Remortgages

There are many reasons why someone wants to remortgage — generally they are either looking to borrow more or pay down more, so understanding that position is important. There is a third set which is essentially just looking to get a best rate. Depending on the answer between those three, we go down different paths.

If they’re trying to borrow more, that could be an affordability issue — income and affordability, or an age issue, or an asset issue. What are you trying to borrow it for? It could be a “reason” issue — why do you need the money? A new car, a holiday? Or more importantly, are you struggling to pay your debts off?

For all of those, you have a path, you go through it, and an experienced broker will understand which path you need to go through — which doors to open and which doors to close. At the end of that journey we work out together who is the best lender. The best outcome is generally reached when the broker and the client both understand what they’re doing and what the needs and solutions are.

In short: Remortgaging is for homeowners who want to switch deals, borrow more, or reorganise borrowing on a property they already own. It can suit people whose situation has changed — newly self-employed, a credit blip since the last deal, a property now flagged on construction. The key risk is that borrowing more, or extending the term, increases what is secured against your home. This is information, not advice — speak to a qualified adviser before you commit.

When a remortgage gets complicated

For many homeowners, switching to a new deal is simple. The cases that bring people to a specialist broker are usually the ones where something has changed since the last mortgage was arranged — or where the obvious route has hit a wall. The most common situations include:

Trapped on the standard variable rate (SVR). A deal ended, nothing was arranged in time, and the loan has reverted to a higher variable rate.
Now self-employed or with complex income. Income that was once a straightforward salary is now self-employment, dividends, contract work, or a mix — and the previous lender’s affordability model no longer fits.
Adverse credit since the last deal. A CCJ, default, missed payments, or a period of difficulty that did not exist when the original mortgage was taken out.
The property is now flagged. Non-standard construction, cladding, a flat above commercial premises, or another feature a high-street lender will not lend on.
Changed personal circumstances. A relationship breakdown requiring a transfer of equity, a change in residency or visa status, or moving from two incomes to one.

Our company is called Niche Advice Limited, and since 2008 we’ve been dealing with the specialist market. We started off placing mortgages just after the financial crash, which meant a lot of people previously eligible for mortgages were out of favour with a lot of high-street lenders — that’s what Niche Advice Limited started working on, and we have thrived within this specialist market.

It’s a market we understand, and it’s very much a criteria-based approach. As a whole-of-market mortgage broker we have access to the high-street lenders, but we also have access to many specialist lenders that are not available to consumers.

That knowledge — being within this sector for many years — has instilled a lot of knowledge that you essentially cannot search for on the internet. It’s partly relationship-based, partly understanding the lenders’ process and criteria as well as the underwriting process, and that gives us the confidence to say we really do know what we’re talking about when dealing within the specialist remortgage market.

The point of a specialist is not the simple switch — it is matching a changed situation to a lender whose criteria actually fit it. Risks still apply to every one of these routes, and they are set out below.

The four main routes — and when each may fit

Where a homeowner has options, they usually fall into one of four routes. The right one depends entirely on individual circumstances. The table below is a scannable overview only — it contains no rates, fees or payments, because those depend on your situation and change constantly.

Which route suits you depends on how much you owe, your property’s value, your income and credit profile, and whether you want to change the loan amount or term. An adviser can compare the options across the lenders we work with and explain the costs before you commit.

Payam Azadi

Director — specialist finance expert

Not sure which remortgage route fits you?

Product transfer, full remortgage, further advance or second charge — an adviser can talk through which may suit your circumstances.

Speak to an adviser

Capital raising and home improvements

Capital raising means borrowing more than you currently owe and releasing the difference as cash — for home improvements, a deposit for another property, family costs, or a one-off expense. If your property has risen in value or you have paid down a chunk of your mortgage, you may have equity to borrow against.

The thing to keep in mind is that borrowing more increases the amount secured against your home and, all else being equal, increases what you repay over the life of the loan. The maximum you can borrow is usually expressed as a loan-to-value (LTV) percentage — the proportion of the property’s value the mortgage represents — and lenders set their own LTV limits.

Funding renovations works the same way: you release equity and use it for the work. Some improvements may add value, though that is never certain and depends on the work, property and market. An adviser can talk you through what is realistic and what it means for you.

When debt consolidation comes into it

Some people remortgage to release money to pay off other debts — credit cards, loans or car finance — bringing several payments together. It can suit some situations, but it carries real risks, and it secures previously unsecured debt against your home.

This is its own subject with its own warnings, so we cover it properly on a dedicated page rather than repeat it here:

➤ Debt consolidation remortgages — the full risks, the term-extension warning, and when advice matters most.

If your debts are becoming unmanageable, free and impartial help is available from MoneyHelper, StepChange and Citizens Advice.

If you want to keep your home and let it

Let-to-buy is for people who want to move home but keep their current property and rent it out rather than sell. It combines a regulated residential mortgage on the new home with a buy-to-let arrangement on the old one. The buy-to-let side is generally not regulated by the FCA, and tax and landlord responsibilities apply.

Because it has its own moving parts, we cover it in full on a dedicated page:

➤ Let-to-buy — how the two-step move works, the regulated vs unregulated split, and what to consider.

When we may recommend not remortgaging

Switching is not always the right move. There are situations where staying put, or waiting, may be the better outcome — and a good adviser should say so. Common reasons include:

Early repayment charges (ERCs). Leaving most fixed deals early triggers a charge. If you are partway through a deal, the ERC may outweigh any benefit of switching now — it is often better to wait until the deal is ending.
Reduced or less certain income. If your income has fallen or become less predictable, a remortgage that increases borrowing or fails an affordability check may not be in your interest.
Total cost over time. A lower headline rate is not the whole picture. Fees, a longer term, and the overall cost across the deal can mean switching costs you more, not less.
A small remaining balance or short term left. The cost and effort of remortgaging may not be justified.

The honest answer is sometimes “stay where you are for now.” This page exists to inform that decision, not to push a switch.

Timing: why the run-up to your deal ending matters

If you are on a fixed deal, the period before it ends is the moment to plan. When a fixed rate finishes, the mortgage typically reverts to the lender’s standard variable rate, which is often higher and can move — so being caught on it unintentionally can be costly.

Offers can usually be held for a period. Many lenders let you arrange a new deal some months ahead of your current one ending, so the new rate is ready as the old one finishes — without paying ERCs on your existing deal.
ERCs. Remortgaging as your deal ends — rather than partway through — usually avoids the charge, but always check your own terms.
Applications take time. Valuations, affordability checks and legal work do not happen overnight, so starting early gives you room to compare without pressure.

Leaving it to the last minute can mean fewer choices and unnecessary time on a higher variable rate.

Plan your timing

Not sure when to start? Our figure-free remortgage timing checker takes your current deal’s end date and ERC band and helps you see roughly when to begin the conversation — so you can avoid both an early-exit charge and an accidental spell on the variable rate. It illustrates timing only; it does not show rates or payments.

➤ Try the timing checker on our tools and calculators page.

Frequently Asked Questions

Straight answers from a whole-of-market mortgage broker.

I’m stuck on my lender’s standard variable rate — can I switch?

You should definitely try, and explore this option. Reverting to the SVR when a deal ends is common, and remortgaging to a new deal — with your current lender or a new one — is usually worth exploring. If your circumstances have changed since your last mortgage, an adviser can identify which lenders are likely to fit before you make an application.

Can I remortgage if I’ve become self-employed or my income is complex?

It is often possible, but the previous lender’s affordability model may no longer fit. Self-employment, dividends, contract income or a mix are assessed differently by different lenders. Matching your income type to a lender comfortable with it is where advice adds the most value.

Can I remortgage with a CCJ or other adverse credit since my last deal?

A credit event that did not exist when your original mortgage was arranged can affect which lenders will consider you, but it does not automatically rule out a remortgage. See our bad credit mortgages page and speak to an adviser about your specific situation.

Can I remortgage to borrow more?

Often, yes — this is capital raising. How much depends on your property’s value, your income, your existing borrowing and each lender’s loan-to-value limits. Borrowing more increases the amount secured against your home.

Should I always remortgage when my deal ends?

Not necessarily. A product transfer — staying with the same lender on a new deal — is often available when your existing deal ends, and it frequently comes without an early repayment charge. Whether to remortgage (move to a new lender) or take a product transfer (stay with your current one) depends on your circumstances, what deals are available, and which represents better value for you. ERCs, reduced income, fees, or a short remaining term can also mean staying put or waiting is the better outcome. A good adviser should tell you when not to remortgage. See the section above on when we may recommend against it.

How long does a remortgage take?

Everything comes down to your circumstances and which lender is chosen. Make sure you speak to your mortgage broker about expected timeframes and what you need out of the deal. An experienced broker has access to lender service levels — which are often published — and understands the process. For example: does one lender instruct the valuation straight away on application, or hold it until underwriting? That could be the difference of a week. Understanding the legal process for that lender, who their panel managers are, their service standards, and the underwriting process — whether it is fast and automated or manual — means a broker with genuine experience in this sector can give you specific and practical guidance on what to expect and how to plan accordingly.

Payam Azadi, specialist mortgage adviser

Thinking about remortgaging?

Whether you are switching deals, borrowing more or your situation has changed, an adviser can compare your options across the lenders we work with.

Speak to an adviser

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