Remortgaging means replacing your current mortgage with a new deal, either with your existing lender or by moving to a different one. Most homeowners review their mortgage when their fixed or tracker rate is due to end. If no action is taken, the loan usually transfers onto a lender’s standard variable rate, which can be significantly higher and increase monthly payments.
The process involves a fresh affordability assessment. Lenders will review your income, outgoings, credit history and current property value. In some cases, a physical or desktop valuation is required. If approved, the new lender repays your existing mortgage and your new agreement begins under updated terms.
Some homeowners also choose to raise additional funds at the same time for improvements or debt consolidation. The key is comparing the total cost over the deal period, not just the interest rate.
Your home/property may be repossessed if you do not keep up repayments on your mortgage.
You may have to pay an early repayment charge to your existing lender if you remortgage.
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