rate ends.

What a KFI covers (the information you should expect)

While wording and layout can vary by lender, a mortgage KFI is intended to include the core details that affect affordability and overall cost. Common items include:

• Mortgage amount and term
• Interest rate(s), including the APR (where applicable)
• Repayment type (e.g., repayment or interest-only)
• Estimated monthly repayments
• Total amount payable (over the mortgage term)
• Arrangement fees and other relevant charges
• Early repayment charges (ERCs) (where relevant)
• Valuation information (where it applies to the mortgage)
• Broker fees (if included in the illustration)
• Any special features or conditions that materially affect the deal

For remortgages, it’s particularly important to focus on the parts that explain what happens when the introductory period ends, and how any fees or ERCs could impact your options.

How long a KFI is valid for

A KFI is typically issued with a valid until date. This matters because mortgage pricing can change between the date the KFI is produced and the date you receive a formal offer.

If your KFI is approaching its end date, it can be worth checking whether the lender’s terms have changed before you commit.

Does a KFI guarantee the rate or the mortgage?

A KFI does not lock you into a mortgage and it does not guarantee that the terms will remain unchanged. It reflects the product information available at the time of issue.

Between receiving a KFI and getting a formal mortgage offer, changes can occur due to:

• lender pricing updates
• changes in underwriting or product availability
• timing differences (for example, if your circumstances or required documentation evolve)

For that reason, the KFI should be reviewed carefully, but also treated as something to verify against the final offer.

What to check in a remortgage KFI (practical checklist)

When you’re reviewing a KFI for a remortgage, the goal is to understand both cost now and cost later.

1) The introductory rate and what happens after

• Identify the initial rate period (e.g., fixed term length)
• Check the rate that applies after the introductory period ends (often referred to as the reversionary rate or SVR)
• Consider how repayments could change when the deal moves to the next rate stage

2) The true cost: fees, APR and total payable

• Look beyond the headline interest rate
• Compare arrangement fees and any other upfront costs
• Review the APR (or APRC where shown) and the total amount payable

3) Early repayment charges (ERCs)

• Check whether ERCs apply if you repay or switch again soon after taking the new mortgage
• Understand how ERCs could affect future flexibility

4) Repayment method and affordability

• Confirm whether the mortgage is repayment or interest-only
• Make sure the estimated monthly repayments align with your budget, including the likely position after any introductory period

5) Any special conditions

Some mortgages include features that can materially affect cost or suitability, such as:

• portability permissions
• offset-related arrangements (where applicable)
• product-specific conditions that may not be obvious from the rate alone

KFI vs Agreement in Principle (AIP)

It’s easy to confuse different mortgage documents, but they serve different purposes.

• An Agreement in Principle (AIP) (sometimes called a mortgage in principle or decision in principle) indicates how much a lender may be willing to lend, typically based on limited information.
• A KFI sets out the specific product details—the terms, costs and key features of a particular mortgage option.

In short: an AIP is about capacity, while a KFI is about the deal.

Who provides the KFI?

A KFI can be provided by:

• the lender (if you apply directly)
• a mortgage broker/adviser (if you’re arranging the mortgage through advice)

In either case, the KFI is intended to present the same type of key information about the mortgage product being illustrated.

Why reviewing your KFI matters

A KFI can be invaluable because it makes the key costs and terms easier to understand. However, because it represents one lender’s offer at one point in time, it may not reflect the best overall balance of:

• interest rate vs total cost
• fees vs flexibility
• repayment profile vs your future plans

A careful review helps you spot the details that affect long-term affordability—especially for remortgages where your existing mortgage history and future intentions (such as switching again) can influence what matters most.

Using your KFI to compare options

If you have more than one KFI available, comparing them becomes much clearer. Even if you only have one KFI, you can use it to identify what to look for when assessing alternatives—such as the rate structure, fees, and ERC position.

A well-used KFI helps you ask the right questions, including:

• Is the cost after the introductory period realistic for my budget?
• Are the fees and ERCs aligned with how long I’m likely to stay?
• Does the product’s structure suit my circumstances and plans?

Key takeaways

• A KFI/ESIS is a standardised document showing the key terms and costs of a specific mortgage product.
• It helps you understand monthly repayments, total payable, fees, and ERCs.
• A KFI is not a guarantee—terms can change before the formal offer.
• For remortgages, focus on what happens after the introductory rate ends and how fees/charges affect long-term cost.

Summary

A Key Facts Illustration is designed to make mortgage terms easier to compare and understand. For remortgage customers, it’s an essential document for checking the cost structure of the deal you’re considering—particularly the rate after any introductory period and any early repayment charges. Treat the KFI as a clear snapshot of one option, then use it to assess whether it truly fits your remortgage goals and budget.