In its simplest form a remortgage means shopping around for a new mortgage deal product offering a lower interest rate or terms that are more competitive than your existing lender has available.

Even a small change in interest rate or a lower fee structure could mean saving hundreds of pounds.

Whilst you can do it at any point during your mortgage term, certain times would be preferential. Everybody should consider remortgaging when their current mortgage product expires, for example, when a fixed rate deal finishes and we recommend you start looking into the best options 6 months before your existing deal expires.

The majority of mortgage products have ERCs (Early Repayment Charges) for the duration of the initial introductory rate so the amount and timing of these must be taken into consideration when looking to remortgage.

Some other reasons to remortgage include:

  • Raising money to fund home improvements
  • Debt Consolidation
  • Helping children with a deposit
  • Buying a new car
  • Transfer of equity – buying out someone else’s share of the property
  • Funding a wedding

Remortgaging on a regular basis can save you hundreds of pounds and will ensure you pay your mortgage off in the quickest time.

Product Transfer or Remortgage

Our advisers will consider and fully explain the merits of staying with your existing lender and doing a product transfer versus the typical remortgage process of going to a new lender to secure a new product.

It is usually easier to take a new product with your existing lender but this ease must be compared with the potential cost savings of moving to a new provider.

Both routes also have potential drawbacks, for example, your current lender may use a valuation figure for your property which is not a true reflection of its current value, giving you access to less favourable deals. Likewise, solicitors will be involved in a full remortgage process and this can easily cause delays.

Fees and charges to consider

Whilst securing the lowest rate is important, consideration must always be given to the fees and costs involved with any mortgage product. Our remortgage recommendations will take into account all fees and associated costs, such as:

  • Arrangement fee
  • Booking fee
  • Valuation fee
  • Existing lender account closure fee
  • Telegraphic transfer fees
  • Legal costs

Do I need a solicitor to remortgage?

A traditional remortgage involves a transfer from one lender to another and this will need to be completed by a solicitor or conveyancer, whereas a product transfer will generally not as you are staying with the same lender.

To entice you to change lenders some providers will offer either a ‘cashback’ sum towards the legal costs or instead, a fee assisted legal package, commonly referred to as ‘free legals’. Please note that free legals are not completely free, potential costs are often incurred, e.g. for ID checks, transfer fees, changes to ownership or title.

Have you considered a Further Advance or Second Charge Mortgage?

If you are looking to capital raise against your home then remortgaging may not be the best option for you. This could be because of Early Repayment Charges, or if your personal circumstances have changed, for example, recently self-employed or now have adverse credit.

As whole of market brokers we will consider and explain the best options for your circumstances.

Nicholson Brown Limited is authorised and regulated by the Financial Conduct Authority under register number 671013.

Your home (or property) may be at risk of repossession if you do not keep up repayments on your mortgage or loan secured upon it.

We do not charge for our initial consultation, however we charge a brokerage fee for residential and buy to let mortgage applications. The fee is dependent upon the complexity of your case and is typically up to £500, payable upon completion of the transaction.

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