Remortgaging - FAQs

Use our frequently asked questions to find out what you need to know about remortgaging.

What is a remortgage?

A remortgage is where you end your mortgage with your current provider and take out a new mortgage with a different lender.

How does remortgaging work?

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.

Why should I remortgage?

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.

You could lose your home if you don’t keep up your mortgage repayments

Things to know

1.

How much could I borrow?

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.
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2.

Can I ask to borrow more, if I need to?

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.
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3.

What costs are involved in remortgaging?

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.

We won’t charge you for the valuation and we’ll pay for your basic legal work (additional legal fees may apply).

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.
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4.

What are my options when applying for a mortgage?

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 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.

Applying online

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.
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5.
What will I need for the mortgage application?

We’ll ask for the following details about you and anyone else who will be named on the mortgage:
- Personal details including: name, address, date of birth and contact details
- Employment details
- Financial details including income, bonuses, overtime, commitments and monthly expenditure
- Retirement plans
We’ll also need:
- Details of the property to be mortgaged including the year the property was built and the construction type
- Your existing mortgage lender details and your current mortgage balance
- Documents to confirm what you've told us
We can also help you to find the right levels of cover for your your needs, such as home insurance and Life Cover.

If you’d like to discuss this with us, you’ll need to have to hand details of any existing home, life or critical illness insurance policies you already have.
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6.

What is an Agreement in Principle and do I need one?

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 by contacting us, or continuing your application online by yourself.
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7.
How long will it take to move my mortgage to you?

It can take about 6 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:
1. See our rates. Just tell us a bit about you and your mortgage.
2. Build your perfect mortgage. Let's build the right deal for you by seeing what's important to you.
3. You're all done. Get some advice from us or continue online by yourself.
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8.

What type of properties will you lend on?

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.
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9.

Is there a minimum property value?

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.
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10.

Do I need to arrange a solicitor / conveyancer for a remortgage?

Remortgages come with our Remortgage Switching Service. We won't charge you for the valuation and we'll pay for your own basic legal work (additional legal fees may apply). 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.
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11.
What basic legal fees will you cover?

Our free basic legal work includes:
- Checking information from the Land Registry relating to the property
- Contacting existing lenders to confirm outstanding balances
- Requesting funds upon completion
- Updating mortgage details at the Land Registry
You may need to pay additional legal fees in some cases, such as:
- Transfer of surplus funds upon completion
- Adding a new customer name or removing an existing customer name from the property register (Transfer of Equity)
- Extending a lease
- Shared Equity or Shared Ownership work
- Resolving name and address discrepancies
- Copy Documentation requirements
Our conveyancers will let you know if any additional legal fees apply.
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12.

What insurance will I need?

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.

It’s also important to think about what would happen to your mortgage in the event of your death, or if you are too ill to work. Our expert Mortgage and Protection Advisers can help you to find the right level of cover to protect your mortgage, should the worst happen.
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13.

What happens at the end of my mortgage deal?

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.
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14.

What if I want to move during my mortgage deal?

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.
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15.

Can I let my property?

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.
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Important legal information

Lloyds Bank plc. Registered office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales No. 2065. Lloyds Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278.

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