What is remortgaging?
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:
- Reduce their monthly repayments with a mortgage offering a better rate.
- Switch from a variable-rate mortgage to a fixed-term one.
- To increase monthly repayments and pay off their mortgage faster.
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.
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:
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.
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.
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.
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.
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
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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