PSR-FINANCIAL-SERVICES-LGO-FOR-2025-300x300 Remortgaging

5 things to think about before remortgaging

Stage 1. Look at your current situation: If you are going to change lenders you need to compile; credit reports, official identification documents, pay slips, and affordability calculations. You shouldn’t need to complete a check if you are staying with the same lender.

Stage 2. Review your Documents: Compile the documents in stage 1, along with your Mortgage application, bank statements, and any other documentation that is required.

Stage 3. Credit Check: You will be credit checked if you are using a new lender, but you should also run a credit check yourself. Once the check is approved you will receive a valuation of your property. .

Stage 4. Weigh Up the Costs: You can expect to pay a legal fee, arrangement fee, and/or a valuation fee if you are switching lender which you will need to work into any calculations that you complete.

Stage 5. Your Offer: You will receive an offer in writing if the lender is happy.

As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments

Still have questions about remortgaging? See our answers below.

The guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK.

plants RemortgagingQuestions & Answers about remortgaging

What is remortgaging?

Remortgaging is when you change your mortgage deal to a different, better deal. Remortgaging can be done with your current lender, or with a different lender.

How do I pay off my mortgage faster?

Some mortgage providers  in general can offer some variable products  which initially  may have cheaper  interest rates . These  types of products can  allow you to repay any amount without a penalty or penalties during the introductory period as opposed to Fixed rate products that offer the stability during the fixed term period .
The fixed rate products offer stability but will  usually have penalties during the fixed rate period. Some fixed rate products will usually allow an over payment during the fixed rate period of up to 10% of the outstanding mortgage amount but the lender should be contacted direct before making the payment to avoid confusion.
Over payments on either scenario will reduce the overall interest you pay and can have the effect of reducing the mortgage debt  over a shorter period of time.

When should I remortgage?

So you have decided that it is time to remortgage. As we know, this isn’t just a quick decision – but a decision that has probably taken you several months to decide.             The most common time that we have found that people want to remortgage is when they are simply paying way more than you should for their loan.

Why should I remortgage?

  • You could be eligible for lower interest rates and smaller regular payments
  • Protection against rate rises
  • You could pay off your mortgage faster!

Protection against rate rises: It is possible to remortgage onto a different mortgage deal such as a Capped, Discounted, or Fixed deal. Switching deal will change your payments from fluctuating amounts to set amounts.

Lower interest rates: We will assist you in trying to secure a great deal that will save you money in the long and short term. As most mortgages start with a fixed deal (up to 5 years) the interest you pay after the deal ends will be the Standard Variable Rate (SVR) that will be higher than most introductory deals.

Should I release equity?

Remortgaging with a new lender could assist you in saving extra money. If the lender asks you what the money will be used for, you can inform them that it will be for personal reasons such as; purchasing a new car, or making home improvements.

Email us on paul@psrfinancialservices.com to discuss a quote.