Remortgaging: compare the existing lender, new deals, fees, and ERCs

Your home may be repossessed if you do not keep up repayments on your mortgage. Think carefully before securing other debts against your home. This page is information, not regulated advice.

What does remortgaging mean?

Remortgaging means replacing the mortgage on your current home with a mortgage from another lender. Switching to another product with the same lender is usually called a product transfer. Borrowing more from the existing lender is a further advance. These routes have different underwriting, legal work, fees, and product choices.

Common reasons include an existing deal ending, reducing total cost, changing product type, adjusting the term, releasing equity, removing or adding a borrower, or consolidating debt. The objective should be clear before products are compared.

When should you start?

Review the mortgage several months before the current deal ends. The practical date for an application depends on the current ERC end date, product availability, new offer validity, valuation and legal timescales, and whether the lender permits a rate change before completion.

Obtain the current balance, rate, remaining term, deal end date, ERC schedule, and product-transfer options. Do not complete a new mortgage early merely because an application can be submitted early. The completion date determines whether an ERC is charged.

Product transfer or new lender?

Compare both routes on the same balance, term, product period, and fee treatment. A convenient product transfer can be the right outcome; it should not be assumed to be cheaper or more expensive before the numbers are checked.

How to compare total cost

Compare interest and fees over the period you expect to keep the product. A low rate with a large fee can cost more than a slightly higher fee-free rate, particularly on a smaller balance or short product period. Extending the mortgage term may reduce the monthly payment while increasing total interest.

The remortgage calculator holds the remaining term constant and compares interest plus entered fees. Use the ERC calculator only as an estimate until the lender supplies an exact figure.

Loan-to-value and valuation

LTV is the mortgage balance divided by the property value. A lower LTV can widen product choice, but a new lender uses its own valuation rather than the homeowner's estimate. If the valuation is lower than expected, the available LTV band and product may change.

Model the position with the LTV calculator. Do not pay for improvements solely on the assumption that they will increase the lender's valuation by the same amount.

Capital raising

A remortgage can increase borrowing for home improvements, a family gift, another property, education, business purposes, or debt consolidation, subject to lender policy and affordability. The lender may request evidence for the purpose and can restrict or decline particular uses.

Increasing the mortgage raises the balance secured against the home and can change LTV, rate, term, and total interest. Read the capital-raising guide and compare a further advance, remortgage, and any appropriate unsecured alternative.

Debt consolidation

Moving credit cards or loans into the mortgage can reduce the interest rate or monthly payment but also extends the repayment period and puts the home at risk. Compare the total amount repayable, not only the new monthly figure. Avoid rebuilding unsecured balances after consolidation and obtain regulated advice.

Remortgage process

1. Define the objective and collect the current mortgage details.
2. Check product-transfer offers and screen new-lender eligibility.
3. Compare total cost, product period, fees, ERCs, and flexibility.
4. Submit a full application if moving lender and provide income, spending, identity, and property information.
5. The new lender values the property and completes underwriting.
6. Legal work redeems the old mortgage and registers the new lender's charge.
7. Complete on the planned date after checking the final redemption statement and funds.

Documents commonly requested

• proof of identity and address;
• recent bank statements and evidence of income;
• accounts and tax documents for self-employed applicants;
• current mortgage statement and deal details;
• property, lease, service-charge, and insurance information where relevant;
• evidence for additional borrowing or changes in ownership.

For current monetary context, see the sourced UK mortgage rates and Bank Rate page.