Compare Remortgage Deals

What does remortgaging mean?

Remortgaging involves moving your current mortgage to a new provider or switching mortgage deals with your current lender. The idea behind a remortgage is usually to try to find a lower interest rate and a generally better all-round remortgage deal.

Note that if you’re switching mortgage deals with your existing lender, this is called a product transfer, but is effectively a remortgage in all but name. Separately, if you’re moving home and want your existing mortgage to go with you, this is called porting a mortgage.

What has been happening with remortgage rates?

Remortgage rates generally rose sharply after September’s mini budget and, despite falling back slightly in recent weeks, remain notably higher than they were before the announcement. Although some lenders also quickly withdrew their remortgage deals in the days after the mini budget, many remortgage products have since returned.

Despite recent events, plenty of remortgage deals remain available, with our remortgage comparison tool ready and waiting to help you find the best remortgage rates and deals suited to you.

How to remortgage

The process of remortgaging will depend on whether you are remortgaging with a new lender or switching to a new deal with your current lender.

Arranging a remortgage with another lender is similar to applying for your original mortgage. The lender will run affordability checks and your property will be valued. How much equity you have in your property will affect the deals you can access and the interest rate you will be offered.

If you’re staying with your current lender and only changing the mortgage deal you are on, it’s likely to be more straightforward, happen more swiftly, and involve less paperwork. It might also cost less – if anything at all – in product and arrangement fees. But even if you’ve been offered a great follow-on deal by your current lender, checking remortgage deals across other providers may open up lower rates, and be worth the extra effort.

If you are looking to borrow more when you remortgage, lenders will run affordability checks to make sure you can afford the repayments. When you use our remortgage comparison tool, you can add this extra amount to how much you want to borrow, if this is something you’re considering. This will then be factored into the deal you are matched with. You can then apply directly with the lender or through a mortgage broker.

» MORE: How remortgaging works

Why do people remortgage?

There are various reasons why you might want to remortgage including:

• Your current deal is due to end, and you want to avoid being moved to your lender’s standard variable rate, which is usually higher.
• There are better mortgage rates available than the rate you are currently paying. This is where reviewing your mortgage regularly may reap rewards.
• You’re concerned about possible future interest rate rises and want to secure a fixed deal now.
• The value of your property has increased, which could mean you’re able to remortgage at a lower loan-to-value (LTV) ratio, where lower interest rates are typically found.
• You want to release equity from your home as part of the remortgage, perhaps to help repay debts or fund home improvements.
• You’d prefer a mortgage that allows you to make overpayments penalty-free, so you can pay off your mortgage sooner.
• You have money that you’d like to use with an offset mortgage where your savings can help reduce the amount of interest you pay.

How to get the best remortgage deal

To make sure you get the best remortgage deal, you’ll need to pay attention to:

Interest rates

Searching across as many mortgage lenders as you can will give you the best picture of the remortgage rates and deals available to you. Use our remortgage comparison tool to quickly compare the interest rates of remortgage deals matched to you.

Fees and charges

Knowing how much you’ll need to pay in fees for your new remortgage deal will help you work out if remortgaging is actually worth your while. The savings you make from a low interest rate might not leave you financially better off overall if the remortgage deal comes with high fees. Remember to take into account any early repayment charges on your current mortgage too.

Your credit rating

Your credit history is important because having poor credit might mean you’re rejected for the lowest rate remortgage deals. Taking steps to try to improve your credit score before remortgaging or applying for any loan is usually worthwhile.

Your loan to value

Loan to value is the amount you want to borrow relative to the value of your property. Generally, the more of your property you own (your equity), the lower your LTV will be. And in turn, the lower the LTV, the lower mortgage rates tend to be.

» COMPARE: Remortgage deals

How much does it cost to remortgage?

There are various remortgage fees and costs that you might need to pay when taking out a new remortgage deal. These need to be taken into account when trying to work out if remortgaging is worthwhile for you.

On your new mortgage, you might have to pay arrangement fees, booking fees, and valuation fees. There could be legal fees and broker fees too.

You will also need to factor in any early repayment charges that you’ll need to pay your current provider if you are leaving your mortgage deal before it’s due to end. If you are staying with your current lender and just moving to a different rate, you may pay less in fees than if you change providers, or even no fees at all. And your lender may waive its early repayment charge towards the end of the initial rate deal.

Some deals with your current lender may have an arrangement fee for setting up the new product, though, so check the features of the offer carefully.

How to compare remortgage deals with NerdWallet

The mortgage market is moving quickly right now – interest rates have been rising and many lenders have been withdrawing mortgage deals. However, there are still plenty of good remortgage deals available, which our remortgage comparison tool can help you find. You’ll then be able to compare remortgage rates, fees, and terms, and get an idea how much your monthly repayments might be too.

Answer a few short questions about your circumstances and the remortgage deal you have in mind, and the tool – which offers a whole-of-market comparison – will quickly highlight the deals that are best-suited to meet your needs.

What information do I need?

To allow us to find remortgage deals tailored to your circumstances through our comparison tool, you’ll need to know, or have a good idea of:

• when the initial term on your existing mortgage deal ends
• how much your property is roughly worth
• the type of mortgage you currently have
• how much of your mortgage you have left to pay off
• how long is left on your mortgage term

We won’t ask you what rate of interest you are currently paying or how much your monthly payments are, but if you know them anyway, you can compare them with the remortgage deals that we find for you.

» COMPARE: Remortgage deals

What types of mortgages are available?

The types of mortgage that you can get when you remortgage include:

• Capital repayment mortgages, which allow you to pay back some of the capital you borrowed along with interest charges each month. If you make all your monthly repayments, you should have cleared your entire mortgage and interest by the end of the mortgage term.
• Interest-only mortgages, where your monthly repayments will cover only your interest, and not contribute towards paying back your mortgage amount. Whatever you borrowed originally will need to be paid back in its entirety at the end of the mortgage instead.

Once you’ve decided between a repayment or an interest-only mortgage, you must then choose between a fixed or variable mortgage:

• Fixed-rate mortgages allow you to fix your interest rate for a set period of time, ensuring your monthly payments won’t change during that period. When the fixed term does end, you’re usually switched to your lender’s SVR, unless you remortgage to a new deal.
• Tracker mortgages are a type of variable rate mortgage where the interest rate you pay follows at a certain percentage above the base rate. This means your monthly repayments have the potential to rise or fall.
• Discount mortgages, which track a lender’s standard variable rate at a discounted rate for a certain period of time.
• Offset mortgages, through which your savings are offset against your mortgage amount, therefore reducing the interest you need to pay.

Can I remortgage with bad credit?

There may be remortgage deals available if you have bad credit, although you might not be able to get the lowest interest rates and will probably have fewer lenders to choose from. You might also need to have a larger deposit than if you had a good credit history. In some cases, it may not be possible to remortgage at all.

If you’re just looking for a follow-on deal when your current mortgage deal ends, and not asking to borrow more, you could consider a product transfer with your current lender. As long as you’ve kept up your mortgage repayments and aren’t in arrears, this may not involve a credit check.

» COMPARE: Bad credit mortgages

How much can I borrow with a remortgage?

Generally, you’ll only be allowed to borrow as much as a lender thinks you’re able to comfortably pay back. How this is calculated can differ between lenders but generally the maximum you’re allowed to borrow when you remortgage will depend on factors such as your income, expenditure, employment status and existing debt. Your credit history and the amount of equity you have in your property can be important too but are less likely to affect the amount you can borrow.

» CALCULATE: How much can I borrow for a mortgage?

Is there an age limit on remortgaging?

Age limits on remortgage deals will vary between lenders, so check this with any lender you might want to use. While some lenders might have an age that you can’t be older than when your mortgage ends, others may have a maximum age for taking out a remortgage.

Can I remortgage if I’m self-employed?

It is possible to remortgage if you’re self-employed, but you might face a few extra questions and need to provide more evidence that you can afford the mortgage than if you were employed.

To what extent this is the case will vary between lenders, but typically you might need to show:

• HMRC tax year overviews from the previous two or three tax years
• bank statements from the last three months
• other proof of earnings over at least two years, such as printouts of self-assessment tax returns, SA302s, and certified accounts from a qualified accountant
• proof of your previous, current and upcoming work
• a good credit score

» MORE: Self-employed mortgages

Could applying for a remortgage affect my credit score?

If you’re remortgaging with a new lender, at some point during the application process they’ll need to carry out a hard credit check that has the potential to affect your credit score.

This credit check might not be necessary if you’re taking out a remortgage deal, often referred to as a product transfer, with your current lender, and your mortgage amount and repayment term are staying the same. However, a hard credit check is likely to be required, and so your credit score could be affected, if you stay with your same lender but want to increase your mortgage.

How long does a remortgage take?

The process of remortgaging with a new lender typically takes between four to eight weeks. However, much will depend on your circumstances, remortgaging needs, and your ability to provide the paperwork a lender will want to see.

If you’re remortgaging with your current lender on similar terms, a product transfer is usually much faster –it’s possible it could be in place within 24 hours, while most will be completed in no more than seven days.

When should I remortgage?

You’re allowed to remortgage at any time but you should be mindful of any early repayment charges on your current mortgage, particularly if the deal still has a little way to run.

If you have a mortgage where you’ve benefited from a lower rate for a set amount of time, it’s usually a good idea to start looking at remortgage deals around six months before your existing deal is due to come to an end. That way, you can have a new mortgage lined up ready to go and hopefully avoid having to pay the higher rate you’re likely to be switched over to by your current lender.

The reason for suggesting six months is that if you get a mortgage offer on a new deal, lenders tend to keep this open for between three and six months.

Can I remortgage early?

You can usually remortgage when you like, but that doesn’t mean it’s always the right time. In particular, you will want to make sure you don’t end up paying more in early repayment charges than you save through securing a lower interest rate.

With many fixed-rate deals, there will be an early repayment charge for remortgaging before a deal’s tie-in period ends – these have the potential to cost you thousands of pounds in charges. Variable mortgages tend not to have an early repayment charge.

How much you pay to leave a deal early will depend on your mortgage arrangement. It may be a fixed fee or a tiered amount with a higher percentage in the first year of the deal, reducing as time goes on. So switching in year two of a five-year deal would cost more than switching in year five.

Can I remortgage with a different lender?

Yes, you can remortgage with a different lender to the one holding your current mortgage. It’s always best to compare remortgage deals across as many lenders as possible to give you the best chance of securing the right deal for you.

What documents do I need to remortgage?

When remortgaging a lender will want to see documents detailing your existing mortgage, along with proof of your earnings and paperwork relating to any other loans you might have.

Typically they might ask to see:

• bank statements from the last three months
• payslips from the previous three months
• your most recent P60 tax form
• your driving licence or passport
• recent utility or council tax bills as proof of address

If you’re self-employed, you might need to provide two or three years of accounts, SA302 forms, and tax year overviews. You might also be asked to provide three months of bank statements and proof of the work you’ve done in the past and have lined up for the future.

Does your house get valued when you remortgage?

If your remortgage deal is with a new lender, a house valuation will be required to check how much your property is worth. But if you’re remortgaging with your current lender, a house valuation probably won’t be requested, in many cases they will perform a desktop valuation just to have an updated valuation on record.

Do I need a solicitor to remortgage?

Not always. You won’t usually need to use a solicitor or conveyancer for a product transfer, as there isn’t legal work involved if you’re just moving to a different rate with the same lender. If you are borrowing more with your current lender, there shouldn’t be legal charges either, though other charges will likely apply for increasing your borrowing amount.

For some changes, such as adding or removing a name on the mortgage, or moving to a new lender, you will need a solicitor to manage the transfer of your home. Your provider may cover legal fees for you, though. You can check if this is the case when you compare deals.

How do I remortgage to release equity?

If you’re looking to remortgage to release equity. in your home, you will be increasing the size of your loan.

You ask the lender to add the amount you want to release to your current mortgage loan when you apply for a remortgage. You will need to explain what you plan to use the money for.

Before you go ahead, consider if you could raise the cash in other ways, which may cost you less in interest.

How do I improve my chances of getting a remortgage deal?

There are several ways to improve your chances of getting a remortgage deal, such as improving your credit score and paying down your other debts, if you can afford it and your loan repayments are making a new remortgage deal unaffordable.

Cutting back on your spending and finding ways to increase your income can help overcome affordability issues too. And if you can afford to overpay on your mortgage, this could help increase the equity you own in your property, potentially opening up the path to more remortgage deals at the same time.

Importantly, remember that mortgage eligibility criteria differ between lenders – so while one might turn your remortgage application down, another might still offer you a remortgage deal. That’s why shopping around and making remortgage comparisons is a must.

» COMPARE: Remortgage deals

What are my options if I can’t remortgage?

If you haven’t been able to remortgage with a new lender, perhaps because you aren’t able to pass affordability checks, you will go on to your lender's SVR.

If you are worried that you won’t be able to afford the payments when that happens, talk to your lender as soon as possible. Your lender may be able to offer you another deal with a different rate that is more affordable.

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