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Remortgages

Compare remortgage deals with Mojo Mortgages[1]

remortgages

What does remortgage mean?

A remortgage means that you switch to a new mortgage with a new lender, or to a different mortgage with the same provider.

You’ll probably want to remortgage when you reach the end of a promotional fixed rate or tracker rate deal so that you don’t end up paying your lender’s standard variable rate of interest, which is likely to be more expensive.

Why remortgage?

While saving money is the main reason to remortgage, you could also decide to remortgage if you want:

  • The security of a fixed-rate
  • To pay off a mortgage earlier
  • To borrow more
  • To consolidate other debts
  • A different type of mortgage, such as one with greater flexibility
The average loan size for those remortgaging was £145,950 in July 2021

How to remortgage

To get started, put in a few details about you and your income to find mortgages you’re more likely to be approved for.

The lenders available to you will depend on:

  • Your credit history. There’ll be an affordability check, so view your credit report to check your credit score first
  • The value of your property
  • Whether you’re over 60, retired or self-employed. It might be more difficult for you to get a mortgage if any of these apply

You’ll need to consider additional costs, like legal, administration and property valuation fees.

Talk to a mortgage adviser to get tailored advice. If you’re happy, they can take your application forward with your chosen lender.

Remortgage costs

If you decide to remortgage, you’ll have to pay these fees during the process:

  1. Broker and advice fees

    Some brokers will charge if you choose to take mortgage advice – but fee-free advisers are available [1]

  2. Remortgage fees

    The amount you pay your new lender to set up your remortgage

  3. Property valuation

    What you pay your new lender to evaluate your property’s worth

  4. Early repayment charges

    If you leave before your contract period finishes, your existing lender will charge you a percentage of your current mortgage

  5. Admin fees

    This is what you pay your existing lender for forwarding on your title deeds to your solicitor, but not all lenders charge it

  6. Legal fees

    This is paid to your solicitor to cover the cost of the legal work required to remortgage

Types of mortgage

Most people in the UK have a repayment mortgage, but it’s not the only option when you’re looking to remortgage:

Repayment mortgages 

With a repayment mortgage, you pay off the interest and borrowed amount (capital) each month for a fixed term.

Repayment mortgages will either have a fixed rate, where the monthly repayments are a fixed price for a certain time. Or it’ll be a variable rate, so your monthly repayments may go up and down.

Interest only mortgages

You repay the interest on your mortgage for a fixed term. You’ll be responsible for repaying the borrowed capital at the end of the term.

Offset mortgages

Offset mortgages are quite rare. They work by deducting the amount of money in your savings account from the amount you pay interest on, so your monthly repayments are lower.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

[1]For online mortgage comparison and advice Gocompare.com introduces customers to Mojo Mortgages which is authorised and regulated by the Financial Conduct Authority. Mojo Mortgages is a trading name of Life’s Great Limited. Gocompare.com’s relationship with Life’s Great Limited is limited to that of a business partnership, no common ownership or control exists between us. Please note, we cannot be held responsible for the content of external websites and by using the links stated to access these separate websites you will be subject to the terms of use applying to those sites.

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