Re-mortgage Guide

Short guide to re-mortgaging. What this means and what is involved.

Re-mortgage Guide

Re-mortgaging means changing your current loan.

Reasons to re-mortgage

  • Reduce your monthly payments by changing to a different rate 

  • Release equity in your property (eg. To provide funds for building work) 

  • Change to a fixed-rate to assist with your monthly budgeting

Where to start

  • Speak to your current lender to see if they can offer you a better deal. This can be the cheapest option as you may be able to avoid paying for a new valuation or for another local authority search and possibly save on legal fees too.

  • Once you know what your current lender can offer you, look around at other options to see if another lender can improve on the offer. 

  • Ask your current lender if they can match the offer you have found elsewhere. 

  • Remember to ask your current lender about early redemption penalties. You do not want to have a large bill for leaving your mortgage before the agreed date.

What is involved in re-mortgaging?

  • You will need to submit specific paperwork to your new chosen lender. This includes:
    - Proof of your income
    - Information about your expenses and out-goings
    - Proof of your residency, such as a passport or driving licence

  • Your home will require a valuation. For re-mortgaging this can range from a ‘drive by’ valuation to a surveyor visiting your home for a detailed inspection.

  • You will need to appoint a conveyancing solicitor to
    - Undertake a local authority search or to organise search indemnity insurance (a cheaper policy covering anything that might have been discovered in a search).
    - Organise the transfer of debt from one lender to the other.

Costs of re-mortgaging

  • Conveyancing for re-mortgaging is cheaper than when buying or selling a home. Find a conveyancing solicitor who can undertake your re-mortgage in your area: 

  • There is no stamp duty to pay on re-mortgaging. 

  • You may be charged a valuation fee from the surveyor. Find a surveyor in your area who can provide a home valuation survey.

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