Help and guides for remortgaging

Interest rates can move up and down regularly so you may find that your current deal is no longer as competitive as it was when you initially took it out, so finding a new mortgage deal could help save some money on your monthly payments.

Usually people wait until the end of their current deal before remortgaging, but this doesn't have to be the case. You can remortgage during the term of your current deal if this makes financial sense. However, you must bear in mind that remortgaging isn't a free process; your current lender may charge an exit fee, as well as an early repayment charge if you decide to leave early, and you're likely to incur costs when setting up your new deal. So, as always it's really important to do all the maths before making a decision.

For some people, remortgaging is a method used to free up some equity in their property to help pay for things like home improvements. Rather than packing up and moving to a bigger house, lots of people in the UK add space and value to their current homes with extensions and refurbishments, so remortgaging can release some cash to help pay for these.

Some people free up money to assist with paying off debts, however you should always think carefully about securing other debts against your home as your home could be repossessed if you do not keep up repayments on your mortgage.

You can usually borrow additional money when you remortgage, however you need to make sure you can afford your new monthly payments before committing to this. If you do decide to do this, we may lend up to 90% of the value of your property (providing you already have some equity in it), so take a look at our current deals to see what's on offer.

It's not unusual for people's income and outgoings to change, so if this applies to you, you may find you want to review your mortgage to accommodate this. For example, you may have had a pay rise or inherited some money and therefore want to reduce your loan and take out a cheaper product. Perhaps you need some flexibility which your current mortgage doesn't allow, for example the ability to take payment holidays or to make overpayments. If this is the case then read on to see how our Everyday or Flexible range can help you.

Hopefully you're now a little clearer on why remortgaging could apply to you and understand that this is still as much of a financial commitment as when you took out your initial loan. To help work out your finances and the options available to you, we have some really handy calculators and tools you can use.

Our affordability calculator will help you suss out what you can afford if you're considering additional borrowing, and our find a mortgage tool will show you the deals we have on offer at the moment, including how much they will cost you in monthly payments.

With a fixed rate mortgage your monthly payments would be the same throughout the term of the deal (which is typically 2, 3 or 5 years) so you have the security of knowing what you'll be paying each month.

Key features of our everyday range include:

• Some of our lowest priced mortgage rates
• You can make overpayments of up to 10%
• You can apply for a payment holiday, subject to your terms and conditions

Mortgages from our flexible range provide you with more flexibility than those from the everyday range, key features include:

• You can make unlimited charge-free overpayments meaning you can pay off your mortgage quicker
• You can make underpayments or borrow back the money you've overpaid (subject to our agreement)
• You can apply for payment holidays subject to your terms and conditions

Our Flexible range is currently not available to new customers.

Product fee

With some remortgage products there may be a fee to pay as part of the deal. This is often referred to as a product fee and it forms part of the terms and conditions of your mortgage deal. You have the option to pay the product fee at point of application or add it to the mortgage. If the fee is added to the mortgage you will incur interest charges on this fee at the prevailing interest rate for the term of the mortgage until it has been paid. The fee will be refunded if the mortgage does not complete.

Product fees may vary depending on the product, and some products don’t carry a fee. These are referred to as 'fee free' or 'fee saver' products, however they tend to come with higher rates. You must bear in mind if you are switching lenders, your current lender may charge an exit fee, as well as an Early Repayment Charge if you decide to leave early, and you're likely to incur costs when setting up your new deal.

Application fee

An application fee is typically a non-refundable fee that may be charged when you take out a mortgage. Full details of any fees will be outlined within your Mortgage Illustration.

When you buy a home, you will need to pay a solicitor or qualified conveyancer for the legal work required. All of our remortgage products come with free standard legal work.

If you need help finding a solicitor, we’ll be happy to recommend one from our panel.

Our remortgage deals can come with additional benefits, such as free basic valuation and standard legal costs included. Please be aware that a physical valuation may not take place on all cases.

Once your ready to apply for your new mortgage, you should get a few simple things to hand to speed up your application:

• Payslips
  usually three recent monthly payslips are needed to verify your income
• P60
  In addition to payslips, your latest P60 may also be used to verify your income
• ID
  ID to confirm your identity and address may be required. Passports, bank statements and utility bills are good examples.
• Mortgage statement
  Your last mortgage statement may be needed to help prove that your mortgage payments are being made.

Our remortgage deals can come with additional benefits, such as free basic valuation and standard legal costs included (on properties worth under £3m).

When you take out a mortgage, there may be an application fee to pay to cover the cost of arranging your deal. Full details of any fees will be outlined within your Mortgage Illustration.

You must bear in mind if you are switching lenders, your current lender may charge an exit fee, as well as an early repayment charge if you decide to leave early, and you're likely to incur costs when setting up your new deal.

We offer a wide range of fixed, tracker and freedom to fix mortgages. To see what products we currently have available that could suit your needs, simply use our mortgage finder, or give us a call.