If your mortgage deal is coming to an end, you've probably heard the word "remortgage". It sounds technical, but the idea is simple. Here's what it means, how it differs from switching deals with your current lender, and when it's worth starting to look.
What is a remortgage?
Remortgaging means moving your mortgage to a new lender without moving home. Your new lender pays off your old mortgage, and you start making your payments to them instead.
People usually remortgage to:
move to a new deal when their current one ends
borrow more, for example for home improvements
change the length of their mortgage or how it's set up
add or remove someone from the mortgage
Remortgage vs product transfer: what's the difference?
A product transfer means staying with your current lender and choosing a new deal from them. A remortgage means moving to a different lender.
Product transfer: same lender, usually lighter paperwork and often fewer checks, but you can only choose from that lender's deals.
Remortgage: a new lender and a full application with credit and affordability checks, but access to deals across the wider market.
Neither is automatically better. The right choice depends on the deals available, any fees, and your circumstances.
What happens if I do nothing?
When your deal ends, you'll usually move onto your lender's standard variable rate. This is often higher than the deal you were on, so your monthly payments could go up.
When should I start looking?
It's worth reviewing your options around 4 to 6 months before your deal ends. That gives you time to compare options and have a new deal ready to start when your current one finishes, avoiding early repayment charges for leaving too soon.
Can I borrow more when I remortgage?
It may be possible. How much you could borrow depends on your income, outgoings, credit history, your home's value and the lender's criteria. You can get a rough idea with our remortgage calculators.
How a broker helps
I'll look at what your current lender is offering alongside the wider market, explain the costs of each option, and handle the paperwork if you decide to go ahead. Find out more about remortgaging with Hannah Miller Homes.
Is your deal ending in the next six months? Get in touch and let's look at your options.
Your home may be repossessed if you do not keep up repayments on your mortgage.