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How does remortgaging work?
Remortgaging can be a useful way to get a new mortgage deal by moving your mortgage to a different lender.
Find out more about how remortgaging works.
What is remortgaging?
Remortgaging is when you take 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 rate, different monthly repayments and new terms and conditions.
Is remortgaging right for me?
Remortgaging is a bit different to transferring or porting your mortgage.
Remortgage |
Means taking out a new deal with a different lender. |
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Product transfer |
Switch your mortgage deal but stay with your current lender. |
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Move your existing mortgage deal to a new home with the same lender. |
Reasons to remortgage
Planning to remortgage
Learn how long the remortgage process could take, and when you can do this.
How to remortgage
There are lots of steps involved in remortgaging, but we’ll help you every step of the way.
Thinking of remortgaging to Lloyds?
Remortgage Calculator
- 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
Let’s look at the details
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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.
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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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Moving your mortgage deal to another lender is just one type of remortgaging. Other types might include:
- remortgaging to change ownership – this involves changing the names on your mortgage and title deeds
- An unencumbered remortgage – this might be an option if you’re mortgage-free but want to access some of the equity in your home.
Terms and conditions apply to both types of remortgaging.
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Lenders usually check your affordability when you remortgage. This can help them decide whether to lend to you. They might also carry out a valuation of your property to check if the property is suitable for a mortgage.
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Some lenders run a hard credit check when you remortgage. This could temporarily affect your credit score. It’s best to check with your lender before applying to find out what type of credit check they carry out.
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Yes, your house may get revalued when your 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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