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
More borrowers using equity release
Yesterday
Almost one in five equity release mortgages are now taken out to provide financial support to family.
Buyers purchasing properties sooner
3 days ago
According to industry data, the expected wait for those looking to buy a property has dropped from just over 11 months to less than six months.
It is common for your first mortgage payment to be higher than your subsequent monthly payments for two reasons.
What to do just before you get your keys
8 days ago
Firstly, a big congratulations, you’ve now exchanged contracts! After weeks and months of waiting, you are about to move in. What should you do first?
The chancellor will deliver her second budget this autumn. Due to slow economic growth and high inflation, the government need to manage a £40 billion shortfall in public finances. There have already been reports about changes to taxes including income tax and capital gains tax.
Landlords could face a new tax this autumn
29 Aug 2025
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.
More information
Trusted by
