Remortgages

What is remortgaging?

Remortgaging is when you replace your existing mortgage plan with new terms. You could do it to find a better deal and reduce your monthly mortgage payments, to free up funds for home improvements or to help with life’s important moments – like a wedding or university tuition.

Guide to remortgaging

Remortgaging may work for homeowners who’ve seen an increase in market value since they bought their house and want to make new financial plans.

In this situation, your property is - in theory - worth more than when you bought it, combining your mortgage repayments to date and the estimated increase in value.

Your property’s current value minus your outstanding mortgage is the amount of equity in your property. This can be used to calculate the loan-to-value rate (LTV), given as a percentage. A lower LTV rate can be a great way to secure lower interest rates on your remortgage deal, and so to pay lower monthly instalments going forward and save you interest over the term of your mortgage.

You can also borrow more money than you currently owe against the value of your home. This is remortgaging to release the equity in your property. You’ll receive the difference as a lump sum to use for your chosen purpose.

At Norton Finance, we work with a range of lenders to secure a monthly repayment plan that works for you.

How much can I borrow?

With Norton Finance you can borrow between £3,000 and £500,000, dependent on your financial situation.

Applying for a remortgage

There’s a lot to consider when it comes to getting a remortgage quote. That’s why we’ve tried to make the process as easy as possible, for all homeowners.

Once you know how much you want to borrow, use our simple remortgage calculator to help decide whether remortgaging is for you. Once we’ve gathered all the details, we’ll guide you through the next steps of the remortgaging process.

Am I eligible for a remortgage?

At Norton Finance, we believe everyone should be able to consider a remortgage on their own property - after all, part of it is yours. Whether you’re self-employed, retired, have CCJs or concerns about poor credit, we can find the ideal plan for you.

If you share ownership on your home, that’s no problem either. Remortgaging could still be an option where your personal equity is concerned.

Pros and cons of remortgaging

Like any important decision in life, you should weigh up the pros and cons of releasing equity before making a decision:

Pro - You want to borrow money

Whether it’s increasing the resale value of your property with a new extension or financing your dream wedding, sometimes you need extra cash to take the next step. By remortgaging, you can free up funds against your property, giving you a lump sum to spend as you need.

Pro – You’ll find a better rate

With property values increasing over time, it’s likely that your home is worth more than when you bought it. By getting a remortgage quote, you can often find a much cheaper rate, meaning you could potentially save £1000s a year in interest.

Con – There are fees to consider

When switching lenders, you may have to pay your original lender a penalty when you move. This is called an Early Repayment Charge. The fees can be as much as 5% of your existing mortgage balance, so it’s important to see whether these costs outweigh the benefits you’ll get from any cash sum or new repayment plan.

Con – You don’t have much equity yet

If you’ve only just purchased your home or don’t have much equity invested yet, it’s unlikely that you’ll find a better rate. Wait until you’ve paid off more of your mortgage before considering a switch.

Remortgage FAQs

Please click below for the answers to our most commonly asked questions. If you can't find the information you need, call us free on 0800 694 5566 and one of our advisers will be happy to help.

How much can I borrow?

At Norton Finance you can borrow anywhere between £3,000 and £500,000.

How long are the repayment terms?

Our flexible repayment terms range from one to 30 years.

What are the interest rates?

Interest rates depend on your financial situation but start from 1.15%.

Are there any loan fees?

We get our commission from the lender, not the customer. We may charge broker fees of 12.5% of the original loan, but that’s capped at £3,995.

Do I need a solicitor?

If you’re remortgaging with the same lender, they’ll handle the legal work. However, if you’re switching for a better rate elsewhere or want to release a cash lump sum, a conveyancing solicitor can assist with all the legal paperwork.

Do I need a valuation?

You’ll need to get a valuation on your property to find out its current worth. This will give you an idea of how much you’d want to borrow, and if you could find a better deal elsewhere.

Can I pay off a remortgage early?

A remortgage can be paid off at any time during the agreement - but most lenders will charge an Early Repayment Fee if you do. This charge makes up for the interest the lender will miss out on when you leave. It’s worth considering whether you can afford these fees when deciding if you should repay in full early or not.

Can I remortgage with negative equity?

Sometimes the value of your home can drop, meaning it may be worth less than when you bought it. In this situation, it’s best to wait out the market and overpay on your debts rather than seeking a new deal, which is likely to be costlier than your current plan.