Is Remortgaging Right for You?

Should You Remortgage? A Complete Guide

Remortgaging can sometimes be a useful financial step, but whether it is right for you will depend on your personal circumstances. In this guide, we’ll outline the potential benefits, the possible risks, and what you need to consider before making a decision.

What is Remortgaging?

Remortgaging means switching from your current mortgage to a new deal, either with your existing lender or a new one, while staying in the same property.

Why Remortgage?

There are three common reasons people consider remortgaging:

1. To get a new deal: Sometimes, after an introductory offer ends, lenders move you onto their Standard Variable Rate (SVR), which can be more expensive. Remortgaging may allow you to secure a lower interest rate, but this depends on your circumstances, credit history, and the products available. Savings are not guaranteed.
2. To consolidate debts: Some borrowers use a mortgage to pay off other debts, such as loans or credit cards. While this can reduce monthly outgoings, it may increase the total amount you pay back overall and put your home at risk if you cannot keep up repayments. Debt consolidation should only be considered after receiving regulated advice.
3. To raise funds: Remortgaging may allow you to release equity for purposes such as home improvements or education costs. However, this increases your overall borrowing and may mean higher monthly payments or a longer repayment term.

Is Remortgaging Right for Me?

Remortgaging could be helpful, but it is not always the best option. The right decision depends on factors such as your income, credit history, loan-to-value ratio, and long-term plans. You should always seek mortgage advice before proceeding.

⚠ Important: Consolidating unsecured debt into a mortgage may reduce monthly repayments but could increase the overall cost of borrowing. It also secures previously unsecured debts against your home.

The Risks of Remortgaging

• Early repayment charges: If you leave your existing mortgage before the end of the deal period, you may have to pay an early repayment fee.
• Additional costs: Legal, valuation, arrangement, or broker fees may apply.
• Property valuation: If your home has fallen in value, you may not qualify for the best deals.
• Increased borrowing: Extending your mortgage term or borrowing more may result in higher total interest costs.

⚠ Your home may be repossessed if you do not keep up repayments on your mortgage.

How Does the Process Work?

The typical steps are:

1. Request a redemption statement from your current lender.
2. Speak with a mortgage adviser to compare options.
3. Obtain a decision in principle (DIP) from a lender.
4. Submit a full mortgage application with supporting documents.
5. The lender will arrange a valuation of your property. Some lenders offer free valuations, but not always.
6. Instruct a solicitor or conveyancer. Some lenders offer cashback or a legal package to cover legal costs.
7. Completion – your new mortgage pays off the old one.

This process usually takes 4–6 weeks, though timings can vary.

What Will It Cost?

Not limited to:

• Early repayment charges: May apply if you leave your deal early.
• Legal fees: You may need a solicitor, though some lenders cover this cost.
• Valuation fees: Some lenders offer free valuations, but not always.
• Arrangement or booking fees: Some mortgages come with upfront charges. In most cases this fee can be added to the mortgage amount.
• CHAPS fee: This is a charge for transferring funds on completion.
• Broker fees: Depending on the broker, you may pay fees, or the broker may be paid commission by the lender. We will always disclose how we are paid and whether our advice is whole-of-market or based on a selected panel of lenders.

Tools and Comparisons

You can compare mortgage products and use our mortgage calculator on our website. These comparisons are for illustrative purposes only and based on assumptions. They should not be relied upon as a guarantee of eligibility or savings. Actual rates, terms, and eligibility will depend on your circumstances.

Key Warnings

• Your home may be repossessed if you do not keep up repayments on your mortgage.
• Consolidating debts into a mortgage may increase the overall cost of borrowing and could put your home at risk.
• Savings from remortgaging are not guaranteed.

Get Advice

If you are considering remortgaging, it is strongly recommended that you speak to a regulated mortgage adviser. Advice will help you assess whether remortgaging is suitable for you, based on your needs and circumstances.

For more information or advice tailored to your situation, you can contact us on 0203 0111 898.

Disclosure

We provide mortgage advice from whole of market. We may receive commission from lenders, but this does not affect the advice we give. We will always make clear any fees payable by you before proceeding.

Important Information

Your home may be repossessed if you do not keep up repayments on your mortgage.

This guide is for general information only and does not constitute financial advice. Always seek regulated advice tailored to your circumstances. Product availability and criteria may change. Accurate as of August 2025.