Remortgage rates for UK homeowners

A remortgage is the process of paying off your existing mortgage and entering into a contract with a new lender. This is typically done to improve your mortgage rate and reduce costs.

You should start thinking about a remortgage around six months before expiry of your current mortgage deal

It is possible to remortgage before your fixed rate ends but you are likely to incur an Early Repayment Charge (ERC), so it's important to check the costs involved.

Raising a mortgage offer from a new lender typically takes 2 to 3 weeks but the legal process can add another 3 to 4 weeks to the overall time taken.

It is possible to remortgage with very little upfront cost. Possible costs include arrangement fees, valuation fees, legal fees and broker fees. Sometimes mortgage valuations and legal work costs can be covered by the new lender.

Yes, since there is legal work involved in changing your mortgage, the services of a solicitor are required. Sometimes your new lender will engage a solicitor and cover their costs.

Yes, it is possible to remortgage if you have poor credit history. Late payments, defaults or County Court Judgments, can be overlooked by lenders, depending on the circumstances.

Yes, if you want to raise extra funds when you remortgage that is possible for most legal purposes, subject to affordability.

Yes, a valuation will be required on your property that does not mean a valuer visiting the premises. Lenders will typically do a ‘desktop valuation’, this is an automatic calculation done based on thousands of other properties in your area.

You will need proof of identity, proof of address, proof of income, bank statements as a minimum.

Many product transfers can be completed within a few days because the lender already holds much of your information and may not require legal work or additional underwriting.

Providing you can prove your self-employed income this is not a problem. For sole traders and partners the lender will need to see at least two, sometimes three years, tax calculations and tax year overviews. Limited company directors will need to provide the same and possibly company accounts or a reference from your accountant.

If your mortgage rate ends and you don’t have new arrangements in place in time you will drop onto your lender’s standard variable rate. This can be expensive as standard variable rates are much higher than fixed or tracker rates that you may be offered.

Yes. Lenders assess your credit history alongside your income, affordability, existing financial commitments and property details before deciding whether to offer a mortgage.

Yes you can, although it is not always wise to consolidate debt in to your mortgage, this can be done in a number of ways.

The total you can borrow depends primarily on your income, your current debt, and the term of your intended mortgage. Other factors such as credit score, dependents, and other mortgages may also affect your maximum borrowing.

The term remortgage normally refers to switching lenders so yes you will switch to a different lender when you remortgage.

Your current lender will offer you a new deal going forward this is known as a rate which a product transfer. Whether that offer is comparable with deals available on the wider market is something a mortgage broker can help you decide.

If your property has risen in value that will affect your loan to value (LTV) ratio. The lower your loan to value a wider range of less expensive options that will be available to you. Therefore rising house prices are good news for borrowers remortgaging.

A mortgage broker point you in the right direction and answer any questions you may have to secure the remortgage best deal possible.

If you go direct to your lender they will not tell you that another lender has a much more attractive rate. Nor will they tend to inform you should their rates drop during the application process.