How Does Remortgaging Work?

Remortgaging is where you take out a new mortgage with a new lender on a property you already own and have a mortgage on. The new mortgage takes the place of the mortgage you originally had on the property.

When Is It 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.

Remortgaging may be unsuitable for you if:

  • You need a small mortgage below £25,000
  • You need to borrow a very high percentage of your property’s value
  • You took out your current mortgage very recently
  • Your mortgage has high ERCs (early repayment charges)

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Scheme ID 15469
Initial rate ? 0.95% then 4.34% (variable)
Monthly repayments ? £ 1,124
Type/Duration ? Variable
Scheme fees ? £1,499
Cost comparison ? £28,221

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 £250, plus (2% until 31-08-22, 1% until 31-08-23)

Other info

Exit fees £50
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 2 months at 0.95%, and then on a variable rate for 22 years and 10 months at 4.34%. This would require 26 payments of £1,123.84 and 274 payments of £1,593.37. The total amount payable would be £467,102 made up of the loan amount plus interest (£165,603) and fees (£1,549 which includes exit fees of £50). The overall cost for comparison is 3.81% APRC representative.

0344 346 3672

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Scheme ID 40515
Initial rate ? 0.98% then 3.59% (variable)
Monthly repayments ? £ 1,128
Type/Duration ? Variable
Scheme fees ? £1,025
Cost comparison ? £27,845

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 1.5% until 31-08-22, 0.75% until 31-08-23

Other info

Exit fees £0
Basic legals £0

Representative example: A mortgage of £300,000 payable over 25 years on a repayment basis, initially on a tracker rate for 2 years and 2 months at 0.98%, and then on a variable rate for 22 years and 10 months at 3.59%. This would require 26 payments of £1,127.90 and 274 payments of £1,481.68. The total amount payable would be £436,081 made up of the loan amount plus interest (£135,056) and fees (£1,025 which includes exit fees of £0). The overall cost for comparison is 3.18% APRC representative.

0344 346 3672

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Scheme ID 36806
Initial rate ? 0.98% then 3.59% (variable)
Monthly repayments ? £ 1,128
Type/Duration ? Variable
Scheme fees ? £1,025
Cost comparison ? £27,845

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 1.5% until 31-08-22, 0.75% until 31-08-23

Other info

Exit fees £0
Basic legals £0

Representative example: A mortgage of £300,000 payable over 25 years on a repayment basis, initially on a tracker rate for 2 years and 2 months at 0.98%, and then on a variable rate for 22 years and 10 months at 3.59%. This would require 26 payments of £1,127.90 and 274 payments of £1,481.68. The total amount payable would be £436,081 made up of the loan amount plus interest (£135,056) and fees (£1,025 which includes exit fees of £0). The overall cost for comparison is 3.18% APRC representative.

0344 346 3672

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Scheme ID 16894
Initial rate ? 0.99% then 3.59% (variable)
Monthly repayments ? £ 1,129
Type/Duration ? Variable
Scheme fees ? £1,495
Cost comparison ? £28,597

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 2% until 31-08-22, 1% until 31-08-23

Other info

Exit fees £0
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 2 months at 0.99%, and then on a variable rate for 22 years and 10 months at 3.59%. This would require 26 payments of £1,129.26 and 274 payments of £1,481.83. The total amount payable would be £436,877 made up of the loan amount plus interest (£135,382) and fees (£1,495 which includes exit fees of £0). The overall cost for comparison is 3.20% APRC representative.

0344 346 3672

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Scheme ID 19650
Initial rate ? 0.99% then 3.59% (variable)
Monthly repayments ? £ 1,129
Type/Duration ? Variable
Scheme fees ? £1,519
Cost comparison ? £28,121

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 £65, plus (1.5% in year 1, 0.75% in year 2)

Other info

Exit fees £65
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 3.59%. This would require 24 payments of £1,129.26 and 276 payments of £1,484.49. The total amount payable would be £437,905 made up of the loan amount plus interest (£136,386) and fees (£1,584 which includes exit fees of £65). The overall cost for comparison is 3.23% APRC representative.

0344 346 3672

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Scheme ID 8169
Initial rate ? 0.99% then 3.54% (variable)
Monthly repayments ? £ 1,129
Type/Duration ? Variable
Scheme fees ? £1,016
Cost comparison ? £28,118

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 2% until 31-08-22, 1% until 31-08-23 with a fee free allowance of 10%

Other info

Exit fees £0
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 2 months at 0.99%, and then on a variable rate for 22 years and 10 months at 3.54%. This would require 26 payments of £1,129.26 and 274 payments of £1,474.52. The total amount payable would be £434,395 made up of the loan amount plus interest (£133,379) and fees (£1,016 which includes exit fees of £0). The overall cost for comparison is 3.14% APRC representative.

0344 346 3672

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Scheme ID 7226
Initial rate ? 0.99% then 5.19% (variable)
Monthly repayments ? £ 1,129
Type/Duration ? Variable
Scheme fees ? £1,515
Cost comparison ? £28,617

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 1% in year 1, 0.5% in year 2

Other info

Exit fees £85
Basic legals £0

Representative example: A mortgage of £300,000 payable over 25 years on a repayment basis, initially on a variable rate for 2 years at 0.99000000000000021%, and then on a variable rate for 23 years at 5.19%. This would require 24 payments of £1,129.26 and 276 payments of £1,731.16. The total amount payable would be £506,502 made up of the loan amount plus interest (£204,987) and fees (£1,600 which includes exit fees of £85). The overall cost for comparison is 4.57% APRC representative.

0344 346 3672

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Scheme ID 16922
Initial rate ? 0.99% then 3.59% (variable)
Monthly repayments ? £ 1,129
Type/Duration ? Variable
Scheme fees ? £1,495
Cost comparison ? £28,297

Fees & Charges

Booking fees £0
Arrangement fees £0
Valuation fees £0
Other fees £0
Cashback £300

Flexibility

Max LTV 60%
Overpayments allowed? Yes
Early Repayment charges 2% until 31-08-22, 1% until 31-08-23

Other info

Exit fees £0
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 2 months at 0.99%, and then on a variable rate for 22 years and 10 months at 3.59%. This would require 26 payments of £1,129.26 and 274 payments of £1,481.83. The total amount payable would be £436,577 made up of the loan amount plus interest (£135,082) and fees (£1,495 which includes exit fees of £0). The overall cost for comparison is 3.20% APRC representative.

0344 346 3672

or

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Scheme ID 19702
Initial rate ? 0.99% then 3.59% (variable)
Monthly repayments ? £ 1,129
Type/Duration ? Variable
Scheme fees ? £1,519
Cost comparison ? £28,621

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 £65, plus (1.5% in year 1, 0.75% in year 2)

Other info

Exit fees £65
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 3.59%. This would require 24 payments of £1,129.26 and 276 payments of £1,484.49. The total amount payable would be £438,405 made up of the loan amount plus interest (£136,886) and fees (£1,584 which includes exit fees of £65). The overall cost for comparison is 3.23% APRC representative.

0344 346 3672

or

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Scheme ID 16751
Initial rate ? 1.01% then 3.59% (variable)
Monthly repayments ? £ 1,132
Type/Duration ? Variable
Scheme fees ? £1,499
Cost comparison ? £28,657

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 2% until 30-09-22, 1% until 30-09-23

Other info

Exit fees £0
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 3 months at 1.01%, and then on a variable rate for 22 years and 9 months at 3.59%. This would require 27 payments of £1,131.57 and 273 payments of £1,479.43. The total amount payable would be £435,936 made up of the loan amount plus interest (£134,437) and fees (£1,499 which includes exit fees of £0). The overall cost for comparison is 3.18% APRC representative.

0344 346 3672

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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 1,500 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 or face to face. 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 home can be cheaper than to move home entirely.


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 switch to a new deal with a new lender, that lender has to underwrite your application and you have to go through 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 underwriting or conveyancing involved.

Average Remortgage Fees and Costs

Lender's Product Fee Valuation Fees Legal Fees Booking Fees
£0 - £2,000* £0 - £1,500* £0 - £500 (Plus VAT)* £99 - £250*

What our customers say

John Charcol

John Charcol0330 057 5173£

Cutlers Exchange, 123 HoundsditchLondonEC3A 7BU

Excellent

90%

1944 Total reviews

4.85 Average rating

  • 5

    John @John Charcoal couldn’t have been better. Highly professional, quick response rate, accurate and timely advice. Very happy all round.

    Posted
  • 5

    Absolutely brilliant. It has been a very long road to finally owning my own home but Randeep has been there all along and just at the end of the phone. The mortgage process was very slick and they found me solicitors and a company who sorted out all my utilities too. Couldn’t recommend them more!

    Posted
  • 5

    Chris L at John Charcol recently helped us as first-time Homebuyers. Not only did Chris find us a brilliant deal that enabled us to find our dream home, he was also very friendly, knowledgeable & helpful throughout the entire process - perfect if like us you've not done this before! 10/10 would recommend Chris.

    Posted
  • 5

    Scott Barron provided an amazing service for a few key reasons. Firstly, as a Kenyan resident (ex UK), he found a product for me. This wasn't easy to find and certainly took time to get approved. Scott was constantly in touch, updating me all the time and pushing the lender for confirmation regularly. Felt like he was really taking care of my interests. I'm very grateful to Scott and the team at Charcol.

    Posted
  • 5

    I have just done my second mortgage application with Scott Barron and as usual his service was first class. He has helped me outside of his normal working hours and his determination to get the best for me was faultless again. I will always use Scott for my mortgage needs. Toni was also excellent and communicated throughout professionally and made the process simple for me. Can’t recommend highly enough.

    Posted
  • 5

    I would highly recommend John Charcol. Emily and Andy Cairns were brilliant! Emily was always available to explain and assist with what was not an easy situation and I am happy to have exchanged and completed on my new house. Many thanks to both of them

    Posted
  • 5

    Scott Barron and Chantelle Parker were extremely helpful and communicative throughout the process. They helped me find solutions to my slightly complex mortgage situation. I would refer family and friends to Scott and Chantelle.

    Posted
  • 5

    Excellent service and support. This was a somewhat complicated re-mortgage, but we were supported at all times and the process was very smooth and successful.

    Posted
  • 5

    Ryan Guy at John Charcol helped me out recently and was absolutely fantastic. He diligently contacted about 40 mortgage providers and gave me good, clear, helpful advice. He regularly called and emailed me with updates. Top bloke and top service

    Posted
  • 5

    We had the pleasure of using John Charcol for the purchase of our first home. They made everything so simple for us. From sourcing our mortgage to finally getting us over the line on completion Day. Norbert and Samantha worked tirelessly. They chased our solicitors at every opportunity and kept us up to date on a daily basis. If one of them wasn’t in, they handed over to a colleague to make sure there was continuity at all times for us. I would definitely recommend John Charcol and I would certainly not go anywhere else myself.

    Posted

Remortgages FAQs

How Long Does Remortgaging Your Home Take?

Remortgaging takes about 4 – 6 weeks on average. It can take slightly less or slightly more.

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 other 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.

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.

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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.

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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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