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.

Who May Want to Remortgage?

You may want to remortgage 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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Compare the Best Remortgage Rates

Use our free remortgage comparison tool to find the best remortgage deals and rates currently on the market.

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We suggest you use our ‘True Cost Comparison’ filter. This allows you to accurately understand how different mortgages compare by ordering results based on the total cost over a ‘deal period’, such as a two, or five-year fixed rate mortgage.

Some low interest rate deals might seem attractive, but if fees are higher they might not be the best value for you. When comparing mortgage deals our true cost comparison factors the lender fees over the length of the deal as well as your monthly mortgage payments.

For example, if your repayments are £2,000 per month on a two-year fixed-rate mortgage, plus £500 in lender fees, the total cost of the deal is £48,500.

We've found 809 remortgage deals that match your search

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Scheme ID 15388
Initial rate 1.09% then 3.59% (variable) ?
Monthly repayments £ 1,143 ?
Type/Duration Variable ?
Scheme fees £1,519 ?
Cost comparison £28,948 ?

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 (2% in year 1, 1% 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 1.09%, and then on a variable rate for 23 years at 3.59%. This would require 24 payments of £1,142.88 and 276 payments of £1,485.85. The total amount payable would be £439,108 made up of the loan amount plus interest (£137,589) and fees (£1,584 which includes exit fees of £65). The overall cost for comparison is 3.25% APRC representative.

0344 346 3672 or Enquire now

Scheme ID 15380
Initial rate 1.09% then 3.59% (variable) ?
Monthly repayments £ 1,143 ?
Type/Duration Variable ?
Scheme fees £1,519 ?
Cost comparison £28,448 ?

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 (2% in year 1, 1% 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 1.09%, and then on a variable rate for 23 years at 3.59%. This would require 24 payments of £1,142.88 and 276 payments of £1,485.85. The total amount payable would be £438,608 made up of the loan amount plus interest (£137,089) and fees (£1,584 which includes exit fees of £65). The overall cost for comparison is 3.25% APRC representative.

0344 346 3672 or Enquire now

Scheme ID 8318
Initial rate 1.13% then 3.59% (variable) ?
Monthly repayments £ 1,148 ?
Type/Duration Variable ?
Scheme fees £1,499 ?
Cost comparison £29,060 ?

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 30-09-21, 1% until 30-09-22

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 1.13%, and then on a variable rate for 22 years and 10 months at 3.59%. This would require 26 payments of £1,148.36 and 274 payments of £1,483.89. The total amount payable would be £437,942 made up of the loan amount plus interest (£136,443) and fees (£1,499 which includes exit fees of £0). The overall cost for comparison is 3.22% APRC representative.

0344 346 3672 or Enquire now

Scheme ID 8319
Initial rate 1.13% then 3.59% (variable) ?
Monthly repayments £ 1,148 ?
Type/Duration Variable ?
Scheme fees £1,499 ?
Cost comparison £29,060 ?

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 30-09-21, 1% until 30-09-22

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 1.13%, and then on a variable rate for 22 years and 10 months at 3.59%. This would require 26 payments of £1,148.36 and 274 payments of £1,483.89. The total amount payable would be £437,942 made up of the loan amount plus interest (£136,443) and fees (£1,499 which includes exit fees of £0). The overall cost for comparison is 3.22% APRC representative.

0344 346 3672 or Enquire now

Scheme ID 19397
Initial rate 1.14% then 5.29% (variable) ?
Monthly repayments £ 1,150 ?
Type/Duration Variable ?
Scheme fees £2,034 ?
Cost comparison £29,628 ?

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 £199, plus (3% in year 1, 2% until 31-10-22) with a fee free allowance of 10%

Other info

Exit fees £199
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 1.14%, then moving onto variable rate for 3 years at 4.04%, and then on a variable rate for 19 years and 9 months at 5.29%. This would require 27 payments of £1,149.73, followed by 36 payments of £1,549.39, and 237 payments of £1,720.75. The total amount payable would be £496,872 made up of the loan amount plus interest (£194,838) and fees (£2,233 which includes exit fees of £199). The overall cost for comparison is 4.33% APRC representative.

0344 346 3672 or Enquire now

Scheme ID 3525
Initial rate 1.14% then 3.54% (variable) ?
Monthly repayments £ 1,150 ?
Type/Duration Variable ?
Scheme fees £1,016 ?
Cost comparison £28,610 ?

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 30-09-21, 1% until 30-09-22 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 1.14%, and then on a variable rate for 22 years and 10 months at 3.54%. This would require 26 payments of £1,149.73 and 274 payments of £1,476.71. The total amount payable would be £435,528 made up of the loan amount plus interest (£134,512) and fees (£1,016 which includes exit fees of £0). The overall cost for comparison is 3.17% APRC representative.

0344 346 3672 or Enquire now

Scheme ID 6978
Initial rate 1.15% then 3.59% (variable) ?
Monthly repayments £ 1,151 ?
Type/Duration Variable ?
Scheme fees £1,025 ?
Cost comparison £28,652 ?

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 30-09-21, 1% until 30-09-22

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 1.15%, and then on a variable rate for 22 years and 10 months at 3.59%. This would require 26 payments of £1,151.10 and 274 payments of £1,484.18. The total amount payable would be £437,619 made up of the loan amount plus interest (£136,594) and fees (£1,025 which includes exit fees of £0). The overall cost for comparison is 3.21% APRC representative.

0344 346 3672 or Enquire now

Scheme ID 19392
Initial rate 1.15% then 5.29% (variable) ?
Monthly repayments £ 1,151 ?
Type/Duration Variable ?
Scheme fees £1,034 ?
Cost comparison £28,661 ?

Fees & Charges

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

Flexibility

Max LTV 65%
Overpayments allowed? Yes
Early Repayment charges £199, plus (3% in year 1, 2% until 31-10-22) with a fee free allowance of 10%

Other info

Exit fees £199
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 1.15%, then moving onto variable rate for 3 years at 4.04%, and then on a variable rate for 19 years and 9 months at 5.29%. This would require 27 payments of £1,151.10, followed by 36 payments of £1,549.55, and 237 payments of £1,720.93. The total amount payable would be £495,957 made up of the loan amount plus interest (£194,923) and fees (£1,233 which includes exit fees of £199). The overall cost for comparison is 4.30% APRC representative.

0344 346 3672 or Enquire now

Scheme ID 19724
Initial rate 1.16% then 4.09% (variable) ?
Monthly repayments £ 1,152 ?
Type/Duration Variable ?
Scheme fees £1,525 ?
Cost comparison £29,184 ?

Fees & Charges

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

Flexibility

Max LTV 65%
Overpayments allowed? Yes
Early Repayment charges £50, plus 1.5% until 01-11-22

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 1.16%, then moving onto variable rate for 4 years and 9 months at 4.34%, and then on a variable rate for 18 years at 4.09%. This would require 27 payments of £1,152.48, followed by 57 payments of £1,595.01, and 216 payments of £1,563.87. The total amount payable would be £461,353 made up of the loan amount plus interest (£159,828) and fees (£1,525 which includes exit fees of £0). The overall cost for comparison is 3.71% APRC representative.

0344 346 3672 or Enquire now

Scheme ID 19725
Initial rate 1.16% then 4.09% (variable) ?
Monthly repayments £ 1,152 ?
Type/Duration Variable ?
Scheme fees £1,525 ?
Cost comparison £29,184 ?

Fees & Charges

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

Flexibility

Max LTV 65%
Overpayments allowed? Yes
Early Repayment charges £50, plus 1.5% until 01-11-22

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 1.16%, then moving onto variable rate for 4 years and 9 months at 4.34%, and then on a variable rate for 18 years at 4.09%. This would require 27 payments of £1,152.48, followed by 57 payments of £1,595.01, and 216 payments of £1,563.87. The total amount payable would be £461,353 made up of the loan amount plus interest (£159,828) and fees (£1,525 which includes exit fees of £0). The overall cost for comparison is 3.71% APRC representative.

0344 346 3672 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 buying 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 remortgage 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 for a remortgage – 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 of Remortgaging

You Can Save MoneyWhen you come off your introductory deal you’ll go onto your lender’s SVR, which will be higher than your original rate. Remortgaging onto a new deal can help you make significant savings.
It Can Help You Avoid Moving HomeIt can be cheaper and more convenient to take out a remortgage and adapt or add an extension to your existing home, than to move home entirely.
You Can Raise MoneyRemortgaging 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 CircumstancesIf 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 with Remortgaging

You May End Up Paying More Overall When You Consolidate DebtsRemortgaging 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 May Face ERCs (Early Repayment Charges) if You Remortgage Before Your Introductory Deal EndsIt’s extremely common to remortgage when your introductory deal ends, so that you can avoid being transferred onto your lender’s SVR. However, if you try to remortgage too early then you may face ERCs which can make remortgaging expensive.
Remortgaging Can Take Longer than a Product Transfer with a Further AdvanceWhen you remortgage, the lender underwrites your application and you go through some conveyancing – although not as much 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.

What Are the Average Costs of Remortgaging?

Lender's Product FeeValuation FeesLegal FeesBooking Fees
£0 - £2,000*£0 - £1,500*£0 - £500 (Plus VAT)*£99 - £250*

What our customers say

John Charcol

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Cutlers Exchange, 123 Houndsditch London EC3A 7BU

Excellent

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1806 Total reviews

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  • 5

    Steve Prior always does a thorough and efficient job of finding the best deals and then executing them with the minimum of fuss!! Delighted with the Buy2Let renewal which has saved me loads per month on the previous deal.

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  • 5

    I couldn't have asked for any more given the circumstances. I started my remortgage process just before lockdown. Scott found another suitable product quickly when the one I appled for got pulled, the office also helped by posting solicitors docs to me when I couldn't print as working from home. Overall very easy to deal with, highly recommended.

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    Good options offered aligned to requirements; courteous and proactive service. Regular updates and preparedness to take responsibility to make things happen. Completion achieved seamlessly and efficiently. Overall excellent quality of service - recommended.

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    Delighted with the support provided by Charlotte and Maisie for John Charcol. They identified a really competitive product which fulfilled our requirements and managed the process to a successful conclusion. I would strongly recommend John Charcol based on our experience.

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    We've used John Charcol for several years as we know we're going to receive great advice delivered in a timely fashion. Sener always goes above and beyond to ensure we get the best deal possible. Really couldn't fault the service. Thank you.

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    Mark Nicholls is absolutely top drawer. Have worked with him on a couple of mortgage/re-mortgages and have been always very pleased with his service, professionalism and client focus.

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    Excellent advice throughout and very reliable. It was a long journey to getting our flat but I always felt very satisfied with the advice given and the speed of response. I always felt Bruce went the extra mile and given it was a 2 year process and rates changed, I knew Bruce was constantly getting the best rate for us. There is nothing better than being able to trust your adviser especially with lots of other variables in the process and I can’t thank him and John Charcol enough for the excellent advice and treatment throughout the process.

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Remortgage FAQs

How Long Does It Take to Remortgage Your Home?

The average time it takes to remortgage is about 4 – 6 weeks. It can take slightly less or slightly more.

Can You Remortgage Early?

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

You can start arranging your remortgage 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 You Remortgage to Buy Another House?

You can remortgage 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.

Can You Remortgage with Bad Credit?

It is possible to remortgage with bad credit but your choice of lenders will be limited, depending on the extent of the bad credit and how recent it was.

Can You Remortgage to Pay Off Debt?

You can remortgage to pay off your debt in the sense that it can allow you to consolidate multiple other debts – e.g. car loan, credit card balances.

To consolidate your debts, you can remortgage for an amount that’s higher than the amount remaining on your current mortgage. This will enable you to release some equity that you can 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, remortgaging to consolidate debts may be suitable 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?

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

One major benefit of remortgaging to fund home improvements 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.

Do I Need a Solicitor to Remortgage?

You’ll need a solicitor when you remortgage 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. A lot of people choose to begin the remortgage process up to 6 months before their introductory deal ends because another lender’s deal will almost certainly be cheaper than going onto the SVR.

When you remortgage onto a new deal, you’ll be put on a new introductory rate for a certain period.

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 remortgage 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.

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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.

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