What is remortgaging?

What is remortgaging?


Your mortgage is probably your biggest expenditure and if you’re the type of person that shops around for the best deals on holidays and cars, then you may be missing a trick by not using those skills to save money on your mortgage payments.

“How do I save money on my mortgage?” we hear you ask.

Remortgaging may be the answer.

Remortgaging is where you take out a new mortgage on your property to get a better deal without selling it.

If you’re on a fixed rate mortgage, once the term of that rate is up, which is usually 2-5 years, you’ll then automatically revert to your lender’s Standard Variable Rate (SVR), whatever that may be. Typically, this means you’ll be forking out more money than you need to per month as your interest rate has increased.

Remortgaging can be a very simple process and could save you hundreds of pounds per month.

It’s always worth using a mortgage broker (cough, Key Solutions, cough) as they will be able to search the market to compare the rates and costs. You won’t even have to lift a finger.

They will then weigh up your options and advise you of the most suitable and affordable mortgage product.

There’s two options available when reviewing your mortgage… Let’s break it down.

  • Product transfer or rate switch

This is when we advise you to stay with your current lender, but just transfer your mortgage from their SVR to a more preferential rate with them. Don’t worry, we complete all the paperwork for you!

  • Remortgaging

This happens when another lender is usually offering a more suitable rate than your current mortgage lender that’s more suited to your personal circumstances. The outstanding balance of your mortgage is moved to a new lender and a new rate starts.

Both of these options can be completed before your revised payments even kick in.

How do you find the best deal?

Whether your best option is staying with your current lender or switching to a new one we’ll provide you with unbiased, honest advice. And you won’t have to pay a penny for it.

If you’re already a client of ours, our Client Loyalty Team will get in touch with you a couple of months before your rate is due to expire to discuss your options.*

If your contact details have changed, please do give us a call and we can update them on our system.

If you’ve never worked with us before, then where have you been?! We’d love the opportunity to help you, so have a read through our remortgaging page to find out more or just give us a bell on Freephone 0800 138 5856.

*Contact will be made subject to you have previously provided permission for us to do so.