What Is Remortgaging and How Does It Work?

Remortgaging is the process of changing your mortgage on your existing property to a new one, switching from one mortgage lender to another. This new mortgage takes the place of the previous mortgage you had on the property. Many homeowners choose to remortgage when coming to the end of their existing rate, looking for a better deal or planning to borrow more money against a property.

When Is Remortgaging Suitable?

Remortgaging may be suitable for you if:

  • The introductory deal on your current mortgage is due to end soon and you’d like to avoid being transferred onto your lender’s SVR (standard variable rate)
  • You want to consolidate multiple other debts
  • You need money to fund home improvements
  • You have a large expense coming up - like a wedding or school fees, or you want to help your children with a deposit, etc
  • Your property has increased in value and you want to benefit from a lower rate by going onto a lower LTV product
  • Your existing lender’s product transfer rate is high and remortgaging would be more cost-effective

Remortgaging may be unsuitable for you if:

  • You need a small mortgage below £20,000
  • You took out your current mortgage within the last 6 months
  • Your mortgage has high ERCs (early repayment charges)

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Compare Remortgage Rates

Compare the best remortgage rates and cheapest deals currently on the market.

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We've found 1,582 remortgage deals that match your search

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Scheme ID 4877
Initial rate ? 0.89% then 4.35% (variable)
Monthly repayments ? £ 1,116
Type/Duration ? Fixed  until 01/01/0001
Scheme fees ? £995
Cost comparison ? £27,273

Fees & Charges

Booking fees £0
Arrangement fees £0
Valuation fees £0
Other fees £0
Cashback £500

Flexibility

Max LTV 60%
Overpayments allowed? Yes
Early Repayment charges £170, plus (3% in years 1-2)

Other info

Exit fees £170
Basic legals £0

Representative example: A mortgage of £300,000 payable over 25 years on a repayment basis, initially on a fixed rate for 2 years at 0.89%, and then on a variable rate for 23 years at 4.35%. This would require 24 payments of £1,115.74 and 276 payments of £1,597.62. The total amount payable would be £468,386 made up of the loan amount plus interest (£167,391) and fees (£1,165 which includes exit fees of £170). The overall cost for comparison is 3.84% APRC representative.

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Scheme ID 4874
Initial rate ? 0.89% then 4.35% (variable)
Monthly repayments ? £ 1,116
Type/Duration ? Fixed  until 01/01/0001
Scheme fees ? £995
Cost comparison ? £27,773

Fees & Charges

Booking fees £0
Arrangement fees £0
Valuation fees £0
Other fees £0
Cashback £0

Flexibility

Max LTV 60%
Overpayments allowed? Yes
Early Repayment charges £170, plus (3% in years 1-2)

Other info

Exit fees £170
Basic legals £0

Representative example: A mortgage of £300,000 payable over 25 years on a repayment basis, initially on a fixed rate for 2 years at 0.89%, and then on a variable rate for 23 years at 4.35%. This would require 24 payments of £1,115.74 and 276 payments of £1,597.62. The total amount payable would be £468,886 made up of the loan amount plus interest (£167,891) and fees (£1,165 which includes exit fees of £170). The overall cost for comparison is 3.84% APRC representative.

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Scheme ID 39068
Initial rate ? 0.99% then 4.35% (variable)
Monthly repayments ? £ 1,129
Type/Duration ? Fixed  until 01/01/0001
Scheme fees ? £995
Cost comparison ? £28,097

Fees & Charges

Booking fees £0
Arrangement fees £0
Valuation fees £0
Other fees £0
Cashback £0

Flexibility

Max LTV 75%
Overpayments allowed? Yes
Early Repayment charges £170, plus (3% in years 1-2)

Other info

Exit fees £170
Basic legals £0

Representative example: A mortgage of £300,000 payable over 25 years on a repayment basis, initially on a fixed rate for 2 years at 0.99%, and then on a variable rate for 23 years at 4.35%. This would require 24 payments of £1,129.26 and 276 payments of £1,599.10. The total amount payable would be £469,619 made up of the loan amount plus interest (£168,624) and fees (£1,165 which includes exit fees of £170). The overall cost for comparison is 3.85% APRC representative.

0330 433 2927

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Scheme ID 39081
Initial rate ? 0.99% then 4.35% (variable)
Monthly repayments ? £ 1,129
Type/Duration ? Fixed  until 01/01/0001
Scheme fees ? £995
Cost comparison ? £27,597

Fees & Charges

Booking fees £0
Arrangement fees £0
Valuation fees £0
Other fees £0
Cashback £500

Flexibility

Max LTV 75%
Overpayments allowed? Yes
Early Repayment charges £170, plus (3% in years 1-2)

Other info

Exit fees £170
Basic legals £0

Representative example: A mortgage of £300,000 payable over 25 years on a repayment basis, initially on a fixed rate for 2 years at 0.99%, and then on a variable rate for 23 years at 4.35%. This would require 24 payments of £1,129.26 and 276 payments of £1,599.10. The total amount payable would be £469,119 made up of the loan amount plus interest (£168,124) and fees (£1,165 which includes exit fees of £170). The overall cost for comparison is 3.85% APRC representative.

0330 433 2927

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Scheme ID 4879
Initial rate ? 1.14% then 4.35% (variable)
Monthly repayments ? £ 1,150
Type/Duration ? Fixed  until 01/01/0001
Scheme fees ? £0
Cost comparison ? £27,594

Fees & Charges

Booking fees £0
Arrangement fees £0
Valuation fees £0
Other fees £0
Cashback £0

Flexibility

Max LTV 60%
Overpayments allowed? Yes
Early Repayment charges £170, plus (3% in years 1-2)

Other info

Exit fees £170
Basic legals £0

Representative example: A mortgage of £300,000 payable over 25 years on a repayment basis, initially on a fixed rate for 2 years at 1.14%, and then on a variable rate for 23 years at 4.35%. This would require 24 payments of £1,149.73 and 276 payments of £1,601.30. The total amount payable would be £469,722 made up of the loan amount plus interest (£169,722) and fees (£170 which includes exit fees of £170). The overall cost for comparison is 3.85% APRC representative.

0330 433 2927

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Scheme ID 4882
Initial rate ? 1.14% then 4.35% (variable)
Monthly repayments ? £ 1,150
Type/Duration ? Fixed  until 01/01/0001
Scheme fees ? £0
Cost comparison ? £27,094

Fees & Charges

Booking fees £0
Arrangement fees £0
Valuation fees £0
Other fees £0
Cashback £500

Flexibility

Max LTV 60%
Overpayments allowed? Yes
Early Repayment charges £170, plus (3% in years 1-2)

Other info

Exit fees £170
Basic legals £0

Representative example: A mortgage of £300,000 payable over 25 years on a repayment basis, initially on a fixed rate for 2 years at 1.14%, and then on a variable rate for 23 years at 4.35%. This would require 24 payments of £1,149.73 and 276 payments of £1,601.30. The total amount payable would be £469,222 made up of the loan amount plus interest (£169,222) and fees (£170 which includes exit fees of £170). The overall cost for comparison is 3.85% APRC representative.

0330 433 2927

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Scheme ID 2027
Initial rate ? 1.26% then 3.74% (variable)
Monthly repayments ? £ 1,166
Type/Duration ? Fixed  until 31/05/2024
Scheme fees ? £1,034
Cost comparison ? £29,025

Fees & Charges

Booking fees £0
Arrangement fees £0
Valuation fees £0
Other fees £0
Cashback £0

Flexibility

Max LTV 60%
Overpayments allowed? Yes
Early Repayment charges £80, plus (2% until 31-05-24) of balance repaid

Other info

Exit fees £80
Basic legals £0

Representative example: A mortgage of £300,000 payable over 25 years on a repayment basis, initially on a fixed rate for 2 years and 4 months at 1.26%, and then on a tracker rate for 22 years and 8 months at 3.74%. This would require 28 payments of £1,166.28 and 272 payments of £1,505.38. The total amount payable would be £443,233 made up of the loan amount plus interest (£142,199) and fees (£1,114 which includes exit fees of £80). The overall cost for comparison is 3.33% APRC representative.

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Scheme ID 798
Initial rate ? 1.26% then 3.74% (variable)
Monthly repayments ? £ 1,166
Type/Duration ? Fixed  until 31/05/2024
Scheme fees ? £1,034
Cost comparison ? £29,025

Fees & Charges

Booking fees £0
Arrangement fees £0
Valuation fees £0
Other fees £0
Cashback £0

Flexibility

Max LTV 60%
Overpayments allowed? Yes
Early Repayment charges £80, plus (2% until 31-05-24) of balance repaid

Other info

Exit fees £80
Basic legals £0

Representative example: A mortgage of £300,000 payable over 25 years on a repayment basis, initially on a fixed rate for 2 years and 4 months at 1.26%, and then on a tracker rate for 22 years and 8 months at 3.74%. This would require 28 payments of £1,166.28 and 272 payments of £1,505.38. The total amount payable would be £443,233 made up of the loan amount plus interest (£142,199) and fees (£1,114 which includes exit fees of £80). The overall cost for comparison is 3.33% APRC representative.

0330 433 2927

or

Enquire now

Scheme ID 12315
Initial rate ? 1.26% then 3.74% (variable)
Monthly repayments ? £ 1,166
Type/Duration ? Fixed  until 31/05/2024
Scheme fees ? £1,034
Cost comparison ? £28,775

Fees & Charges

Booking fees £0
Arrangement fees £0
Valuation fees £0
Other fees £0
Cashback £250

Flexibility

Max LTV 60%
Overpayments allowed? Yes
Early Repayment charges £80, plus (2% until 31-05-24) of balance repaid

Other info

Exit fees £80
Basic legals £0

Representative example: A mortgage of £300,000 payable over 25 years on a repayment basis, initially on a fixed rate for 2 years and 4 months at 1.26%, and then on a tracker rate for 22 years and 8 months at 3.74%. This would require 28 payments of £1,166.28 and 272 payments of £1,505.38. The total amount payable would be £442,983 made up of the loan amount plus interest (£141,949) and fees (£1,114 which includes exit fees of £80). The overall cost for comparison is 3.33% APRC representative.

0330 433 2927

or

Enquire now

Scheme ID 12319
Initial rate ? 1.26% then 3.74% (variable)
Monthly repayments ? £ 1,166
Type/Duration ? Fixed  until 31/05/2024
Scheme fees ? £1,034
Cost comparison ? £28,775

Fees & Charges

Booking fees £0
Arrangement fees £0
Valuation fees £0
Other fees £0
Cashback £250

Flexibility

Max LTV 60%
Overpayments allowed? Yes
Early Repayment charges £80, plus (2% until 31-05-24) of balance repaid

Other info

Exit fees £80
Basic legals £0

Representative example: A mortgage of £300,000 payable over 25 years on a repayment basis, initially on a fixed rate for 2 years and 4 months at 1.26%, and then on a tracker rate for 22 years and 8 months at 3.74%. This would require 28 payments of £1,166.28 and 272 payments of £1,505.38. The total amount payable would be £442,983 made up of the loan amount plus interest (£141,949) and fees (£1,114 which includes exit fees of £80). The overall cost for comparison is 3.33% APRC representative.

0330 433 2927

or

Enquire now

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Why Use a Remortgage Broker like John Charcol?

We Take Care of Everything

With over 45 years of service, we've seen it all. We can save you money, time and make remortgaging your property easy.

We're Highly Recommended

We have over 1,800 5* reviews on reviews.co.uk, so you can feel confident that your mortgage is in the right hands.

We Give Personal, Expert Advice

We work around your schedule to help you arrange a mortgage that suits your circumstances, no matter how complex.

Remortgage Process

1. First Call

When you contact us, we’ll arrange an appointment between you and one of our advisers – this can be over the phone, via video chat or in-person. Your adviser will ask you some questions and, once they have all the right information, they’ll go away and find you the best mortgage for your current and future needs. They’ll then organise a follow up appointment to tell you about their recommendation.

2. Decision in Principle

After your adviser has presented you with their recommendation and you’re happy to proceed, they’ll work on securing your DIP (Decision in Principle). Your DIP is a promise from the lender that they’ll loan you the money on the condition that the information you’ve provided is correct and subject to a valuation on the property.

3. Pre-Application and Submission

Once the lender secures your DIP, we’ll start to prepare your mortgage application. We’ll send you a pack that explains all the different documents the lender needs. You’ll be assigned a client relationship manager who’ll go through your documents and get everything ready for submission. Your adviser will then submit your full mortgage application.

4. Lender Underwriting and Valuation

The lender carries out a process called “underwriting” where they check all the information and documents you’ve provided in your application. They’ll also instruct a mortgage valuation on the property to make sure there are no significant problems with it. Sometimes a lender will only instruct a desktop valuation – rather than a physical valuation – as your property would have likely had a valuation and internal inspection when you took out your first mortgage.

5. Mortgage Offer

Following a successful underwriting process and valuation, the lender will accept your application and send you a mortgage offer. They’ll also send a copy to us.

6. Conveyancing

After you accept the mortgage offer, you’ll go through conveyancing which is where a solicitor arranges all the legal paperwork so you can transfer from one lender to another.

7. Completion

Finally, after you’ve signed all the paperwork, your solicitor will set a date to draw down the new money to clear the outstanding balance with your current lender. Any excess funds will be returned to you. This is called completion.

Is Remortgaging a Good Idea?

Benefits

You Can Save Money

When you come off your introductory deal you’ll go onto your lender’s SVR, which will be higher than your original rate. Switching to a new deal can help you make significant savings.


It Can Help You Avoid Moving Home

Remortgaging and adapting or adding an extension to your current property can be cheaper than moving home.


You Can Raise Money

Remortgaging for an amount that’s larger than the outstanding balance on your remaining mortgage can help you pay for major outgoings, rather than borrowing separately - and in some cases more expensively - from other sources.


It Can Help You Accommodate a Change in Your Circumstances

If your financial situation has changed, you may need a new mortgage that accommodates different needs – like higher overpayments or a lower monthly rate. Remortgaging is a way to replace your current mortgage with one that better suits your requirements.

Potential Issues

You May End Up Paying More Overall When You Consolidate Debts

Remortgaging can help you pay off urgent debts but, as you would typically have a mortgage for a long period of time, you could end up paying more interest in the long term even though mortgage interest rates are usually lower than those for a lot of other types of loan.


You Could Face ERCs (Early Repayment Charges)

If you try remortgaging too early - i.e. before the introductory deal on your current mortgage ends - you could face ERCs which can make it expensive.


It Can Take Longer than a Product Transfer with a Further Advance

When you remortgage and switch to a new deal with a new lender, you have to go through conveyancing which is the legal part of the process – although this isn't as extensive as when you purchase a new property. Therefore, if you need funds quickly, you may find a product transfer with a further advance more suitable as there’s no conveyancing involved.

What Fees Are Involved When You Remortgage?

When you remortgage a property, there are sometimes fees including lender fees, conveyancing fees and valuation fees - although some lenders may offer conveyancing and valuations for free as part of your remortgage deal.

Average Remortgage Fees and Costs

Lender's Product Fee Valuation Fees Legal Fees Booking Fees
£0 - £1,499* £0 - £1,500* £0 - £500 (Plus VAT)* £99 - £250*

What Our Customers Think

What our customers say

John Charcol

John Charcol0330 057 5173£

Cutlers Exchange, 123 HoundsditchLondonEC3A 7BU

Excellent

90%

1996 Total reviews

4.85 Average rating

  • 5

    Emily and Nick have been incredible. Both delivered an outstanding service. Great communication and everything was done in a timely manner. Look forward to working with you both again in the near future.

    Posted
  • 5

    Randeep Sodhi provided an excellent service; he was consultative, helpful and matched us with a financial product which met our needs. He kept us informed with regular updates, thereby minimising any concerns, which we are very grateful for. Very professional - 5 stars - would highly recommend.

    Posted
  • 5

    Emily Gould and Tiara Hardy are the ‘Dream Team’ when it comes to second charge mortgage finance. I had the fortune of being referred to them, and they sorted two separate cases on different properties within one year. Tiara ensured the cases were fully understood and researched, with the best products sourced; Emily then kicks in with ensuring that the case runs smoothly to completion. Neither case was straightforward, but all obstacles were overcome. It was clear both times that Tiara and Emily both have good relationships with the relevant lenders, which always made the difference. Emails returned on time, phone calls made when necessary; job done. I would recommend John Charcol, and particularly Emily Gould and Tiara Hardy, without hesitation. Thanks guys, both times round. You’re both a credit to John Charcol.

    Posted
  • 5

    Tiara Hardy and Emily Gould have been fantastic every step of the way in arranging specialist finance for my latest renovation project. Having been a mortgage broker myself for many years I know good service when I see it. In particular, Emily supported the whole case through to completion even working the case on her days off which is above and beyond so a massive thanks needs to go to her for that. Best wishes for Christmas to all the team and looking forward to more future projects together.

    Posted
  • 5

    Andrew Ireland at John Charcol was fantastic. Our circumstances meant that getting a mortgage wasn't straightforward but Andrew listened to our needs and advised us on the best way forward. There was a significant issue with the lender and their valuer going around in circles but Andrew's persistence meant that the issue was resolved and we were able to move forward. If we had being doing this ourselves the purchase would almost certainly have fallen through. Very, very highly recommended.

    Posted
  • 5

    Top professionals I have to say, trustable and reliable. My case was dealt by Scott Barron and Louise Cheatle (was Toni Walker before Louise Cheatle) My entire year is almost dealing with three small purchases, with one purchase failed within ten days. It’s all nightmare that i wake up in the morning I know I have to deal with estate agents, lenders and solicitors like a full time job, especially solicitors because most of them create issues on purpose My case with them I have a crazy lender, got my mortgage application into four months and a half. The crazy people will never create one problem, but a series problems, then all consequences came to me one by one. Scott has showed enough patience and professionalism to bring everything back on track once and once again. I was actually thinking if my case was not with him, should fail at early stage. I should say BIG THANK YOU

    Posted
  • 5

    We dealt with Andrew Ireland at John Charcol. He was truly outstanding. Our case was complex, involving refinancing on two properties. Andrew gave really clear guidance on our options from the start and then kept on our case with the lenders and the legal teams throughout. We tried several brokers while seeking advice on our refinancing needs. John Charcol and Andrew Ireland were the best by a mile. None of the other brokers gave such clear guidance at the beginning and, in their rush to say they could help, the others failed to factor in key information which was crucial to the lenders who would lend in our circumstances.

    Posted
  • 5

    My husband and I couldn't recommend John Charcol enough to our family and friends! The service we have received has been outstanding. We wanted to say a massive thankyou to Scott, Fiona and Chantelle in assisting us with our house move. They have gone above and beyond with helping us over the past 13 months, and guided us through all the obstacles that were thrown our way during the pandemic and chains collapsing. They took all the stress away from us and made the whole process run as smoothly as possible.

    Posted
  • 5

    Gets the job done, good channels of communication! Completed my case swiftly and effectively.

    Posted
  • 5

    My wife and I had a wonderful experience working with Randeep Sodhi of John Charcol for our investment property mortgage loan. From beginning to end he was very informative, extremely thorough and attentive to our financial needs, thus making sure that we were getting the best deal possible. He is one of the most knowledgeable, honest professional mortgage advisor we have ever worked with. He kept us advised every step of the mortgage process, explaining the reason for every obscure document requested from us. His manner was always friendly and he was always available to our every question we had. We highly recommend Randeep Sodhi and his company to our friends. We will certainly use him in future. He is remarkable and a five star advisor.

    Posted

Remortgages FAQs

How Long Does Remortgaging Your Home Take?

Remortgaging takes about 4 - 8 weeks on average. It can take slightly less or slightly more, depending on your circumstances and needs.

Providing clear, accurate and relevant documents when required can help speed up the process.

What Mortgages Are Available?

With John Charcol, you can find the latest rates from all types of mortgages available from lenders. Your adviser will help you decide whether to choose a repayment mortgage or an interest-only mortgage. They'll also help you figure out whether to opt for a fixed rate mortgage or a variable rate mortgage.

Do I Have to Get My House Valued if I Remortgage?

You’ll need to get your house valued if you’re changing lenders; this could be either a desktop valuation or a physical one. You won’t need a valuation if you’re doing a product transfer with your current lender. 

Do I Need to Wait Until My Current Deal Ends?

Remortgaging before your introductory deal ends is possible, however it’s likely you’ll face ERCs which can make doing this expensive.

You can start arranging your new mortgage up to 6 months before your current introductory rate ends. If it’s ready early, your solicitor can wait until any ERC period passes before taking the final steps to put it in place.

Can I Raise Money on My Current Property to Buy Another House?

Remortgaging can be a way to raise funds to buy another property, whether it’s a second home, holiday let, buy-to-let, etc. These funds can form part or all of the deposit on another property or, if you raise enough, you can buy the property outright with cash. You’ll need to declare to HMRC and/or your lender(s) which property will be your new main residence.

If you want to release equity from your existing property to buy another and convert your existing property to a buy-to-let at the same time, you’ll go through a process called let to buy.

Will Having Bad Credit Affect My Options?

Having bad credit will limit your choice of lenders, depending on the extent of the bad credit and how recent it was.

Can Remortgaging Help Me Pay Off Debt?

Remortgaging can help you pay off your debt in the sense that it can allow you to consolidate multiple debts – e.g. car loan, credit card balances. The new mortgage that you would take out would need to be for an amount that's higher than the amount remaining on your current mortgage. This would enable you to release some equity that you could use to pay off your debts.

It’s important to note that remortgaging to consolidate debts can sometimes result in you paying more overall as, although mortgages have lower interest rates than a lot of other loans, they come with longer terms which means you earn and pay interest for a longer period.

Nevertheless, this may be a suitable option for you if your current debts have high interest rates or you need to pay them off soon.

How Does Remortgaging for Home Improvements Work?

Remortgaging can be a way for you to borrow some extra money to fund home improvements. Essentially, you borrow more on the new mortgage than the amount you have outstanding on your existing mortgage. This extra amount can then be used to pay for improvements on your property.

One major benefit of raising funds this way is that all of your mortgage will be on the same introductory product rather than some of it being on a further advance rate, as these can often be higher than introductory rates. Another benefit is that the value of your property should increase after the work's done - assuming there are no sudden decreases in property values.

Will I Need a Solicitor When Remortgaging?

You’ll need a solicitor as you still have to go through conveyancing, although it will be much more straightforward than buying a new property since there won’t be an exchange of contracts or change of ownership.

Will Remortgaging Be Cheaper than Being Transferred onto My Lender’s SVR?

A lender’s SVR is often at least 2% higher than their current products. Many people choose to switch to a new deal with a different lender when their existing introductory deal ends as another lender’s deal will almost certainly always be cheaper than going onto their existing lender's SVR.

What Information Is Required to Remortgage?

Your lender will request a few documents as part of your remortgage application. These might include:

  • Bank statements from the last 3 months
  • Pay slips from the last 3 months
  • Last 2 - 3 years of accounts/tax returns if you’re self-employed
  • Your latest P60 tax form
  • A passport or driving licence
  • Proof of address - as shown in a utility or Council Tax bill

Home Insurance

Do you want new home insurance to go with that new mortgage? Our in-house team can arrange bespoke buildings and contents insurance to suit your new requirements, for free.

Learn More

Protection 

With John Charcol, you’ll have the option of speaking to your very own expert protection adviser who’ll learn about your situation and find the right cover for your needs.

Learn More

JC Legal

We can find you a solicitor to manage the conveyancing part of the process with JC Legal. We choose from an exclusive panel of carefully selected solicitors and conveyancers, saving you time and ensuring you receive excellent service.

Learn More

Equity Release

It’s easy to overlook your property as part of your finances, but your home is probably the biggest asset you have. Release money from your home with John Charcol's partnership with Key Retirement. Find out more and start the process today.

Learn More

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