Can I Remortgage My House

Remortgaging is the process of taking out a new mortgage to replace your current one, often to get a better deal or access some of the value tied up in your property. It does not mean moving house. The new mortgage pays off your existing loan, and you start fresh with new terms and conditions.

You can remortgage with the same lender, known as a product transfer, or switch to a new lender offering a more competitive deal. Many people choose to remortgage at the end of their initial fixed or discounted term, when their rate would otherwise revert to a higher standard variable rate.

Who Is Eligible to Remortgage?

Most homeowners can remortgage provided they have sufficient equity in their property and meet the lender’s affordability criteria. Your eligibility depends on your income, credit history, outstanding mortgage balance, and the current value of your home.

People with improved credit scores or increased property value since they first bought the home are more likely to qualify for favourable remortgage terms. Those with interest-only mortgages, self-employed income or past arrears may still be able to remortgage, but the range of options may be narrower.

Legal and Financial Framework in the UK

There is no legal barrier to remortgaging in the UK as long as your current mortgage agreement allows it. However, your existing lender may charge an early repayment charge if you leave before the end of your fixed or discounted term. This is usually a percentage of the remaining loan and can range from one to five percent depending on how early you exit.

Lenders must follow responsible lending rules set by the Financial Conduct Authority. They will carry out affordability checks, a credit assessment and usually a property valuation. If you are switching to a new lender, the legal process is more involved and will require conveyancing services, although some lenders include this as part of their remortgage package.

Steps to Remortgage Your Property

Start by reviewing your current mortgage deal and checking when it ends. If you are on a fixed rate, the best time to start looking is around three to six months before it expires. Compare mortgage products from different lenders or consult a mortgage broker for personalised advice.

Once you have chosen a new deal, you will submit an application. This includes details of your income, expenditure, outstanding loan and property value. The lender will run checks and may send a surveyor to assess the property. If approved, your solicitor will handle the legal work to repay your current lender and transfer the mortgage.

After completion, your new mortgage terms take effect. If you have released equity, this money will be transferred to you after the mortgage is finalised.

Costs and Timeframes

The cost of remortgaging depends on the type of deal and whether you are switching lenders. You may need to pay:

An early repayment charge to your current lender

An arrangement fee to the new lender

Valuation and legal fees, unless offered for free

Broker fees, if you use an intermediary

Some lenders offer fee-free remortgage deals that include legal services and valuation. Always read the full terms to understand what is included. The remortgaging process usually takes four to eight weeks from application to completion, but can be quicker if staying with the same lender.

Risks and Pitfalls

A common pitfall is remortgaging too early and incurring high early repayment charges. You should also avoid focusing only on the interest rate without checking arrangement fees, which can outweigh savings over time.

Failing to disclose accurate financial information or applying with a poor credit history can lead to rejection. If property values have dropped or your income has changed since you first took out your mortgage, you may not be able to borrow as much or secure a better rate.

Also, be cautious when remortgaging to release equity, especially for debt consolidation. This can lead to higher long-term interest payments and may increase the risk of negative equity if property prices fall.

Success Tips and Strategic Timing

To improve your chances of a smooth and cost-effective remortgage, check your credit report, pay down debts and gather financial documents in advance. Use comparison tools or a whole-of-market mortgage broker to find the best deal. Avoid letting your current mortgage roll onto a variable rate, which is often much higher than fixed rates available elsewhere.

If your fixed rate is ending soon, start looking early to allow time for processing. Some lenders allow you to secure a deal in advance and delay switching until the end of your term, helping you avoid early repayment charges.

Case Example

A homeowner in Birmingham was on a five-year fixed mortgage at 3.5 percent, due to end in two months. They compared offers and secured a new two-year fixed deal at 2.1 percent with no arrangement fee and free legal work. By switching on time, they avoided the lender’s standard rate of 5.9 percent and saved hundreds of pounds a month on repayments. The process took just over five weeks from application to completion.

Conclusion

Remortgaging your house can offer a valuable opportunity to reduce costs, improve financial flexibility or unlock capital. With careful planning, timing and advice, the process is relatively straightforward and can lead to significant long-term savings. By understanding the requirements, risks and steps involved, you can decide whether remortgaging is the right move for your circumstances and goals.