31 July 2025

How to Remortgage a House

If you’re looking to remortgage your property then you’re in the right place. Here we go through what a remortgage is; how it can help you save money, raise money and consolidate debt; when you can remortgage, how long it takes and more.

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Most homebuyers have heard of remortgaging, but they might not know what it actually entails or whether it’s a viable option for them. In this guide, we go through how it works and when you should – and shouldn’t remortgage.

Remortgaging can help you save money on your monthly repayments, raise the money to pay off some existing debts or fund something like a home improvement project. It’s not suitable for everyone though. We explain when it’s an option, what happens, the process you go through and the costs you may incur below.

What Does Remortgage Mean?

To remortgage means to switch from one mortgage lender to another but stay in the same property. The most common time to remortgage is when your current product has come to its end.

Remortgage with same lender

You wouldn’t ever really remortgage with the same lender, but you can sometimes switch to a new product with them via a product transfer. Call us on 023 8235 2300 to find out how we can help.

Why Remortgage Your House?

In today’s competitive market, many borrowers switch their mortgage every few years to take advantage of new rates. If you remain on your lender’s SVR (standard variable rate) after your initial deal ends, you could pay significantly more than necessary.

Here are some of the main reasons people choose to remortgage:

To save money or secure a better rate

If your fixed or discounted deal is coming to an end, remortgaging can help you avoid moving onto your lender’s higher SVR. You may be able to switch to a more competitive rate, either with your existing lender or a new one.

It’s always worth checking what your current lender can offer first, as they may have retention deals available. However, comparing mortgage deals the wider market can help ensure you’re not missing out on better options.

Remortgaging can also be useful if you’re on a variable rate and want more stability. Switching to a fixed rate could provide greater certainty over your monthly payments.

To consolidate debts

Some homeowners remortgage to consolidate unsecured debts, such as credit cards or personal loans. By releasing equity and increasing the mortgage amount, you can combine multiple repayments into one.

While mortgage rates are typically lower than unsecured borrowing, mortgages run over longer terms, which means you could pay more overall. It’s important to consider the long-term cost and ensure the repayments remain affordable, as your home may be at risk if you fall behind.

To raise money or release equity

If your income has increased or your property has risen in value, you may be able to release equity and raise money through a remortgage. You can raise money for home improvements, large expenses, or even as a deposit for another property.

For some borrowers, this offers a practical alternative to moving house, allowing them to adapt their current home instead.

To gain flexibility or adapt to changing circumstances

Remortgaging can also help if your needs have changed. You may want more flexible terms, the ability to make mortgage overpayments, or a deal that better suits a change in income or personal circumstances.

Switching lender or product can provide access to features and rates that are more aligned with your current financial position.

When Should You Remortgage?

When you take out a new mortgage, you’re normally offered an introductory deal – a reduced rate for a set period and certain freebies, like a free legal service or valuation. Introductory deals can range in length, then once the deal ends, you’re moved onto that lender’s SVR. Their SVR is usually much higher than their introductory rates.

You can start to organise your next mortgage up to 6 months before the end of your existing rate. Mortgage offers can take 3 – 4 weeks to process and the legal work can take 2 – 3 weeks. The new mortgage offer itself is often valid for up to 6 months so, if everything is completed and ready to go early, you can instruct the solicitor to wait until any early repayment charge period with your current lender has expired before proceeding. It’s often worth looking for better rates prior to your current deal finishing, otherwise you could end up paying more than you need to – specifically if the new mortgage isn’t ready to go when your current deal ends and you’re moved onto your lender’s SVR.

How Long Does It Take to Remortgage?

Remortgaging takes, on average, about 4 – 6 weeks, although it can take up to 2 months depending on the lender and your individual circumstances. In some cases it may be quicker, particularly if your application is straightforward.

It’s usually much more straightforward than buying a new home. The deeds of the property are already registered in your name when you remortgage, meaning that a large administrative portion of the mortgage process is eliminated. However, lenders still treat a remortgage as a new mortgage application, so you’ll need to go through many of the same checks.

This can include a mortgage interview, a property valuation, credit checks, and a full review of your income and expenditure. Lenders are now stricter on affordability assessments and will want to ensure you could still afford the mortgage if interest rates were to rise. If your income or outgoings have changed significantly since you last applied, this could affect how long the process takes or whether you’re accepted.

The timeframe can also be influenced by the property valuation. If there are any issues, such as a “down valuation” where the lender values your property lower than expected, this may delay the process. Lenders may be cautious about lending above certain loan-to-value (LTV) thresholds. In more serious cases, if your property is valued at less than your outstanding mortgage balance, you may need to wait for the value to recover or cover the difference yourself.

There can also be delays on the legal and conveyancing side while waiting for Land Registry and financial information to be processed. That said, remortgaging with your current lender may be quicker, as it can sometimes be treated as a product transfer and avoid much of the additional legal work.

Learn more in How Long Does a Remortgage Take?

How to Remortgage – Step by Step

Remortgaging involves replacing your existing mortgage with a new one, either with your current lender or a different provider. Although it’s usually more straightforward than buying a new home, lenders still treat it as a new mortgage application.

Our remortgage process typically works as follows:

Check for early repayment charge

Before doing anything else, check whether you’ll need to pay an early repayment charge (ERC). This is usually a percentage of your outstanding mortgage balance and applies if you leave your deal before the initial period ends. Your lender can confirm the exact amount.

You may also want to request a redemption statement from your current lender. This shows how much is outstanding on your mortgage on a specific date, including any fees associated with repaying it.

Review your credit and finances

Lenders will assess whether you can comfortably afford the new mortgage. That means reviewing your credit report, income, spending and existing commitments.

It’s worth checking your credit report in advance through agencies such as Equifax, Experian or TransUnion. Make sure your details are accurate and that you’re meeting your current mortgage and credit commitments on time.

In the months leading up to your application, try to keep your finances steady. Avoid applying for new credit, using your overdraft regularly or making heavy, erratic purchases. Lenders won’t just look at whether you pay your bills – they’ll also consider how you manage your disposable income.

Understand your property’s value

The amount of equity you hold in your home will influence the deals available to you. Equity is the difference between your property’s value and the amount you still owe on your mortgage.

If your property has increased in value since you bought it, you may qualify for more competitive mortgage rates. It can help to research local sale prices or ask an estate agent for an estimate before comparing deals.

Compare remortgage deals

At this stage, you can start reviewing what’s available. You might:

Speak to your current lender about a new deal (often called a product transfer)
Use a mortgage comparison tool
Speak to a whole-of-market mortgage broker

When considering which mortgage to choose, you should look at all the current deals on offer and the relative advantages these present to your circumstances. While remortgaging with your existing lender can be quicker and may involve less legal work, it doesn’t always mean you’ll get the best rate. Conversely, new lenders who want you to switch to them from your existing lender, are aware they need to give you a reason to change lenders, so they offer competitive rates of interest and free features to make the switch as easy and cost-effective as they can. Deals will vary and what’s best for someone else might not suit you – and vice-versa. A broker can assess your circumstances, compare deals across the market and identify lenders more suited to complex situations, such as self-employed income or past credit issues. You can compare remortgage rates on our website for an idea of what to expect, or see Mortgage Types Explained to learn about the different products available.

If you decide to proceed, your adviser will usually present your case to the new lender for a Decision in Principle (DIP).

Submit your application

Once the DIP is successful, you’ll complete a full mortgage application. You’ll need to provide supporting documents such as:

Proof of identity (e.g. passport)
Proof of address
Payslips or tax calculations
Bank statements

The lender will assess your income, expenditure and credit profile before issuing a formal mortgage offer.

Valuation and legal work

Your new lender will request a mortgage valuation of your property. This may be automated or carried out by a surveyor, depending on the lender and the loan-to-value.

If you’re switching lenders, a solicitor or conveyancer will handle the legal work. They’ll obtain the title deeds and liaise with your existing lender to arrange repayment of your current mortgage. Some lenders offer a free legal service or cashback towards your own solicitor’s costs.

If you’re staying with your existing lender on a product transfer, the process is often simpler and may not require full legal work.

Completion

Once your application is approved and the legal work is complete, you and your solicitor agree a completion date. On that day, the new lender releases the funds, your old mortgage is repaid, and any remaining money (if you’ve borrowed extra) is transferred to you.

Your new mortgage then begins under the agreed terms.

Do You Need a Remortgage Valuation?

Before you start looking at mortgage rates, you need to estimate what your property is worth. It’s important that you’re realistic, as your lender will eventually conduct their own valuation to confirm your estimate – this will be via an online desktop valuation or internal inspection.

You can arrange your own valuation with an independent surveyor to find out the value of your property, but this can be expensive and the lender will still need to instruct their own valuation anyway. You’re better off talking to some local estate agents and using property websites like Zoopla, Rightmove, or On the Market to come to a figure.

Remortgage Costs and Legal Fees

Remortgaging often costs less than buying a new property. A lot of the charges that come with the purchase of property either don’t apply to you or are lower.

A remortgage can lead to a reduction in the price of:

Legal fees – solicitors’ costs should be lower than when buying the property, since the legal process for a remortgage is less complex
Stamp Duty Land Tax – you only pay SDLT when you buy a property so you won’t be liable for this as you already own your property
Homebuyer’s report or survey – you’re unlikely to repeat this exercise as you currently own the property so you know what state it’s in

The costs of remortgaging may include:

Early repayment charges – these are only applicable if you remortgage before your current deal ends, but there might be a “final administration fee” for closing the account
Lender’s booking and arrangement fees – these depend on the product you choose
Broker fees – it’s best to use a broker when you remortgage as they can find you the best deals on the market that are suitable for you and your situation
Valuation fees – you may have to pay valuation fees, but often the lender will do a free valuation
Legal fees – you’ll definitely require a legal service however lenders will often offer a free standard remortgage legal service or cashback to cover such costs

Before you settle on remortgaging, you should look into the fees you’ll have to pay, especially if there’s an early repayment charge on your existing deal. The extent to which these could reduce the potential savings could undermine the whole process. You ideally want to remortgage when it’s most suitable and when you can maximise any savings.

Can You Remortgage Early?

You can remortgage early, but you’ll usually have to pay an ERC (early repayment charge) to your existing lender. An early repayment charge is a penalty fee that’s applied if you repay your mortgage during the introductory deal period. The charge is usually a percentage of your outstanding mortgage debt and can amount to a significant sum.

Remortgaging can be tricky, especially if you want to leave your current deal early. At John Charcol, we’ll walk you through the process, explain your options to you and find the best deal for your situation. Our advisers can tell you everything you need to know.

Who Shouldn’t Remortgage?

Many borrowers have the potential to save money through remortgaging, but it’s not the right choice for everyone.

We’ve listed some examples of when it might not be suitable below. If you fit one or more of these descriptions, give us a call. We’ll help you figure out what your options are.

People with high early repayment charges

If you’ve only recently taken out a fixed rate mortgage or a discount mortgage, you may find that your early repayment charges make remortgaging prohibitively expensive.

Those who need a very small loan

Many lenders only accept remortgage applications when the loan required is above a minimum level of £25,000. Fees can reduce any savings you might make. In this situation, you may be better off taking a new deal with your existing lender.

People whose employment status has changed recently

Lenders need assurance that you can repay your loan, which is why they ask for your likely future income. If you’ve recently changed your work status from employee to self-employed but haven’t yet had the time to build up a reasonable track record, you may find it difficult to find a lender who can accept your situation.

Those with payment history problems or adverse credit

If you’ve had some problems maintaining credit agreements in the recent past, you may find you’re ineligible to mainstream lenders. In this case, you may be better off staying with your current lender and taking a new product with them. We suggest you talk to a broker first as we can check the likelihood of a successful remortgage or arrange a product transfer for you. Adverse and Bad Credit Mortgages are available from specialist lenders with whom John Charcol act as a broker.

People who have an interest-only mortgage with a high LTV

Most lenders will decline those who currently have an interest-only mortgage with a high LTV (loan-to-value ratio), e.g. if your mortgage balance is above 75% of the value of your property most lenders will decline the application on the basis that there isn’t enough equity in it to realistically downsize at the end. It may be best to stick with your current lender and take a new deal with them. Your mortgage adviser can tell you the likelihood of a successful application.

How to Remortgage for Different Circumstances

Remortgaging isn’t one-size-fits-all. Depending on your circumstances, the process and criteria can vary slightly. Below are some of the more common situations where remortgaging works differently.

Remortgaging to raise funds

Many homeowners use a remortgage to release equity from their property. Equity is the difference between your home’s value and the amount outstanding on your mortgage.

You might remortgage to:

Fund home improvements
Consolidate debts
Raise a deposit for another property
Cover large expenses

The additional borrowing is added to your mortgage balance, which could increase your monthly repayments and the total interest paid over time. Lenders may also restrict how much you can borrow depending on the purpose of the funds.

Remortgaging a buy-to-let property

You may want to remortgage a buy-to-let property to secure a better rate, release funds, or restructure your borrowing.

The process of a buy-to-let remortgage is very similar to that of remortgaging your home. However, a buy-to-let mortgage will like have higher fees and interest rates than a residential mortgage. Mortgage lenders will also have certain criteria that you must meet for this type of mortgage such as rental income, stress tests, equity/deposit requirements.

Remortgaging an interest-only mortgage

For an interest-only remortgage

You’ll need to demonstrate a clear repayment strategy for the capital at the end of the term. This could include savings, investments or the planned sale of another property.

Lenders may limit options where loan-to-value is high, particularly if there isn’t sufficient equity in the property.

Remortgaging a shared ownership property

You may choose to remortgage shared ownershp property to buy more shares or secure a better interest rate. With a shared ownership home, you’ll own between 25% and 75% of its value, while paying rent on the remaining share.

Taking out a larger mortgage loan through remortgaging can enable you to buy additional shares until you own the entire property – a process known as “staircasing”.

How to remortgage with bad credit

If you want to remortgage with bad credit, note that you may find fewer mortgages available to you and struggle to get a good rate. Try to improve your credit score before applying for a mortgage, as the lender will look at your credit report while deciding whether to let you have a mortgage.

How to remortgage when you own your house outright

If you own your home outright, with no mortgage on it, all the equity is yours. A property with no loan on it is known as an unencumbered property.

If you need a cash lump sum, you may be able to remortgage. Some mortgage lenders offer remortgages for unencumbered properties, while others provide new purchase deals.

Remortgaging an unencumbered property is similar to a standard remortgage. The lender will review your credit report and finances to ensure you can afford the mortgage. However, you may be able to secure a better interest rate and benefit from certain incentives, such as a free property valuation.

If you remortgage a home you own outright, you’ll likely have access to a wider range of lenders and mortgage products. Lenders typically view this as a lower risk situation, and if you had a mortgage that you paid off previously, this will demonstrate that you’re a reliable borrower.

Assessing Your Options

You can compare remortgage rates on our website for free. We’ll give you a better idea of which remortgage product actually suits you as the best option may not be the cheapest.

Why not also try our free mortgage comparison calculator? It compares the monthly costs of your current mortgage against the other rates on the market, showing you how much you can save.

Finally, give us a call on 023 8235 2300 and speak to one of our expert mortgage advisers or make an enquiry. We’ve arranged hundreds of remortgages, so feel confident that we’ll find you the best one to suit your needs.

Remortgage FAQS

How much can I borrow with a remortgage?

The amount you can borrow when remortgaging will depend on your situation. It’s primarily based on 3 factors: affordability, security and the purpose for raising funds.

Affordability

You’ll have to meet the lender’s affordability criteria for the amount you want to borrow, just as you would with a home buying mortgage. Maximum borrowing is typically capped at around 4.5x your annual income. You must also be able to afford the monthly payments based on your income and outgoings.

The security or property

The security or property must meet the lender’s criteria. Every lender will have different appetites, criteria and maximum LTVs (loan-to-values) they will offer on certain types of properties, such as new builds, flats, houses of standard and non-standard construction, etc. For a typical property, most lenders will let you borrow up to 90% LTV on the property, assuming you meet the lender’s affordability criteria and have the equity available. A few lenders may even be willing to offer up to 95% LTV. Note that some lenders may cap the maximum LTV in certain situations, we explain this in the next section.

The purpose for raising the funds

Some lenders may limit the maximum LTV available to you depending on what you plan to do with the funds you want to release. For example, you may have your LTV capped to 85% or less if you’re remortgaging for debt consolidation.

Our remortgage calculator can help you see how much you could get when you remortgage.

What information will I need to remortgage?

Your remortgage application will require many documents, such as proof of identification, income details, outgoings and information on any debts, and your credit history. Your mortgage broker will explain what information you need to provide the lender with.

Is there an age limit for remortgaging?

There is no firm age limit for getting a remortgage deal. However, most lenders will want the mortgage repayments to end before you turn 75. If you’re past retirement age, or would retire during the term of your mortgage, you’ll have to provide proof that your savings or pension can cover the mortgage repayments.

What happens if my remortgage application is rejected?

If your remortgage application is rejected, you should try to find out why. Your mortgage adviser will be able to help you with this.

Having this information will allow you to find a lender with criteria more suited to your situation and help you address the issues that meant you were unable to get a deal to remortgage your home. However, it’s important not to start too many remortgage applications if you think they could be rejected, as this could damage your credit score and your chance of being accepted. Instead, you could speak to a broker to help find a lender that will accept you. Get in touch with an expert mortgage adviser on 023 8235 2300.

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