What is a remortgage, and when should you review your mortgage deal?

A remortgage means replacing your current mortgage with a new one. You can do this with your existing lender or with a different lender, and your home stays the same. People remortgage for a few common reasons, and it is worth knowing them before your current deal ends.

Why people remortgage

• Their fixed or discounted deal is ending, and they would otherwise move onto a higher standard rate
• They want to borrow more, for example to pay for home improvements
• They want to change the mortgage term, or switch to a different type of mortgage
• Their circumstances, or the value of their home, have changed

Staying with your lender or switching

Your current lender may offer you a new deal when your existing one ends. This is often called a product transfer, and it usually involves less paperwork. A different lender may offer something that suits you better, but a switch generally means a new application and more checks. It is sensible to look at both before you decide.

Costs to check first

• An early repayment charge, if you leave your current deal before it ends
• Arrangement or product fees on the new mortgage
• Valuation and legal costs, which some lenders include and others do not
• Any exit or administration fee from your current lender

When to start looking

Many lenders let you secure a new deal in advance, so it is sensible to start a few months before your current deal ends. Leaving it until after the deal ends can mean moving onto a higher standard rate for a time.

Talk it through

Every situation is different, and the smallest monthly payment is not always the best choice once fees and the length of the deal are included. If you would like to talk through your options, get in touch or read more about remortgage advice.