Remortgage guide

What is remortgaging?

Remortgaging is moving your existing mortgage onto a new deal. There are two routes: stay with your current lender through a product transfer, or move to a new lender. Most people remortgage when their fixed or tracker deal ends, but you can also remortgage to raise money, change your term or change who is on the mortgage.

If you do nothing when your deal ends, your mortgage usually moves onto your lender’s standard variable rate. Our remortgage page compares product transfers, switching lender and further advances side by side.

We contact all our clients around six months before their deal ends, so there’s time to compare your lender’s offer with the rest of the market.

Can you remortgage before your deal ends?

Yes, many lenders let you secure a new deal up to six months before your current one ends, ready to start when it finishes. Leaving during your current deal period usually means paying an early repayment charge, which is set out in your mortgage offer.

Early repayment charges are usually a percentage of the mortgage balance, and they often reduce each year of the deal. Your current mortgage offer or annual statement shows how much the charge is and when it ends.

If you’re already on your lender’s standard variable rate, there’s usually no early repayment charge to move.

Every lender has its own criteria, and which option suits you depends on your circumstances.

Can you remortgage to release equity?

Yes, subject to the lender's criteria. Releasing equity means borrowing more against your home when you remortgage, for example for home improvements, a family gift or a deposit on another property. Lenders look at your income, your outgoings, your credit profile, the value of your home and what the money is for.

Equity is the difference between your home’s value and what you owe on your mortgage. Lenders work out your loan-to-value, or LTV, which is your mortgage as a percentage of your home’s value. Borrowing more increases your LTV and means your mortgage will cost more overall.

A further advance from your current lender, alongside your existing mortgage, is another way to borrow more.

Criteria vary from lender to lender, so what suits you depends on your circumstances.

Can you remortgage for home improvements?

Yes, many homeowners remortgage to pay for extensions, loft conversions, new kitchens or other work on their home. They’ll consider how much you want to borrow, your affordability, your loan-to-value and the work you’re planning, and some may ask for quotes or plans.

The amount you can raise depends on your income, outgoings and credit profile, as well as the current value of your home.

It all depends on the individual lender’s criteria and your circumstances.

Can you remortgage to consolidate debt?

Yes, it's widely allowed, subject to each lender's criteria. Debt consolidation means raising money when you remortgage to pay off other borrowing, such as loans, credit cards or car finance, so you have one monthly payment. The debts, your affordability and your loan-to-value are all assessed, and each lender has its own criteria.

Spreading short-term debts over the length of a mortgage can lower your monthly payments, but it can mean paying more interest overall. We’ll always talk through whether it’s right for your situation.

Can you remortgage to add or remove someone from the mortgage?

Yes, with the lender’s agreement and if the affordability works. Changing who owns the property and who is on the mortgage is called a transfer of equity. It’s often used after a separation, to buy out an ex-partner, or to add a new partner. The key question is whether the people remaining on the mortgage can afford it.

Taking over the mortgage on your own means lenders assess your income, outgoings and credit profile alone. Raising extra money to buy out the other person’s share is also possible, depending on affordability and your loan-to-value.

A transfer of equity needs legal work to change the names on the title deeds, as well as the lender’s agreement.

What’s possible depends on the lender and your situation.

Can you remortgage if your income has changed?

Yes, a change in income doesn’t automatically stop you remortgaging. If you’ve become self-employed, changed jobs, gone part time or are on maternity leave, lenders look at your current income, how it’s made up and how long you’ve had it. Each lender has its own criteria for different types of income.

Where you’re not borrowing more, a product transfer with your current lender doesn’t always involve a full affordability check, depending on the lender. Switching lender or raising money usually means a full application.

Our self-employed mortgages page explains how we help company directors, sole traders and contractors.

Which option suits you depends on your circumstances and the lender’s criteria.

Can you remortgage with bad credit?

Yes, depending on your credit profile. There can be options to stay with your current lender on a new deal, or to move to a lender whose criteria fit your credit history. What matters is the type of credit issue, when it happened, the amount and whether it has been settled.

Our bad credit mortgage guide explains what we need to know about each type of credit issue, and Harry, our complex credit specialist, can talk your situation through in confidence.

Lending decisions depend on each lender’s individual criteria.

Can you remortgage if your home has gone down in value?

Yes, a fall in value doesn’t rule out remortgaging. A lower property value increases your loan-to-value, which can change the deals available to you when switching lender. A product transfer with your current lender doesn’t always involve a new valuation, depending on the lender, so staying can be an option.

With negative equity, where you owe more than your home is worth, switching to a new lender is usually harder, and a product transfer with your current lender may be the main option.

Options differ between lenders and depend on your circumstances.

Can you change your mortgage term or repayment type when you remortgage?

Yes, you can ask to lengthen or shorten your mortgage term, or move between repayment and interest-only, when you remortgage. Your age, your income now and in retirement, and your affordability are all taken into account. Mortgage terms can go up to 40 years, depending on your age.

A longer term lowers your monthly payments but means paying more interest overall. A shorter term raises your payments but clears the mortgage sooner. Moving to interest-only means meeting the lender’s interest-only criteria, including a plan to repay the loan at the end of the term.

If your mortgage runs into retirement, lenders look at your expected retirement income. Our retirement interest-only mortgages page covers options from age 55.

This is subject to the lender’s criteria and your circumstances.

Can you remortgage to buy another property?

Yes, releasing equity to use as a deposit on a buy-to-let property or a second home is possible, subject to the lender's criteria. Affordability on both mortgages, your loan-to-value and what the money is for are all assessed, and criteria vary between lenders.

Raising money from your home for a deposit means your home is security for the extra borrowing. Our buy-to-let mortgages page explains how buy-to-let lending works.

Rules vary between lenders, so your circumstances decide the best fit.

What documents do you need to remortgage?

Most lenders ask for photo ID, proof of address, your latest mortgage statement, your last three months of payslips and bank statements, and your latest P60. Self-employed homeowners usually provide tax calculations and tax year overviews, or company accounts. Fewer documents are often needed for a product transfer, depending on the lender.

How does remortgaging work, step by step?

Remortgaging usually follows six steps: start around six months before your deal ends, review your current deal and plans, compare your lender’s offer with the rest of the market, apply and secure your new rate, complete the valuation and legal work if you’re switching, then your new deal starts.

1. We get in touchAround six months before your deal ends, we contact you to start your review.
2. Review your deal and plansYour balance, your property value, your income and anything you want to change, such as borrowing more or changing your term.
3. Compare your optionsWe compare your current lender’s offer with lenders across the market.
4. Apply and secure your rateWe submit the application, and your new rate can often be secured up to six months in advance.
5. Valuation and legal workIf you’re switching lender, the new lender values your home and the legal work is completed. A product transfer usually needs neither.
6. Your new deal startsYour new deal begins when your old one ends.

Remortgage questions, answered