How does remortgaging work?
Find out more about how remortgaging works and why you might choose to remortgage.
Remortgaging means taking out a new mortgage on your current property with a different lender. This new mortgage deal will then replace your old one.
Your new deal could have a different mortgage rate, different monthly repayments and new terms and conditions.
Remortgaging is not the same as switching to a new deal with your existing lender. This is known as a product transfer and follows a different process.
Thinking of remortgaging to Lloyds?
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- See our latest mortgage deals and interest rates.
- Work out what your new monthly repayments could be.
You could lose your home if you don’t keep up your mortgage repayments
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Type |
What is it? |
When might you choose this type |
|---|---|---|
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Type Remortgage |
What is it? When you take out a new deal with a different lender. It might help you get a deal that's better suited to your current situation. |
When might you choose this type If your current mortgage is coming to an end. Start comparing your options 3 to 6 months before your existing deal ends. |
|
Type Remortgaging to change ownership |
What is it? This involved changing the name on your mortgage qnd title deeds. There are legal steps involved with transferring property ownership or changing property title amendmentds. |
When might you choose this type If you're:
|
|
Type Remortgage an unemcumbered property |
What is it? An unemcumbered property means you fully own you home. You could remortgage the property to release some of your equity as a lump sum of money. |
When might you choose this type If at the moment you're mortgage-free and want to access a lump sum from your home. You may want to raise money for things like:
|
Remember that terms and conditions apply to all types of remortgaging.
Time for a remortgage refresher?
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If you’re remortgaging to a new lender, you’ll need a conveyancer. This is a solicitor who specialises in property law.
Lenders sometimes offer to pay for a conveyancer when you remortgage. Alternatively, you can source your own.
Learn more about conveyancing when remortgaging.
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There are some potential costs to be aware of when you mortgage, including:
- early repayment charges
- valuation fees
- legal fees.
Your new lender might cover some of these costs, so it’s worth checking before you remortgage. For example, at Lloyds, we can help cover your basic legal fees and won’t charge you a valuation fee when remortgaging to us.
Learn more about how much it costs to remortgage.
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As with any financial decision, there could be risks that mean remortgaging is not the right choice for you. Some of the risks to consider might include:
- interest rates - your current mortgage may already have the best rate you can get, so you might not save by remortgaging
- early repayment payment periods - if you’re ending your current mortgage deal early, you might have to pay an early repayment charge
- negative equity - if you owe more on your mortgage than your house is worth, you’re in negative equity. Homeowners with negative or low equity might find it harder to remortgage.
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Lenders will usually run a hard credit check when you apply to remortgage your home. This type of credit check will show up on your credit report and could temporarily affect your score.
If your application is successful, you should see your score return to normal. But, if your application is denied, this might have a negative impact on your credit score. You’ll also need to keep up with your repayments to maintain or even improve your credit score.
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Yes, your house may get revalued when you remortgage. This is to check you’re suitable for a mortgage lender’s products. They will need to check the current market value of your property and your loan to value ratio.
If you’re switching to a new deal with the same lender, they might want to revalue your property if you want to borrow more.
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