When you remortgage you are simply moving your loan to a different bank, or onto a new deal with your current lender to ideally get a lower interest rate.
The less interest you are charged on the whole loan, the less you have to pay each month, meaning you save money.
That's the simplified version; the full process can take much longer and be complicated by the size of the loan you need. For example, if it's 90% remortgage deals you're after, you could be in for a bit of a slog.
Finding the best 90% LTV remortgages
Sometimes it can be hard to find the best 90% remortgage deals, your choice will be limited and the very best mortgages tend to be reserved for borrowers with more equity, but there are still some bargains to be found.
This reason this is more of an issue with remortgage deals for 90% loan to value (LTV) is because lenders fell there's less security for them. As such many lenders are reluctant to offer them at all; if they do they're likely be more expensive.
Another route to take might be by asking a qualified broker 'Can I get a 90% remortgage?', as it's their job to assess your finances and help you find the best option for your finances. The right mortgage broker will work with you and approach lenders on your behalf to find the best deals - our guide How to interview your mortgage broker before they start your search can help you get started.
Aspects of 90% remortgage deals you need to consider
When comparing 90% LTV remortgages, you must decide whether you want to make fixed payments each month or are comfortable for them to vary.
If you want to know how much to put aside, a fixed rate is the best bet as that is the amount of interest you will pay for the initial mortgage term.
A variable rate goes by the Bank of England's base rate (plus whatever the bank adds on) and so tracks its movement - as it can rise or fall. At a time of low general interest, you could end up paying less, but it's not guaranteed to stay the same throughout your mortgage term.
For working out what the best 90% remortgage deals actually are, you also need to factor in fees associated with each deal, as well as what penalty charges are in place if you break any of your lender's conditions.
The remortgaging process explained
When you took out your previous mortgage you'll probably have started off paying the initial interest rate. This is a reduced rate lenders use to draw you in as a customer.
When that rate expires you'll start paying their standard variable rate (SVR), which is usually higher - meaning you pay more interest on your loan each month. This is why it's recommended that you make a 90% LTV remortgage comparison - to see if you can move somewhere else, get a better rate and pay less.
Start having a look around
Don't leave it to the last second to search and compare 90% remortgages deals, the process can take a number of weeks to finalise so you need to begin looking a month or two before your current rate ends.
Use our 90% remortgage comparison to get an idea of what lenders are offering and make a shortlist of ones that look decent.
Speak to your current LTV mortgage provider
Even if you are tempted to move, you still need to talk to your bank, for a number of reasons.
Firstly you need to check you actually can leave after the introductory rate ends, and that there's no clause tying you down.
You also need to get a quote from them that outlines what you owe - and therefore what you'll need to borrow from your next lender.
Finally, even though the grass may seem greener elsewhere, don't rule out your current mortgage provider matching a deal you find, or having rates that you didn't know about.
Apply and get yourself a solicitor
When you've had a good look at the best remortgage deals 90% LTV and settled on one, you can start the actual process of switching.
Again, leave a good deal of time for it to go through and try to move before your bank charges anymore interest.
You'll need a solicitor to speak to your current lender and the one you're moving to, as well as organise the legal aspects of remortgaging.
They'll arrange for the funds to be moved between the lenders. Our guide How to get a remortgage is worth reading if you want to know more about how the process works.
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