A remortgage means that you switch to a new mortgage with a new lender, or to a different mortgage with the same provider.
If your current mortgage deal has ended, or is ending soon, you could save money by remortgaging rather than paying your lender’s standard variable rate.
You can also remortgage if you’re still in your current deal or if you’re moving house but you’ll need to consider early repayment charges, which can be expensive.
While saving money is the main reason to remortgage, it might be right for you if you want the security of a fixed-rate, if you need to borrow more, or if you need a different type of mortgage, such as one with greater flexibility.
This will depend on your individual circumstances, but it only takes a minute to use the MortgageGym eligibility calculator to find mortgages you’re eligible for.
Your eligibility to remortgage depends on:
People are doing an ever-increasing amount online, from shopping to banking, e-learning to gaming. Now they can remortgage their home online as it’s quicker, more convenient, and fits their busy lives
Lord Henley, Parliamentary under-secretary of state at the Department for Business, Energy and Industrial Strategy
If you decide to remortgage, you’ll have to pay these fees during the process:
Repayment mortgages are one of the two types of mortgages available in the UK. With a repayment mortgage, you pay off the interest and borrowed capital each month for a fixed term.
The other type of mortgage is interest only - where 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 - a variety of repayment mortgages - deduct the amount of money in your savings account from the amount you pay interest on, so your monthly repayments are lower.
Fixed rate mortgages set the interest rate you have to pay for a certain time period, which can be useful for those wanting to budget.
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
For online mortgage comparison and advice Gocompare.com introduces customers to MortgageGym Limited which is an Appointed Representative of Primis Mortgage Network, a trading name of First Complete Limited which is authorised and regulated by the Financial Conduct Authority. MortgageGym partner brokers will charge a fee, which is payable when your mortgage application is submitted. The fee will depend on your circumstances and will be discussed with you at the earliest opportunity. Gocompare.com holds a controlling investment in MortgageGym Limited.
LMS Monthly Remortgage Snapshot, June 2019.