Free PDF guide to remortgaging
Looking to change your current mortgage? This 64-page guide has tips on when you should and shouldn't remortgage, different mortgage types and how to get the top deals. Our free, detailed PDF guide takes you through it all, to home in on the best MoneySaving mortgage for you.
Need reminding of the difference between a fixed and a variable mortgage?
Not sure what the definition of equity is?
Want to know how to boost your chances of being approved for a mortgage?
This guide explains it all, and will give you more certainty when it comes to remortgaging.
Who's the guide for?
This guide is for anyone who already has a mortgage on their home. A remortgage can be for many reasons – maybe you're coming to the end of your current deal, or your deal's no longer right for you. Or maybe you want to try to cut costs, or consolidate debts?
If you're a first-time buyer, see the First-Time Buyers' Mortgage Guide instead.
What's in the guide?
If you want a sneak peek before getting the whole thing, here's a quick breakdown and intro for each section of the guide. But before you start, here's our big message:
"If your mortgage is your single biggest expenditure, cutting its cost is likely to be your biggest single money saver."
The biggest reason is to save yourself some serious money, but it's not the only one. And remember, it's not about the best deal out there – it's about the best deal for you. Our Remortgage Guide covers the full list of reasons why you might want to remortgage, which includes:
- Saving money, especially if you're on your lender's standard variable rate (SVR).
- Your mortgage doesn't fit any more. Maybe you want a mortgage which lets you overpay by more, or sometimes miss payments.
- You want to borrow more but your current lender won't let you.
If you've decided to remortgage, you'll need to make sure you're a good candidate. Our Remortgage Guide, talks you through the importance of having decent equity, a good credit score and being able to prove you can afford repayments if mortgage rates shot up.
While remortgaging can save you serious money, it's not the right option for everyone – depending on your situation it may not even be possible. Our Remortgage Guide lists the reasons it might not be the best time to remortgage, which includes:
- When you're already on a great deal (quite possible as rates have been low for a while).
- If remortgaging means paying expensive early repayment charges.
- Where you own less than 10% of your property, meaning the deals available are fewer and more expensive.
- If your circumstances have changed (eg, your income has reduced).
- When suffering from a bad credit score (see our Improve Your Credit Score guide).
Before you start looking at remortgages, there are THREE checks you need to make on your current mortgage. Our Remortgage Guide talks through these checks in detail, but in brief you need to ask yourself:
- Will you be paying an early repayment charge? These can cost £1,000s and are charged if you leave an introductory deal (such a five-year fix) early.
- Will you be paying an exit fee? Expect to pay between £50 and £200.
- How much do you owe to your current lender? You need the exact figures.
This chapter also discusses working out how much lenders are likely to let you borrow, how much equity you'll need in your home to get the top deals, and tips on how to lower your loan-to-value. See How Much Can I Borrow? guide for a quicker explainer on why a smaller LTV means cheaper mortgage rates.
Getting any type of mortgage is tough in these days, fuelled by the 2008 financial crash and more recently the coronavirus pandemic. You can't rest on your laurels just because you've managed to get a mortgage from a lender before. Our Remortgage Guide details what you can do to improve your attractiveness to lenders, which includes:
- Getting your credit score in good shape, by getting on the electoral roll, financially 'delinking' from exes, not missing due payments, etc. Also see our Improve Your Credit Score guide.
- Proving your affordability, by gathering proof of your income and doing a money makeover (want to know how to do a money makeover?).
- Trying our other top tips, such as putting down an extra £100 on top of your current equity, closing unused credit cards and staying out of your overdraft.
The self-employed have always had it tougher when it comes to getting a mortgage, and this has only become more so since coronavirus. Our Remortgage Guide tells you what to expect if you're applying for a mortgage, including how many tax returns and business accounts you'll be required to provide.
Once you're confident that a lender will lend to you, you'll need to consider what kind of mortgage you actually want. Our full guide explains exactly what a mortgage is (if you've forgotten), how it's 'secured' on your home, and lays out the pros and cons of different mortgage types, including:
- Repayment and interest-only mortgages.
- Fixed-rate and variable-rate mortgages
- Offset and current account mortgages.
- Portable mortgages.
If you're moving house, it's not a remortgage you need – though this doesn't automatically mean you need a new mortgage either. In the first instance, you might be able to take your current mortgage with you if it's 'portable'. If it's not – and you don't have to port even if you're able – you'll need to apply for a new mortgage instead, just like you would if you were a first-time buyer.
Our Remortgage Guide explains these options in more detail. Also see our Porting a Mortgage guide.
Doing your sums is really important when remortgaging, as there are likely to be fees for the new mortgage and maybe even some for leaving your current mortgage. Our Remortgage Guide runs through which fees you should expect, but in brief you'll likely pay:
- Mortgage fee. Charged by the lender for taking out the mortgage itself, which can set you back around £1,000.
- Booking fee. Lenders sometimes charge a separate fee to reserve the deal. If it does, it'll cost between £100 and £200.
The good news is that valuation fees and legal fees are usually free with a remortgage. However it's still important that you compare the cost of your current mortgage to your potential new one. Our Compare Two Mortgages calculator helps you do this.
First up, ask your current lender what it's offering, so you've got something to benchmark against.
Once you've done that (and if what your current lender is offering isn't great), you've got two main options when applying for a remortgage deal, either doing it solo by going direct to a lender, or applying via a broker.
Our full Remortgage Guide sets out in detail how both options work, though using a broker is often the best bet as they can whittle down the top deals quickly, often have special deals only available via a broker and also know what type of mortgages would best suit your personal circumstances. This chapter includes info on:
- How different brokers work and which deals they search.
- Which brokers are free for you to use and what questions to ask them.
- How to compare the widest range of mortgages if going solo.
To compensate for lower profits on headline mortgage rates, some lenders have upped prices on associated insurance products. This chapter tells you the insurance policies you may face, the hard sell on, what you should expect to pay, and how to find the cheapest products. The kind of insurance to consider includes:
- Mortgage payment protection insurance
- Buildings and contents insurance
- Life cover
This chapter covers a few commonly asked questions, like: 'What is the mortgage APR for?' or 'Can I let out my home?'
If you're ready to hunt for a top remortgage deal, head straight for our Mortgage Best Buys tool, where you can compare the top rates and then click through to a lender or broker to get your deal.
How come it's free?
The guide is sponsored by fees-free mortgage broker London & Country. Don't worry, it's had nothing to do with the content, which purely depends on our view of the best way to save money while remortgaging. The guide is written with complete editorial independence and is purely focused on finding you the best deal, and this is enshrined in the contract.
Having said that, L&C isn't stupid. We've been independently listing it as one of the top brokers for several years now (see the Cheap Mortgage Finding guide), so it had a pretty good idea it wouldn't come out too badly.
L&C sponsors the guide because it gets a one-time chance to include its own letter promoting its service when it mails out the guide. Just to assure you, you won't be sent any follow-up advertising, marketing or any of that malarkey.
In the trade, this is known as a payment for 'lead generation'. In this case, that means L&C pays for the publishing, printing, posting and a small fee to help this site. See more about this site's ethical financial stance.
Looking for more mortgage help?
We've got lots of other helpful guides and tools:
Clever ways to calculate your finances