If you already own a property and have a mortgage, you may be wondering, “Can I remortgage my house?” In many cases, the answer is yes. Remortgaging allows homeowners to replace their existing mortgage with a new mortgage, either with their current lender or a different lender.
People remortgage for many reasons. You may want to secure a lower interest rate, reduce your monthly mortgage payments, release equity from your property, or borrow additional money for home improvements.
However, remortgaging is not automatically the right choice for everyone. The costs, interest rate available to you, your income, credit history and the amount of equity in your property can all affect whether it makes financial sense.
What Does It Mean to Remortgage a House?
Remortgaging means taking out a new mortgage to repay your existing mortgage on the same property.
For example, suppose your house is worth £300,000 and you have £180,000 remaining on your current mortgage. You could potentially remortgage and move to a new mortgage deal based on your financial circumstances and the property's value.
The new mortgage may be provided by your existing lender or by another mortgage lender.
Unlike moving house, you normally remain in the same property. The main purpose is to change the mortgage arrangement rather than sell your home.
Can I Remortgage My House at Any Time?
You can potentially remortgage before your current mortgage deal ends, but the timing is important.
If you are still within a fixed-rate or other introductory mortgage period, your lender may charge an early repayment charge (ERC) if you repay the mortgage early. Depending on the mortgage, this charge can be significant.
Many homeowners therefore start researching their remortgage options several months before their current deal expires. This gives them time to compare rates and understand the costs involved.
If your current mortgage is approaching the end of its fixed or discounted period, it may be particularly useful to review your options before automatically moving onto your lender's standard variable rate.
Why Do Homeowners Remortgage?
There are several common reasons to remortgage a house.
To Get a Lower Mortgage Rate
One of the biggest reasons homeowners remortgage is to find a more competitive interest rate.
If mortgage rates have changed since you took out your existing mortgage, you may be able to find a deal that reduces the interest you pay.
However, the cheapest advertised rate is not necessarily the cheapest overall option. Arrangement fees, valuation fees, legal costs and other charges should also be considered.
To Reduce Monthly Payments
A new mortgage with a lower interest rate could potentially reduce your monthly payments.
Your monthly payment will also depend on the remaining mortgage balance and mortgage term. Extending the mortgage term can reduce monthly payments, but it may increase the total amount of interest paid over the life of the mortgage.
To Release Equity
If your property has increased in value or you have paid down a substantial amount of your mortgage, you may have built up equity.
For example:
Property value: £350,000
Outstanding mortgage: £200,000
Approximate equity: £150,000
Some homeowners remortgage to borrow additional money against this equity. This is sometimes referred to as equity release through remortgaging.
The additional borrowing could potentially be used for purposes such as home improvements, although the lender will assess whether the additional borrowing is affordable.
To Fund Home Improvements
Remortgaging can sometimes provide a way to raise money for renovations or extensions.
For example, you might want to convert a loft, renovate a kitchen or build an extension. Rather than using unsecured borrowing, some homeowners consider increasing their mortgage borrowing.
Because your home is used as security for the mortgage, however, you should carefully consider the long-term cost and risk of borrowing more.
To Change Mortgage Type
You may also remortgage to change the type of mortgage you have.
For example, you could move from a fixed-rate mortgage to another fixed-rate product, or consider a different repayment structure depending on what is available and suitable for your circumstances.
Can I Remortgage If I Have a Small Amount of Equity?
Possibly, but the amount of equity you have can affect the mortgage deals available to you.
Lenders commonly consider the loan-to-value (LTV) ratio when assessing mortgage applications.
For example, if your property is worth £300,000 and your outstanding mortgage is £150,000, your LTV is 50%.
Generally, a lower LTV can give a borrower access to a wider range of mortgage products and potentially more competitive rates, although this depends on the lender and the wider market.
If your mortgage represents a high percentage of your property's value, remortgaging may still be possible, but the available products may be more limited.
Can I Remortgage If My House Has Increased in Value?
Yes, an increase in your property's value can potentially make remortgaging more attractive.
Suppose you originally purchased your home for £250,000 with a £200,000 mortgage. If the property is now worth £325,000 and your mortgage balance has fallen to £180,000, your LTV has fallen considerably.
A lower LTV could potentially improve the mortgage products available to you.
However, the lender will normally need to establish the property's current value. Depending on the mortgage product and lender, this may involve an automated valuation or a professional property valuation.
Can I Remortgage with Bad Credit?
Having a poor credit history does not necessarily mean you cannot remortgage, but it can make the process more difficult.
Mortgage lenders may consider factors such as:
If your credit circumstances have changed since you originally obtained your mortgage, the range of available products may be different.
It can therefore be useful to check your credit report and compare your options before making an application.
How Much Does It Cost to Remortgage a House?
Remortgaging may involve several costs, although the exact amount varies depending on the mortgage product and lender.
Potential costs include:
Early repayment charges
Mortgage arrangement or product fees
Valuation fees
Legal fees
Broker fees
Land Registry-related costs or administrative charges, where applicable
Some remortgage products advertise free valuations or free legal services. However, a mortgage with no upfront fees does not necessarily have the lowest overall cost.
When comparing mortgages, look at the total cost of the deal rather than focusing only on the interest rate.
What Documents Do I Need to Remortgage?
The exact requirements vary between lenders, but you may be asked to provide information such as:
Proof of identity
Proof of address
Evidence of income
Bank statements
Details of your existing mortgage
Information about your property
Details of outstanding debts and financial commitments
If you are self-employed, the lender may request additional evidence of your income and business finances.
Having your documents ready can make the application process smoother.
How Long Does It Take to Remortgage?
The time required to remortgage can vary considerably.
A straightforward remortgage may be completed relatively quickly, while applications involving more complicated finances, property issues or additional borrowing can take longer.
It is sensible to begin comparing mortgage options before your current deal expires rather than waiting until the last minute.
This gives you more time to compare products, obtain an agreement in principle where appropriate, complete the application and deal with any issues that arise.
Should I Use a Mortgage Broker?
You can compare remortgage products yourself, but a mortgage broker may be useful if your circumstances are complicated or you want help comparing lenders.
A broker may be able to identify mortgage products that you might not find by simply looking at one lender's website.
However, broker fees and the scope of the broker's service should be considered before proceeding.
Is Remortgaging Always a Good Idea?
Not necessarily.
Before deciding to remortgage, compare the potential savings with all associated costs.
For example, imagine a new mortgage would save you £250 per month compared with your existing deal. That sounds attractive, but if switching involves £5,000 of charges, the financial benefit may be much smaller than it initially appears.
You should also consider how long you intend to remain in the property, whether you are increasing your borrowing and whether the new mortgage has an early repayment charge.
A simple comparison should look at:
Potential mortgage savings − switching costs = potential financial benefit
This calculation is only a starting point, but it can help you understand whether switching is worth investigating.
When Should I Start Looking for a Remortgage?
Many homeowners begin reviewing their mortgage several months before their existing fixed-rate deal ends.
Starting early can give you time to:
Check your current mortgage terms.
Find out whether an early repayment charge applies.
Estimate your home's current value.
Calculate your LTV.
Check your credit report.
Compare available mortgage rates.
Calculate the total cost of switching.
Apply for a new mortgage if appropriate.
The earlier you understand your options, the less likely you are to make a rushed decision when your existing deal expires.
Frequently Asked Questions
Can I remortgage my house with the same lender?
Yes. You do not necessarily have to move to another lender. Your existing lender may offer a new mortgage deal, sometimes through a product transfer.
Can I remortgage to pay off debts?
Some homeowners consider increasing their mortgage to consolidate other debts. However, this can increase the amount secured against your property and may result in paying interest over a longer period. Professional financial advice can help you understand the risks.
Can I remortgage if I have an interest-only mortgage?
It may be possible, depending on your circumstances and the lender's criteria. Your income, repayment plan, property value and outstanding mortgage balance may all be relevant.
Can I remortgage to buy another property?
In some circumstances, homeowners use additional borrowing or equity from their existing property to help fund another property purchase. The lender will assess affordability and the purpose of the borrowing.
Can I remortgage if I am self-employed?
Yes, being self-employed does not automatically prevent you from remortgaging. However, lenders may request additional evidence to verify your income.
What Should I Check Before Remortgaging?
Before committing to a new mortgage, consider the bigger financial picture rather than looking only at the headline interest rate.
Check your current mortgage balance, property value, LTV, remaining mortgage term, early repayment charges, product fees and expected monthly payments.
It is also worth considering whether you want to borrow more money or change the length of your mortgage term.
Ultimately, the right decision depends on your personal financial circumstances and the mortgage products available when you apply.
If you are asking “Can I remortgage my house?”, the answer is often yes—but the more important question is whether remortgaging would actually improve your financial position after all costs are taken into account.