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Remortgage guide
Remortgage guide: How to remortgage

How to remortgage

Remortgaging can be difficult with a variety of options and costs - so making a decision is not so easy.

The three main remortgaging options are:


Remortgage with a new lender

Remortgage with current lender

Do nothing


  • Remortgage with current lender

    When fixed rates come to an end or if you wish to free up some equity in your home it could be possible to remortgage without switching lender.

    Many lenders offer special rates and deals for existing customers remortgaging – whether it is in order to cut monthly repayments or raise capital.

    The advantage of sticking with your current lender is you can keep financial relationships going that you know and trust. Also some of the expenses and inconvenience of switching mortgage lenders can be avoided.

    However, by not searching the whole market for a remortgage you may not have the best deal available. Many lenders also now pay for most legal and valuation fees so switching lender is less costly.


  • Remortgage with a new lender

    There are a number of routes open to homeowners looking to remortgage.

    You can either search through the market – under your own steam – checking mortgage best buy tables and lenders' websites or choose to use a mortgage broker.

    When choosing a new lender it is worth keeping in mind all the charges that could exist – and how they might cancel out any savings.

    Legal and valuation fees are often paid for by the new lender, and remember there are no contracts to prepare and there is no stamp duty to pay, as with making a purchase.

    When using a mortgage broker or an independent financial advisor it is important to know they specialise in the type of remortgage that is right for you.

    Many people opt for a broker recommended by friends, but it is important to make sure they specialise in mortgages for homeowners in your circumstances.

    It is also important to find out how the broker will charge you. Some mortgage brokers charge upfront fees, others take commission from a lender when securing a deal and others may take a combination of the two.


  • Do nothing

    Homeowners could opt to stick with a mortgage lender after the end of a fixed-rate deal for a number of reasons, despite the mortgage switching to the higher standard variable rate (SVR).

    While monthly bills will rise on a lender's SVR, not remortgaging could be an option if your existing lender has early redemption charges in place and a new bank or building society's arrangement fees exist that would cancel out the savings of a new lower rate mortgage.

    However, some homeowners still choose to remortgage despite the increased overall cost as a way of lowering monthly repayments and paying more in the long term.

    For homeowners wishing to raise cash – for home improvements or other major outlays – other routes besides remortgaging include taking the long-term view and saving or choosing a personal loan.

    If opting to borrow it is worth comparing the rates on a mortgage and a loan. Although a personal loan is usually dearer, costs and inconvenience connected with remortgaging could put some off.


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