House Professionals


-- Channels --
Applying for a mortgage
Best remortgages
Mortgage calculators
Mortgage types


Home buyers guide: Remortgage and safe money

A remortgage is just like taking out a normal loan, with one main difference. You are raising money to pay off the old mortgage - at a better rate, for greater flexibility or for a specific purpose. You don't have to change lenders, but many do.

Benefits include:

Saving money - by reducing your monthly outgoings. Speak to an adviser now!
Reducing the loan - being able to overpay without redemption penalties.
Releasing equity - to make improvements, take a holiday of a lifetime or buy a second home.
Switching to a more competitive lender or product - for example, if your current rate is too high or you have concerns over an endowment mortgage.
Greater flexibility - by switching to a scheme which allows you to underpay, overpay and have the means to release equity.

Costs and penalties

You cannot use the original survey - so you will be charged for a new one.
Budget for legal and administration fees - although they should not be a high as your original loan. Many lenders now offer deals which refund these costs on completion- provided you use their recommended surveyors and solicitors.
Beware of redemption charges on your existing mortgage if you are still within an introductory offer period with a fixed, discounted or capped rate of interest.
Some loans also have an overhang period after the introductory time.
Weigh up the savings against any costs and penalties. It can sometimes be worth paying these for the benefit of the new loan.


It takes less time because you're not buying a home - around six weeks.
If you need to act quickly, you may find a fast track service to complete in a week.
Try and avoid two sets of interest charges. If you are remortgaging with a lender who charges interest to the end of the month, you should remortgage on the first of the month.

Useful links
Selling your home
First time buyers
Property news



Site map | Privacy policy | Terms of Use

© 2002-2016