What is remortgaging?
Remortgaging is the process of switching a mortgage to a different lender without moving homes. For
many borrowers, it is also the ideal opportunity to review their personal and financial circumstances
and to consider whether their current mortgage and lender is the most suitable for them.
What are common reasons to remortgage?
Your mortgage deal has already come to an end and you have been placed on your lender’s
standard variable rate (SVR)
Your existing deal is nearing its end and you will soon be placed on your lender’s SVR
Reduce monthly repayments and gain extra flexibility on your mortgage term
Borrow more money, possibly for home improvements or to pay off other debts
Release equity from your home
The value of your home has increased substantially
Ensure your mortgage meets your personal and financial needs
To change to a different type of mortgage
What if you want to stay with your current lender?
If you wish to stay with the same lender when your current deal comes to an end, you can simply
complete a product transfer. This means you will be placed on a new product with your existing lender.
Bank of England Base Rate
A rate of interest that is set by the Bank of England. If the base rate
rises and your mortgage has reverted to SVR then your mortgage
payments are likely to increase.
Early repayment charges (ERCs)
Fees you may have to pay if you wish to leave your mortgage at a
specific time, for example, during the period of the initial deal.
Fixed-rate mortgage The initial period of the deal which is usually between one and ten
years where the mortgage interest rate remains the same. As a result,
you can be certain that you will be paying the same amount each
month for your mortgage.
Standard Variable Rate
A mortgage deal will usually revert to this interest rate when the initial
mortgage deal comes to an end. The SVR is decided by the lender and
your payments may increase or decrease depending on interest rate
The period of time that you are tied in to your mortgage deal. If you
want to leave your mortgage deal during this time you will usually have
to pay early repayment charges.
Tracker mortgage A mortgage where the interest rate tracks the Bank of England base
rate or London Interbank Offered Rate (LIBOR), depending on the
Want to discuss your current mortgage?
To find out whether remortgaging is right for you and your circumstances, you can speak to me
today. I will assist you in reviewing your current mortgage and finding the best deal for you.