Remortgage | A Simple Guide


What is a remortgage?

A remortgage is when you take out a new mortgage, usually with a different lender, to replace an existing mortgage on a property you already own.

Why would you remortgage?

You can remortgage your existing property for many different reasons. The most common reason is to obtain a better mortgage deal; for example, a lower interest rate.

This can save you money both in terms of monthly payments and the total amount you will repay over the term of the mortgage.

You can also use a remortgage to borrow extra money for just about any purpose, such as home improvements, paying off other debts and helping family. 

Who can remortgage?

If you own a property, you can look to remortgage. The process will involve the usual affordability, credit checks and property valuation you would expect on any mortgage application.

Providing these are ok, then there should be no problem obtaining a remortgage. 

How much does it cost to remortgage?

When you remortgage to a new lender, they will require a valuation of the property and there will be some legal work involved that requires a solicitor. The good news is, in most cases, the cost of these is covered by the new lender.

Occasionally, these costs won’t be covered and the cost of these should be taken into account in the calculations of the overall savings of remortgaging.

One other thing that needs to be considered is whether you have early repayment charges on your existing mortgage.

If you are currently part way through a special deal with your existing lender, such as a fixed rate, there may be penalties to repay the mortgage early.

These can prove to be very expensive and are often a reason to delay remortgaging the property. These penalties usually end when the special deal period ends and this is often when a remortgage takes place. As with all mortgage applications, Barlow-Irvin services are free when you remortgage through us.


My current deal is due to end, when should I remortgage?

We recommend that you start the process of remortgaging around 4 months before the end of your current mortgage deal.

This gives plenty of time to complete the process in time for your new deal to start as soon as your current one ends. 

In most cases, at the end of your current mortgage deal, your interest rate will increase to the lender’s standard variable rate which means that your payments will increase. 

Can I get a new deal with my existing lender?

Your existing lender will always contact you just before your deal is due to end to let you know how your interest rate and payments will change.

They may also offer you a new deal, known as a Product Transfer. This can be a very easy and straightforward way to get a new deal, as they usually won’t require any documentation or further checks if you’re not making any changes to the mortgage amount or term.

However, it is always worth looking at all the options available through other lenders as it may be beneficial for you to switch lenders. 

Here at Barlow-Irvin, we always consider all of your options, including your existing lender, so it’s worth speaking to one of our mortgage experts before committing to a new deal. 

How long does it take to remortgage?

As there are no other parties involved in a remortgage, it should be quicker to remortgage a property than to buy.

We would normally expect a remortgage to complete in around 6-8 weeks from the point the application is submitted, although this can be less for more straightforward cases. 

About the author 

Gary Oxborough

Gary is the Founder and Director of Barlow Irvin Financial Services Ltd. He has been in the Finance industry for over 20 years and has specialised in Mortgages since 2003. As well as running the firm, he is still actively involved in advising clients.

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