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By moving your mortgage to a new lender with lower rates, you could pay less per month.
Remortgaging your property is to agree new terms with a lender, meaning you could borrow a lump sum.
There are many different types of remortgage deal, each one suited to raising money for different means.
By accepting a lump sum, you may find that you owe more than you originally planned and will be paying it back for longer.
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Remortgaging is the process of replacing your existing mortgage plan with new terms. Doing so could help you 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.
Remortgaging may work best 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.
The equity you hold in your property is its current value minus your outstanding mortgage. This equity value can be used to calculate your loan-to-value rate (LTV), which is given as a percentage. A lower LTV rate can be a great way to secure lower interest rates on your remortgage deal. This may mean:
The alternative is to borrow more money than what you currently owe against the value of your home. You’ll receive the difference as a lump sum in your bank account to use for your chosen purpose.
For more information, read our guide to remortgaging to release equity in your home.
There are often large fees involved when it comes to remortgaging. The process often requires contractual changes, so it’s important to consider whether it’s worthwhile to make the change.
Switching lenders could incur an early repayment charge, meaning you must pay your old lender for moving your mortgage, which you could be tied into for a set period. For example, a fixed rate mortgage will normally have an early repayment charge if you repay or change your mortgage during the initial fixed-rate period.
There are various admin charges to consider too, including booking, valuation and conveyancing costs. While not all lenders will charge these, it’s worth looking into before making any commitments to be sure they can all be paid.
Like any important decision in life, you should weigh up the pros and cons of remortgaging before committing.
There are different types of remortgage loans to suit your individual circumstances.
Remortgaging your buy to let property can help you secure better terms and free up cash.
Secure a better deal on monthly repayments and reinvest the savings elsewhere in your business.
Raise money to help cover the cost of other debts by remortgaging your property.
Remortgaging could give you better loan terms, provided you can meet the repayments. We have several remortgage options for those with bad credit.
Release some of the equity in your property as a lump sum to spend on home improvements through remortgaging.
Your eligibility depends on several factors, including how much equity you currently possess, the value of your home and your financial situation. Every lender has their own criteria when it comes to deciding whether to offer you remortgage terms.
Be sure you can afford any new repayment plans and cover any fees before deciding whether to switch to new terms or not. For more advice, check out our guide to remortgaging with bad credit.
With Norton Finance you can borrow between £3,000 and £500,000, dependent on your financial situation.
Still unsure whether remortgaging is the right move? We’ve compiled answers to the more common questions we get asked at Norton Finance.
Our flexible repayment terms range from 3 to 30 years.
Interest rates depend on your financial situation but start from 1.38%.
We get our commission from the lender, not the customer. We may charge a broker fee of 7.5% of the original loan, but that’s capped at £2,000.
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. This is sometimes provided from the lender’s own panel of solicitors.
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.
You can pay off a remortgage in full at any time during the agreement - but most lenders will charge an Early Repayment Fee if your mortgage contract includes this as part of your original terms and conditions. It’s worth considering whether it is beneficial to pay these fees before deciding if you should repay your mortgage off early.
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 handy tool at the top of the page 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.
Before you apply, check out our guide on what you need to know before remortgaging.
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