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Remortgaging made simple

Remortgaging made simple

Remortgaging is made simple with our independent advice guide. We cover why, when and how to remortgage.

Why should I remortgage?

The main reason for remortgaging is to reduce your monthly repayments. Given your mortgage is by far the biggest outgoing, remortgaging should be top of your list of money saving measures.

Another reason for remortgaging is if you want to release some equity in your home to pay for another major expense such as a home improvement project.

You may also want to remortgage to take advantage of a better rate or to switch to a more flexible mortgage that fits your circumstances better. But switching before your current mortgage deal has expired can come with penalties so watch out for these.

  • Timetable in a reminder 3 months before your current mortgage deal is due to expire. This will give you enough time to shop around and get your remortgage application completed in time for you to simply switch onto a better deal. Otherwise, you risk being moved onto a potentially expensive standard variable rate

When should I remortgage?

You’ll want to work out whether it makes financial sense to change your mortgage deal now, even if you do have an early repayment charge on your current rate. Compare your current mortgage against some of the best deals on the market to find out if you can still save money. It may help to get advice on the best deals. Our mortgage service, provided by L&C can help and are just a phone call away if you want to talk through your options.

Checking out today’s best deals will give you an idea of current rates at a glance 

Can I extend my existing mortgage?

While in most cases remortgaging is a great opportunity to shop around for the best provider, if you are locked into a certain deal there are still options. You could speak to your lender about remortgaging your current lending over a longer term, thus making your monthly repayments cheaper – although the mortgage will be more expensive over its lifetime.

If you are looking to access the equity in your house, but don’t want to move from your current lender because you have a great rate, again you may be able to extend the mortgage with your existing lender to arrange a larger loan as part of a remortgage.

What are the barriers to remortgaging?

  • If you are in negative equity, it is very unlikely you will find a remortgage deal
  • If you have any issues with your credit rating, this can also affect your chances of a new mortgage. Find out how to improve your credit rating here
  • If you are self-employed you may struggle to remortgage if you can’t provide adequate evidence of your income and lenders will no longer allow you to self-certify. See our guide on self employed mortgages for more information
  • Many of the bigger banks will lend into retirement but they will often have an upper age cap, with the majority asking for loans to be repaid before your 70th or 75th birthday. This means that if you’re aged 55 and over, you would have to pay the mortgage back in 20 years rather than the standard 25 years. For more information, see mortgages for over 55s.
  • Lenders also often demand higher salaries relative to loans than in previous years and take into account your outgoings as well as your income when deciding to offer you a mortgage.

Can my existing mortgage lender offer the best deal?

  • Approach your provider to see if they could offer you a better deal.
  • By sticking with the same provider, you may avoid some extra fees and save time – but it may not be the best deal. Shopping around for the best rate and doing the maths to take account of any fees and penalties may take time but will likely pay off in the end. Using a mortgage broker can cut through this and provide the expert advice and leg work that’s required.

How do I remortgage?

Our mortgage service provided by L&C mortgage brokers can help you get started, answer any questions you have, explain how remortgaging works and talk you through your options. They can take you through every step of the remortgaging process from finding the best deal to completion.  There is no charge for this service. It’s fee free. So why not get in touch.

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