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What is remortgaging?

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Who is this page for?

If you’re a homeowner and are looking to switch to a different mortgage, this page is for you. 

What is remortgaging?

Remortgaging is when you switch from your current mortgage deal to another, with a different provider. It means you can choose a different deal than the one you signed up to when you first bought your home.

The amount you repay is transferred to another mortgage policy, which might have a different interest rate, different monthly repayments and new terms.

Some people choose to remortgage to:

Find out whether it’s for you with our guide. 

How does remortgaging work?

The remortgaging process is made up of lots of steps – though all are easy to follow, so don’t worry.

If you’re unsure of what to do at any point, give your mortgage adviser a call or send them an email.

Work out how much you can afford

Check your finances and work out your monthly incomings and outgoings. You can then decide how much you can afford to spend on regular mortgage repayments once you have taken into account your other living costs.

Use our mortgage finder

Use our mortgage finder to see your how much you might be able to borrow and what the monthly repayments could be.

Find the right mortgage for you

Find a mortgage deal that works within your budget and circumstances. Remember to plan the monthly repayments around your bills and financial commitments.

Choose the right time to remortgage

Leaving your current mortgage deal early might mean you pay a fee, called an early repayment charge. Find out from your mortgage provider if you’ll have to pay this before remortgaging.

Plan ahead

You can plan to remortgage before your existing deal is up and arrange for your new deal to start once your existing deal ends. This is usually up to six months before the end of your deal.

How long does a remortgage take?

Remortgaging your home usually takes between four to eight weeks. During this time, lenders may run their own credit checks to see whether you’re suitable for the new mortgage deal.

You can help speed the process up by being ready to provide the details they need from you, such as:

  • Last three months of bank statements and payslips
  • Proof of identity – passport or driving licence
  • Proof of address – utility or credit card bills

What remortgaging deals are available to you?

Before looking for a new mortgage deal, you’ll need to work out how much you have to pay on your existing mortgage.

The amount you have outstanding on your mortgage and the value of your property allows you to work out your loan to value (LTV) ratio. This will impact the deals you’ll be able to apply for.

Usually, the lower your LTV ratio, the better deals will be available to you. Find out more about loan to value ratio.

Working out LTV

To get your LTV ratio:

 

  1. Take your remaining mortgage balance
  2. Divide this by your home’s value (you may need a house valuation to do this)
  3. Multiply by 100

 

For example, if you have £150,000 left to pay and your property is valued at £300,000, your LTV ratio would be as follows:

Graphic image showing how to work out LTV ratio - illustrative to the explanation in main body text.

Do you need a solicitor to remortgage?

If you’re switching between providers, you’ll probably need to use a solicitor or conveyancer.

Mortgage providers often offer a solicitor or conveyancing as part of the new deal or for a fee. Alternatively, you can source your own. 

Are there any fees associated with remortgaging?

If you’re remortgaging your home by switching provider before the term of your mortgage ends, you might pay some fees.

Early repayment charge

To end a fixed-rate mortgage and transfer to a variable policy, you might pay an early repayment charge. Your lender calculates this by taking a percentage of either the:

  • Original loan you borrowed
  • Balance you still need to pay
  • Amount you’ve already repaid

This charge covers the cost of paperwork to transfer your mortgage to another provider.

Valuation fees

A valuation fee is the cost of having your property valued to find out how much it’s worth. Some lenders – like Lloyds Bank – won’t charge valuation fees when you remortgage.

Legal fees

You’ll have to pay for solicitors to help you switch your mortgage to another provider. Mortgage providers often offer solicitor or conveyancing services for a fee. If you prefer, you can find your own. 

The content on this page is for reference and does not constitute finance advice.

For impartial financial advice, we recommend government bodies like the Money Advice Service.

Calculators & tools

We have a range of mortgage calculators to help you:

  • Find out how much you could borrow from Lloyds Bank
  • See how much you could save if you make overpayments on your mortgage
  • Get an idea how a change to the Bank of England Base Rate could effect your monthly payments

Use our calculators and tools >

Need to speak with someone?

You can talk to us over the phone or use our mortgage video service from the comfort of your own home.

Contact us

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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