Mortgages - The Basics

Re Mortgaging means replacing an existing loan with a new one from a different lender.

Reasons to Remortgage

To obtain a more favourable interest rate and reduce your monthly payments

To raise capital for things like home improvements, deposits on additional properties, new car etc.

Cheaper to extend than move. You may find that it’s cheaper to remortgage and build an extension than to move home and incur costs such as estate agent’s fees, stamp duty etc.

Debt consolidation. This may reduce your monthly costs but there are risks attached.

Costs to Consider

Your existing lender may require an Early Repayment Charge especially if you are in a fixed rate deal.

Most lenders charge a sealing / discharge fee for releasing the deeds.

There may be legal fees, typically £300 – £500 and valuation fees. However there are a number of lenders who have incentives for remortgage clients such as free valuation and/or free legal fees.