A remortgage is the term used when you raise a secured loan (a mortgage) on a property that either is currently free of mortgage or has an existing mortgage and you switch to another lender.
There are a variety of reasons why you might be considering a remortgage. Perhaps your existing mortgage terms are no longer competitive? Maybe you want to pay of a part of your mortgage with a bonus but your existing mortgagee won’t let you? You might have no mortgage at all but you want to borrow cash from your asset by raising a mortgage, perhaps to pay for a new roof or to pay for a big and unexpected bill!
There are some basic things to bear in mind:
- Will paying off your existing mortgage mean you incur penalty fees?
- What costs will be involved in raising a new mortgage?
- How much can you borrow and for how long?
You should also be considering whether borrowing more on a mortgage is your best route. Sometimes, a short term loan at a higher rate might still be cheaper than buying because of the longer repayment period.
In the first instance, there are some basic things you can do to put yourself in a strong position when applying for a loan. Check your credit status and make sure you’re on the electoral role. Make any budget savings you can before you apply. Illustrating that you are living well within your means will help you when negotiating a new mortgage offer.
Your mortgage options will be governed by the value of your property, the size of your mortgage and your ability to repay it through income.
In most cases the larger your mortgage the more money you might be able to save by shopping around. Of course, the key to a great deal is knowing what’s available! That’s where we come in.
For more information about remortgaging contact and advisor today on 01628 507477.
Related article:
Download our Free First Time Buyers Guide
Recent posts
The chancellor has advised that landlords could have another tax to pay this autumn as the Treasury decide whether to extend national insurance contributions to rental income.
According to a report in the Guardian, senior ministers have asked Treasury officials to look into a “proportional” property tax to see how it would work as an alternative to the existing stamp duty land tax on owner-occupied homes.
More than a quarter of UK adults in long-term relationships (26%) have reported that despite living together, they keep their finances separate from one another.
There has been a rise in both rent and mortgage costs over the last three years, with renters seeing a greater increase in their monthly payments than those with a mortgaged property.
Delayed Start Mortgages
24 days ago
The new Delayed Start Mortgage launched by Skipton Building Society allows first time buyers to postpone the first three mortgage payments. This product has been designed to help soften the blow of moving in costs for first time buyers.
Green Mortgages | Rewards and Benefits
26 days ago
Mortgage lenders are starting to recognise their “Green” responsibilities when it comes to the different products they offer.
A recent study by Boon Brokers where 1,000 people who had used an estate agent over the last year were surveyed, showed that a whopping 52% said they were pressured into using the estate agents’ in-house mortgage broker.
When will mortgage rates fall further?
25 Jul 2025
Analysts are predicting further rate cuts this year, with the next one possibly coming down to 4% when the Bank of England’s Monetary Policy Committee meet on Thursday 7th August 2025.
More information
Trusted by
