Use our frequently asked questions to find out what you need to know about remortgaging.
A remortgage is where you end your mortgage with your current provider and take out a new mortgage with a different lender.
It works by taking out a mortgage for your existing property with a new lender, and using the proceeds to pay off your original mortgage.
If you remortgage to Lloyds Bank, we’ll arrange and pay for a solicitor to do all this for you.
If you want to, when you take out your new mortgage you may be able to borrow more money at the same time, for example to pay for home improvements.
Remortgage to save money
For lots of people in the UK, their mortgage is their largest monthly outgoing. So even a small change in the interest rate being paid could result in significant savings. Checking out deals from lenders other than your current provider could help you save money on your mortgage.
If the value of your property has gone up since you took out or last made a change to your mortgage, then the loan-to-value of your property may have reduced. This could mean you’re eligible for a lower rate than you’re currently on.
Remortgage for flexibility
We live in changing times, so you may want a mortgage that gives you the flexibility you need to help you through life’s ups and downs.
If you remortgage to Lloyds Bank, you’d have the ability to make overpayments, or apply to take a break from paying your mortgage for a couple of months.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
We'll only lend you a certain percentage of the property valuation. You may not need to pay a deposit and you may be able to borrow more than you currently owe. This will depend on the property valuation and how much you owe on your current mortgage, as well as how much we think you can afford to borrow.
Yes, you can ask to borrow more for home improvements, as an example, or another important purchase. Or, if you're looking to save on your monthly payments or the total cost of borrowing, you could combine your existing debts, like credit cards and loans into one easy-to-manage monthly payment. If you’ve already borrowed against your mortgage to combine your existing debts within the last 5 years, we won’t be able to offer extra borrowing to pay off your debts again.
Before we give you an answer we’ll need to find out how much equity you have in your home and look at your other outgoings. You should consider your other options before you borrow any extra money against your home. It will increase your total mortgage debt and your home could be at risk if you fall behind on your payments. If you are looking to combine your existing debts, we can help you to decide whether adding them onto your mortgage is appropriate for you.
Depending on the mortgage product, there may be a product fee to pay. You'll need to check our current rates for full details. Any product fees can be added on to your mortgage on completion.
There could be other charges and standard costs which you may have to pay during the course of setting up your mortgage. You'll be charged interest on any fees, charges and standard costs added to your loan, unless we tell you otherwise.
You can see our mortgage rates and build the right deal for you online by telling us a little bit about you, your mortgage and what’s important to you. Once you’re done, you can start your full mortgage application online, in branch or over the phone. The same deals will be available no matter how you apply.
Applying by phone or in branch
If you apply over the phone by calling us on 0800 783 3534 or in branch by booking an appointment, you'll receive advice from one of our qualified mortgage advisers. They'll ask about your needs and circumstances and then recommend our most suitable mortgage for you. They'll discuss the next steps in the application process and answer any queries you may have.
If you apply online you’ll have to make your own choice about the most suitable mortgage for you. By applying online you’re making the decision not to receive any advice from one of our qualified mortgage advisers. At the start of your application we’ll ask some questions to confirm that you’re eligible to proceed online.
If you start your application online, you can change your mind at any time and receive advice from one of our mortgage advisers in branch or over the phone.
We’ll ask for the following details about you and anyone else who will be named on the mortgage:
We’ll also need:
An Agreement in Principle (AIP), also known as a 'Decision in Principle' or 'Mortgage Promise', is something you would usually need to complete when applying for a new mortgage, but when you apply for a remortgage with us you do not need to do an AIP. If you want personal reassurance with what we can lend to you, then you can apply for an AIP and it will have no effect on your credit rating.
A mortgage offer is issued by a lender once your mortgage application has been received and the necessary checks, such as the property valuation and confirmation of your details, have been carried out. It sets out the terms under which the lender is prepared to offer you a loan.
If you do decide to complete an AIP, all we need is a few personal details about you and anyone else who will be named on the mortgage. Then we’ll contact a credit reference agency for a credit search and give you a credit score. If you reach our pass mark, we’ll confirm that we could offer you a mortgage (subject to you completing a full mortgage application).
If you don’t want to do an AIP, you can see our mortgage rates and build the right deal for you online by telling us a little bit about you, your mortgage and what’s important to you. Once you’re done, you can get some advice from us by calling us on 0800 783 3534, booking an appointment in branch, or continuing your application online by yourself.
It can take about 4 to 8 weeks to complete a remortgage. However there are a number of steps involved and it all depends on how long each step takes, which can vary depending on your own personal circumstances.
Steps to remortgaging
You'll need to:
We'll consider lending you money for different types of property in the UK. Any loan we make will be subject to a satisfactory valuation by a surveyor of our choice.
While we will consider many types of property, we have a responsibility to ensure that a property is suitable security for a mortgage.
As a result, we'll not lend against properties where the valuation is below £40,000.
Remortgages come with our Remortgage Switching Service. We won't charge you for the valuation and we'll pay our own legal fees - you must pay for any legal advice or additional services required. If you apply online you'll need to confirm you're happy to use this service. If you apply over the phone or in branch, if you do not wish to use our Remortgage Switching Service and would prefer to instruct your own conveyancer to deal with your remortgage, you must arrange and pay for these services yourself.
It is a requirement of your mortgage to have buildings insurance. This covers the bricks and mortar, fixtures and fittings. It's also a good idea to take out contents insurance as well - this protects all your possessions in your home, from furniture to jewellery.
You may want to look into insurance to protect your mortgage for example Life Cover and Critical Illness Cover.
This will depend on the mortgage product, there may be a product fee to pay and early repayment charges if you repay early.
You will need to check our current rates for full details. Any product fees can usually be added on to your mortgage on completion.
There could be other charges and standard costs which you may have to pay during the course of setting up your mortgage.
You will be charged interest on any fees, charges and standard costs added to your loan.
When you take out your mortgage, you arrange to have a fixed or variable rate product for a period of time.
At the end of this time, the product will end and your loan will usually be transferred to one of our lender variable rates. At this point, you may choose to move it to a new product for a further period of time.
It is sometimes possible to take a product rate with you to a new mortgage - we sometimes call this 'porting'. Your Mortgage Illustration and offer letter will say if any of your product rates can be taken to a new mortgage.
We lend you the money on the basis that you are using the property as your main residence.
If your circumstances change after you take the mortgage, and you want to let the property you must ask our permission.
We do not guarantee that we will allow you to let your property and you may have to transfer onto another product if we do allow this.
Any amount we agree to lend is subject to a full mortgage application, where we’ll check details like your income and credit score.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE