According to recent mortgage statistics, almost 30% of gross mortgage advances in 2022 were given to those remortgaging. The main reason for remortgaging is to save money. If you’re on a fixed rate mortgage, once the initial rate ends, you will move onto your lender’s Standard Variable Rate (SVR), which will usually be more expensive than your current rate. Switching to a new mortgage deal at this point can help lower your mortgage costs.
Alternately, you might want to remortgage to borrow money. As you pay off your mortgage, the equity you have in your property increases, and this equity can be released via a remortgage. The cash that is released can be used, for example, to fund home improvements or to consolidate existing borrowing.
The fees will depend on the circumstances of your remortgage. Common remortgaging fees include:
When deciding whether to remortgage, you should work out all the additional fees you’ll need to pay and make sure they won’t outweigh the savings you’ll make by remortgaging.
You will need to compare mortgages to work out the best rate available to you. What type of remortgage deal you get will depend on other factors, such as:
How much equity you have in your home
Whether your income has changed
Whether you are trying to borrow more or downsize
The more equity you have in your home, the more security you will be putting forward. This means you can expect a better interest rate because you are seen as less of a risk in terms of paying back the mortgage. You need to compare interest rates, which you can do using the APR. Mortgage rates have been at historic lows, so it’s worth looking at comparing remortgage rates.
Claire Flynn, Senior Content Editor - Mortgages
If your current deal is due to expire within the next six months, you should start thinking about remortgaging now in order to lock in a new rate. Speak to a mortgage broker who can look at the whole of the market to find the best deal for you and your circumstances. ”
"Uswitch has saved me the most money on my mortgage. In just the last two years alone I’ve saved around £1,800 just by choosing a better mortgage provider. My mortgage used to be with Halifax at £550 per month, but I switched to Metro Bank for £499 a month, saving me £51."
Saurabh Kapoor, Birmingham
Find out more about remortgages in our expert guides. We cover information on buying and selling property, mortgage eligibility, costs, and more.
A buy to let (or BTL) mortgage in the UK allows you to borrow money to purchase a property that you can rent out. You can find and compare buy to let mortgages with Uswitch.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Last updated: 16th November 2022