Remortgage

What is Remortgaging?

Remortgaging is the process of switching from one mortgage lender to another without moving house, though in some cases a lender may let you switch to one of their other mortgage products for a fee.

One of the most common reasons for doing this is to move to a better interest rate, as the best deals are often introductory offers that only last for five years or fewer. It is also common for people to remortgage to borrow more money or release Equity from their home, as mortgages are often offered at lower interest rates than a loan for the same amount from the same provider.

Additionally, by remortgaging your property you may be able to free yourself from restrictions offered by your current mortgage provider, such as if you want to pay a larger monthly amount but the mortgagee will not let you.

It is not recommended to remortgage a property when there is a small amount left to pay off if Early Repayment Penalties apply, as this would likely cost more than you would save.


Q: Can you remortgage one house to buy an additional property?

A: Yes. Once a house has built up enough equity, some people use this opportunity to put down a deposit on a second house. Having both properties reliant on the same mortgage does however carry the risk of losing both properties if you cannot make repayments.

Q: Can you remortgage with bad credit?

A: A Bad credit history might not completely rule out the possibility of remortgaging a property, but it might limit the number of places willing to take you as a customer and the rates or offers made available to you. Alternatively, remortgaging with your current provider may make payments easier, which can help your credit rating if paid on time.

Q: Can you remortgage a buy to let property?

A: You may be able to, but might find the monthly amount you charge tenants needs to change in line with this new figure to be accepted for the new agreement.

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