Remortgage Service

We provide high quality mortgage solutions for the UK and international clients.

• Remortgage finance from £100,000
• Market leading rates
• Access to high street, private & specialist bank mortgage deals
• Up to 95% loan to value (residential mortgages)
• Up to 80% loan to value (buy to let mortgages)
• Interest only mortgage and short term finance interest roll up options
• Maximising borrowing, e.g. mortgages for professionals, lenders that will allow 5x up to 6x salary
• Revolving mortgage options - unlock the equity in your primary home & access funds whenever you need to
• We can help if you have complex income, e.g. income from multi currency, multiple income sources, offshore trust or family trust arrangements, where the property is held in an offshore company, bonus & dividend income & using retained profits for company owners
• Solutions for UK expats, non-dom & foreign nationals buying or remortgaging UK property
• Equity release for over 55s - Solutions for releasing capital in retirement, e.g. home improvements, boosting income, mitigating IHT, raising a home deposit for children/grandchildren
• Fast, professional service. We understand that sometimes finance needs to be arranged quickly!
• If you have assets that you would like to be leveraged as part of the transaction, such as your investment portfolio, other property or pensions; our team can look at leveraging these assets to negotiate more flexible lending criteria and more favourable interest rates to help you get the best deal

Book a no-obligation consultation with one of our expert remortgage advisors at a convenient time for you:

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Or call us now on 0203 900 4322 to discuss your requirements. 

A Full Guide To Remortgaging

What is a remortgage? 

When you remortgage, you switch from one mortgage deal to another. 

It’s possible to remortgage with your current lender, but if you can find a better mortgage deal elsewhere, you may choose a different lender. Either way, when you choose a new mortgage deal, this is known as remortgaging.

As a home loan is likely your most significant financial commitment, you may want to review whether your current mortgage serves you well. You can shop around for a mortgage product just as you would for energy rates or your broadband service.

There are many different types of mortgage available on the market and you can usually find one that perfectly suits your needs at different stages in your life.

When should I remortgage?

The main reason people remortgage is when their current mortgage is ending, or they want to get lower rates. Remortgaging your home can also be an excellent way to raise cash (equity) locked up in your house to make home improvements or perhaps buy another property.

While remortgaging may seem like a complicated process, most of the time, it’s relatively easy, and you can save a lot of money - especially now that interest rates have been raised (from 1% to 1.25% cent as of June 2022).

It might also make sense to remortgage if the value of your home has increased or if you need a more flexible mortgage that allows you to make overpayments or take a payment holiday.

Can I remortgage early?

It's challenging to remortgage within the first 6 months of taking out your mortgage, but yes, you can remortgage at any time during a fixed term, whether 2 to 5 years or even longer. Whether it is wise to do so depends on why you want to remortgage early.  

If remortgaging early will get you significantly better rates, or if you need to release equity now, the benefits can outweigh any early repayment charges you might face by exiting your current deal before the end of the fixed term. But you should factor in all the costs of remortgaging early before making a decision.

How does remortgaging work?

The remortgage process will depend on whether you decide to stay with your current lender or switch to a new one.

Remortgage with your current lender:

When you change mortgage deals with your existing lender, it’s known as a ‘product transfer’ mortgage’. This is usually the most straightforward way to remortgage because your current lender already has all the information they need about you and your property. So they simply get you signed on to a new mortgage. This process can be completed in as little as 2-4 weeks.

However, it is wise to shop around as your current lender can only offer you their deals - they can’t always compete with other products on the mortgage market.

Depending on what it is you want to achieve through remortgaging, in some cases, your current lender simply won’t offer the best deal to suit your circumstances.

Related: Want to raise additional finance but protect your current low rate? A second charge mortgage might be the answer.

Switch to a new lender:

If you remortgage with a new lender, the process is a little more complex. The lender will need to check your ability to make repayments. So you’ll need to gather personal and financial documents as proof of income, information on any other loans you have, and ensure your credit score is as healthy as possible.

The process can take longer (4-8 weeks), but once everything is complete, your old mortgage is paid off by the new lender, and your new mortgage deal is in place.

When you remortgage with a new lender, you might have to pay solicitor and valuation fees, and your current lender may charge you an early exit or repayment fee if you’re remortgaging during a fixed term. You should always check with them to see what costs you may have to pay.

However, many lenders will offer you incentives to switch to one of their products, including waiving admin fees or offering a free valuation and legal fees as part of a mortgage deal.

You’ll need to weigh the benefits of switching to a new mortgage lender against the costs in terms of time and money. Despite any upfront costs, remortgaging with a new lender can be hugely beneficial in the long run.

Good reasons to remortgage

While most people remortgage when their current mortgage loan is coming to the end of its term or to get lower interest rates, there are many other reasons why you might consider a remortgage.

• Take advantage of lower interest rates, meaning you’ll have lower monthly payments.
  
  
• Your current mortgage is ending, and you want to avoid being switched to your lender’s standard variable rate (SVR), which is usually around 5%.
  
  
• You may want to switch to an interest-only mortgage from a fixed-rate one or vice versa.
  
  
• Remortgaging can be an effective means of raising capital for the purchase of a second home or investment property.

• You may need a more flexible mortgage deal that allows you to make overpayments (additional payments on top of your monthly repayments) if you’re aiming to become mortgage free. Or you may need to take a payment holiday if you’re changing jobs or taking a sabbatical.
  
  
• You can remortgage to consolidate your debts - making one monthly payment to one lender.
  
  
• You may need to release the equity locked up in your home - you can do this if your home has increased in value, borrowing more money to raise the funds you need. 

Remortgaging to release equity

If you think your house has risen in value since you first bought it, you will now own more equity in it. You can remortgage your home to release equity - the cash locked up in your home's increased value.

In this scenario, some people might choose to sell to release this cash, bank it, or move up the property ladder. However, when you remortgage to release equity, you don't have to move to get the funds you may need to build an extension, do some renovation, or perhaps pay off other debts.

You can also remortgage to release equity if your house hasn't risen in value - effectively, you'll be remortgaging to get back the money you have already paid in. In this case, you'll need to pay bigger monthly payments to borrow a larger sum of money.

Lenders will want to know what you plan to do with the money if you are applying for a remortgage to release equity. This will have to be a purpose approved by them, which might include the following:

• Making upgrades or renovating your home 
• Purchasing a new property
• Funding an important event such as a family wedding or paying for school fees
• Paying for private medical bills or residential and nursing home fees
• Consolidating any outstanding debt 

Can I remortgage a house I own outright?

Applying to remortgage a house you own outright is also called an ‘unencumbered remortgage’. Owning an unencumbered property means you own 100% of the equity in that property. This may be because you have already paid off the mortgage in full, bought the house with cash, or inherited a mortgage free property. 

You can use your home's value as security for a new mortgage and release some of the capital locked up in it. Refinancing your house in this way can be an excellent way to raise a lump sum of money at a lower interest rate than other types of borrowing, such as a personal loan.

The money could be useful for home improvements, helping a family member to get on the property ladder, or perhaps buying another property.

For more information on unencumbered mortgages and eligibility criteria, read our complete guide here. >>

Can I remortgage when self employed or as a contract worker?

You may wonder whether you can remortgage your property if you are self-employed or a contract worker. Self-employment shouldn't be a barrier to remortgaging, but it can be more complicated than if you're on a paid salary.

Meeting the following criteria will help your remortgage application go more smoothly.

• Regular employees only need to present pay slips dating three to six months back, but if you’re self employed or on a contract basis, your lender will want to review at least two years of your accounts – and sometimes more. 
  
  
• Be prepared to demonstrate future income. Lenders will need assurance of the stability of your work and projected earnings.
  
  
• Ensure your credit profile is in good shape, and do everything you can to tidy it up.
  
  
• Try to put down as large a deposit as possible to lower your LTV.  If your property has risen in value, you may be able to move to a lower LTV band, which could get you a better interest rate than your first mortgage. If you can secure a lower LTV, it offsets some of the risk on your lender’s behalf and makes your application more attractive.

The specialist mortgage advisors at Clifton Private Finance are experienced in helping self-employed individuals and contract workers with remortgaging. We offer expert advice and can match you with the right lender for your needs.

Remortgaging a buy to let property

There are several reasons why you may want to remortgage a buy to let (BTL) property.

Your current buy to let deal is ending

If your current buy to let mortgage deal is within 6 months of ending, now is a good time to start looking at buy to let rates available across the market. You should aim to remortgage before your current deal ends to avoid being dropped onto your lender's standard variable rate (SVR). 

Remortgage to get the best buy to let rates

You may want to switch from your current deal to take advantage of cheaper buy to let rates available on the market. It's always a good idea to review your options, but be aware that if you remortgage early you may have to pay fees.

You want to release equity from your buy to let

You can release the equity you've built up in your buy to let property over the years. Many landlords choose to do this to raise capital for property repairs or improvements, or to build their property portfolio - the capital raised could also be used as a deposit or part payment of an additional property purchase.

Change your buy to let mortgage to residential

If you want to move back into a property you once rented out, you'll need to remortgage to convert your buy to let mortgage into a residential mortgage. You can sometimes do this through your current lender, but it may also be an opportunity to find a more attractive remortgage deal with a new lender.

Our professional mortgage brokers offer a specialist service to clients who are looking to remortgage a buy to let property in the UK. We can also help with expat buy to let mortgages, buy to let mortgages with bad credit, limited company buy-to-let mortgages and more.

Is it better to get a secured loan or remortgage?

When you need to fund home improvements or consolidate debt, remortgaging is a great way to do so. You replace your existing mortgage with a new one, borrowing more to raise the funds you need.

If you get a secured loan (also known as a homeowners’ loan or 2nd charge mortgage), you borrow additional funds secured against your property on top of your existing mortgage.

Secured loans have higher interest rates than remortgages, but you can get a secured loan quickly - usually in a few weeks - and lending criteria are less stringent.

There are some situations where a secured loan might be better than a remortgage:

• A high early exit fee may make remortgaging unfeasible.
  
  
• You may already be on a very good mortgage rate, and a remortgage may give your lender the opportunity to increase it.
  
  
• You may be unable to get a remortgage deal because your circumstances have changed. You may have become self-employed and cannot prove your income, or your credit score has deteriorated.
  
  
• If you need to raise cash quickly, a remortgage can take up to eight weeks, while a secured loan can be arranged within weeks.

In most cases, remortgaging is a cheaper way to borrow money, but a secured loan is an option if you need immediate funds or if it's impossible to remortgage.

Please speak to one of our expert property finance brokers to discuss your options.

How much can I remortgage my house for?

This will depend on what you want to do.

Suppose you’re remortgaging to get a cheaper rate or more flexibility. In that case, you can borrow the equivalent amount that is outstanding on your current mortgage loan and switch deals, either with your current lender or a new one. As long as your home hasn’t decreased in value, your circumstances haven’t changed drastically, and you can afford the repayments, this shouldn’t be a problem.

If you’re hoping to borrow more, the amount you can borrow will depend on several factors:

• How much equity do you have in your home now?
  
  
• The value of your home now.
  
  
• The outstanding term in years on your mortgage or how long you plan to apply for
  
  
• Your income, affordability and credit rating

To calculate the equity, you may have built up in your home, you’ll need to get a realistic valuation – then, you can work out what proportion of that value you’ve built up in equity.

If your property has gone up in value, you’ll likely be able to borrow more at cheaper rates, as the loan to value (LTV) won’t be as high as if your house hasn’t gone up in value.

Generally, lenders will apply an LTV cap on any borrowing to release equity, depending upon what you plan to do with the money. Every lender has a different view on this, and how they apply this cap can vary widely.

It’s always best to get advice from an expert mortgage broker when you’re looking to raise money through remortgaging. We can help you determine how much you’ll be able to borrow and match you with the perfect lender for your needs.

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How to work out LTV when remortgaging

The lower your LTV (the amount you want to borrow compared to the value of your home), the cheaper your remortgage will be. The main bands where interest rates drop are 90%, 80%, 75% and 60% LTV.

It goes without saying that the less you borrow, the higher your LTV will be. You can also try to get as high a house valuation figure as possible, although you should be prepared that a valuer’s figure may not match your own.

To calculate LTV when remortgaging, you need to divide the amount you still owe on your mortgage by your current home’s value. Multiply this figure by 100, and this is your LTV percentage. You can find your mortgage balance on your monthly loan statement or online account.

Calculate your LTV

If you still owe £375,000 on a £500,000 house.

£375,000 divided by £500,000 = 0.75 x 100

LTV=75%

How long does it take to remortgage?

The remortgage process can take between 4-8 weeks. It’s usually much quicker when you remortgage with your current lender, as this is classed as a product transfer.

If you’re opting to go with a new mortgage provider, how long a remortgage takes depends on your application's complexity. In this case, a remortgage is treated as a new mortgage application, with lenders required to perform strict income and affordability assessments.

Any discrepancies in your house valuation and the required legal or conveyancing work can also hold up the process.  

There are several things you can do to speed up the process of remortgaging:

• Get all your personal and financial records in order – if you’re self employed, you’ll need 3 years of business accounts or tax records.
  
  
• Spend some time cleaning up your credit history
  
  
• If a higher valuation of your home could make all the difference to your LTV band, it might be worth asking a couple of estate agents to give you their opinion or pay for a professional valuation.

If you want to remortgage before your current deal expires and avoid being dropped onto your current lender’s standard variable rate (SVR), you should begin looking into a new mortgage 6 months beforehand.

If you’re set on finding a new lender to remortgage your home, seeking a mortgage broker's expertise can help speed up the process. A specialist remortgage broker can do all the legwork for you, finding the best mortgage deal and lender and assisting with the paperwork needed.

Book a FREE and no-obligation consultation at a convenient time for you:

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What are the costs of remortgaging?

Remortgaging a property involves two types of costs - the cost of leaving your current mortgage and the cost of setting up a new mortgage. The cost for each of these will vary based on your specific situation, but there are some fees that you should be aware of.

Costs of ending your current mortgage

Early repayment fee:  If you're still tied into a fixed term period with your lender, they may charge you to pay off your mortgage early. This will be stated in the terms of your contract, and they can only do this if it's in writing. This fee can vary between 1-5% of the outstanding balance on your mortgage.

Exit Fee:  Regardless of whether you're in a current fixed term deal or on the standard variable rate (SVR), some lenders charge a fee when you go to a new lender. This is usually a small administration fee, under £100.

Deeds release fee:  This is the fee a lender charges to cover the cost of sending your property deeds to the new lender. This can be anything up to £300.

Costs of starting a new mortgage

Arrangement fee:  Also known as a product fee, this covers the lender's cost of processing your new mortgage and setting it up. It can vary between £850-£2000 - some deals with cheaper rates come with higher product fees so the lender can recoup their costs. 

Booking fee:  A number of lenders charge a one-off fee when you submit an application for a special mortgage deal on offer. This cost won't be refunded if your mortgage doesn't go ahead. Prices vary up to £200.

Solicitor Fee:  You'll need a solicitor to do the conveying work - the process of adding your new lender to the property deeds. The cost is around £300, but many lenders will include conveying fees as part of a mortgage deal.

Valuation fee:  Your lender has to verify the value of your house as suitable security against the mortgage loan. You will be responsible for paying for this, but plenty of lenders offer this service for free.

Broker fee:  If you decide to use a mortgage broker, they will usually charge a fee of up to 1% of the property's value.

When considering a remortgage, you need to factor in all of the above costs. In many cases, you can find a new mortgage deal with much lower rates or benefits which means it's still worth remortgaging even if you're faced with early repayment charges. 

A mortgage broker can help you weigh the pros and cons of remortgaging now or whether it might be better to wait. With no obligation, you can speak to one of our specialist advisors to discuss your options.

Do I need a mortgage broker to remortgage?

Or call us on 0203 900 4322to discuss your requirements.