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Remortgaging isn’t only about finding a lower rate. For many people, it’s about adapting their mortgage to suit what’s going on in life.
Whether you’re thinking about home improvements, responding to a change in your circumstances, or simply exploring a better deal, there are a number of directions to take.
This guide breaks things down based on the most common reasons people remortgage, so you can see which route might apply to you.
Looking to Save Money or Switch Deals?
If your fixed rate is due to end soon, or you’re already on your lender’s standard variable rate, this could be the time to secure a better deal.
Many people begin by accepting a product transfer deal offered through their banking app or online portal, but these aren’t always the most competitive options.
By remortgaging to a new lender, you may be able to reduce your monthly repayments or fix your rate again.
If you start the process up to six months before your current deal ends, you can line up a new mortgage to begin as your old one finishes.
This helps avoid overpaying, and gives you more control over your next step.
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Borrowing More Through Your Mortgage
Some people remortgage to borrow additional funds, often by releasing equity built up in their property.
This might be used for things like funding home improvements, covering large purchases, helping family, or investing in a second property.
If you’re thinking about making changes to your home, you could remortgage to cover the cost of building an extension, upgrading the kitchen, or converting the loft.
Lenders may ask for estimates if you’re borrowing a larger amount, especially for structural changes. You can still choose your own contractor, but they’ll want to see a breakdown of costs in advance.
Managing a Change in Circumstances
If your situation has changed, your mortgage might need to change with it. A common example is when someone separates from a partner, and one person wants to stay in the home.
Provided the remaining person meets the lender’s affordability checks, it may be possible to take the mortgage on alone. Documents like payslips and bank statements will usually be required.
In many cases, people also raise additional funds at this point to pay a settlement to their ex-partner. That can all be arranged as part of the same remortgage process.
Similarly, some clients look at age 50+ options, especially from age 55, where they might use the property to support retirement plans or help family financially.
Consolidating Unsecured Debt
One of the more specialist types of remortgage is debt consolidation. This is where you take existing unsecured debts, like credit cards or loans, and include them within your mortgage.
It can lower your monthly outgoings, but it also means those debts are now secured against your home. You may pay more in interest overall, especially if the term is extended.
It’s important to think about how long your current debts would last, and what that looks like when added to your mortgage. Some debts, such as interest-free credit cards, might not be worth moving at all.
If this is something you’re considering, a mortgage advisor can go through your options and highlight the risks and benefits.
You might also want to look at reducing spending elsewhere or exploring family support before going ahead.
Refinancing or Expanding a Buy to Let Property
If you’re a landlord, a buy to let remortgage can help you switch to a better rate or access funds tied up in the property. The lender will usually look at the rental income along with the property’s value.
You might be looking to reinvest in your portfolio, fund improvements, or simply reduce costs.
Whatever the reason, there are tailored products designed for landlords with different types of properties and ownership structures.
Changing the Length of Your Mortgage Term
Remortgaging also gives you the chance to review the term of your mortgage. You might want to reduce it so your mortgage is paid off sooner, or extend it to lower your monthly payments.
This is often useful for clients who are approaching retirement, or whose interest-only mortgage is coming to an end.
Lenders will consider your income, age, and repayment plan to see what’s possible. Some also offer products designed for mortgages into retirement, which give added flexibility.
Dealing with More Specialist Circumstances
In some situations, the standard remortgage products don’t quite fit. You might be looking to refinance a secured loan, or you may own a house in multiple occupation (HMO) that requires more tailored lending.
These types of scenarios fall under specialist finance, and while they’re less common, there are still lenders that offer solutions.
If this sounds like your situation, we’ll look at what lenders need and find the most suitable route based on your circumstances.
Want to Talk Through Your Remortgage Options?
Whatever your reason for remortgaging, it helps to understand what’s possible before making a decision.
Whether you’re looking to save money, borrow more, or adjust your mortgage after a change in life, there’s likely an option that fits.
