Compare remortgages

Remortgaging your home allows you to switch to a new mortgage deal for a property you already own.

You can either move to a new lender (known as a remortgage) or change to a different deal with your current lender (known as a product transfer).

When you come to the end of your existing mortgage deal, you're often moved to your lender's standard variable rate (SVR) which is usually higher than other rates available. People normally remortgage in order to get a lower rate and cheaper repayments.

Our expert mortgage broker, Mojo, can help compare remortgage deals across the whole of the market to find the right deal for you and your individual circumstances.

• Your current deal is ending - once your current deal ends, you'll be moved on to your lender's standard variable rate (SVR). This is normally higher than other rates available in the market so it's usually best to remortgage to another deal to save money.

• To find a better rate - remortgaging may allow you to get a better rate than you're currently on (particularly if you are currently on your lender's SVR). It's best to speak with a whole-of-market broker who can compare mortgages to find the best deal for you.

• Your property value has increased - remortgage to a lower loan-to-value (LTV) ratio as this may get you access to better rates.

• To release equity - If you want to borrow more money, you can do this by releasing equity from your property when you remortgage. This involves switching to a higher LTV deal.

• To shorten your mortgage term - When you remortgage, you can switch to a deal with a shorter mortgage term. This means you're paying off your mortgage in a shorter time period with higher monthly repayments, but you'll end up paying less in interest overall.

• To change onto a fixed-rate - If you're currently on a variable rate mortgage, you might want to remortgage to a fixed-rate mortgage to make sure your payments don't increase for a period of time.

To improve your chances of getting the best remortgage deal, you should consider doing the following:

• Have a high credit-score - improving your credit score will make you more appealing to mortgage lenders when it comes to borrowing money as they can trust that you'll make each monthly repayment.

• Look for remortgages with lower fees - watch out for the remortgage deals with a lower interest rate because although it seems to be a good deal at first, the fees can add up.

• Reduce your loan-to-value (LTV) - a lower loan-to-value ratio means you could be offered better remortgage deals, so try and borrow less if you can.

• Lock in a remortgage deal early - you can lock in a new rate up to six months in advance and then switch when your current mortgage term ends. Switching before the deal ends means you're likely to have to pay early repayment charges (ERCs).

• Shop around - it might be tempting to stay with the same mortgage lender, but you're better off comparing remortgage deals from a range of lenders for a better chance of finding the best deal for you. Our expert mortgage broker can help you with this.

Most UK mortgage offers last six months so it's normally a good idea to look into remortgage options around six months before the end of your current deal.

It is always good to plan ahead and make sure you have an offer in place before your current deal ends so you don’t end up moving onto your lender’s standard variable rate.

• Administration fees - many remortgage deals come with product fees, which can be known as administration fees, arrangement fees or booking fees. You can usually add these to your loan but you should avoid doing this if possible as you’ll end up paying interest on them for the life of the loan.

• Valuation and solicitor fees - a lender will always want to value your property when deciding how much and whether to lend to you and there will be legal work involved in completing the remortgage. However, remortgage deals often come with free valuation and legal fees.

• Early repayment charges - you’ll pay an early repayment charge (ERC) if you switch your mortgage before your initial deal ends so ideally you should wait until these no longer apply where possible. It’s only worth switching before this if you’ll save more money by remortgaging than you’ll be charged for exiting your existing deal.