You are in section Home Mortgages Mortgage guides Simple guide to remortgaging
You may want to remortgage because your current deal is coming to an end or has ended, your home's value has gone up, you want more flexibility or you want to release equity.
Whatever the reason, if it’s been a while since you went through the mortgage application process, or you simply want to know you’re covering all the bases, this guide should help to shed some light on the subject.
In order to remortgage, you need to think about the type of deal you might want to switch to. If you’re unsure of which mortgage to choose, many lenders are able to give you advice in relation to the most suitable mortgage that they offer which will suit your needs. When advising you, they will take into account interest rates, arrangement fees and the term over which you wish to borrow. If you don’t want advice and you know what type of deal you would like then online mortgage calculators, best buy tables and comparison sites might help you make your decision.
Whether you've talked through your options with an advisor or done research online, if you're ready to apply then it's time to get your documents in order.
You will be asked for details about the property you’re borrowing against, so have these to hand.
And even though you may have provided these last time, you will probably be asked for details of your income (especially if you're moving to a new lender). You’ll need to supply recent payslips or detailed, official accounts and SA302s if you’re self-employed. If you receive any benefit payments, you might be asked to provide evidence of what those are and how much you’re given.
Whoever you’re borrowing from will also want to know what your average monthly spending is, so you’ll have to present bank statements from the last few months.
They will also want current and countersigned proof of identity and address, a driving licence and/or passport will be suitable proof of ID, and for proof of address, utility bills, credit card and bank statements are accepted by lenders.
Speak to your lender to find out exactly what they need and check out our documents guide, which should give you an idea of which documents lenders might need to see from you.
If you're switching to a new lender then you'll need to instruct a solicitor or licensed conveyancer to attend to the legal formalities (transferring your mortgage from one lender to another). Some lenders cover the cost of this as part of their remortgage package. If you need any legal work carried out on your own behalf at the time, for example, if you are adding or removing an owner of the property, you may need to instruct your own solicitor or licensed conveyancer as well.
If you don’t know where to start, you can find out details of firms by visiting: the Law Society website for solicitors and Council for Licensed Conveyancers website for licensed conveyancer firms.
When you're ready to submit your application you might have to pay an application and/or product fee. This is dependent on the lender and the product you are applying for so it’s worth checking.
Your lender will likely run a credit check even if you have your current mortgage with them. In essence a remortgage is a new application for credit so lots of the normal steps apply.
The lender may want a new valuation of the property done as well. It’s another cost, but one that may be worth it in the long run if the new mortgage is better suited to your needs.
What might happen:
Lender will run a credit check
Lender might want a new valuation
If your lender is happy to approve your application it will issue a formal mortgage offer for you to accept. Once your mortgage has been completed you can hopefully sit back, relax and put your feet up.
The material contained in this document is for information purposes only and does not constitute advice.
You should obtain relevant legal or other advice if you are unsure about the effect on you of any matter in this document.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
We have lots of different mortgage options, from Repayment and Offset, to Fixed, Tracker and Standard Variable Rate. If you’re not sure what any of this means, we can help.
We have a handy calculator to give you a rough idea of what you may be able to borrow – simply add a few details and get an indication in seconds.