Published: 7 November 2023
What is remortgaging?
In a nutshell, remortgaging means taking out a new mortgage to replace the one you currently have.
There are lots of reasons why you might choose to remortgage. Usually, it’s done when a current mortgage deal is coming to an end. You can choose a new mortgage deal with a different lender or a new deal with the lender you’re currently with. Remortgaging also offers the opportunity to release equity, or borrow more money against your home, often done when someone wants to move up the property ladder or renovate their existing home.
What does it mean to remortgage your house?
If you remortgage, your new mortgage will replace your old one, and the remaining balance of your mortgage will be taken over by your new lender. There will be differences compared to the old mortgage deal, with things like repayment costs, interest rates, and term length likely to be different than before. If you shop around or use a broker, you’ll be able to compare remortgage options from various lenders, so you can choose a mortgage deal that best suits your circumstances.
To get an idea of how much your monthly payments may be, use our mortgage calculator.
How early can you remortgage your house?
You can remortgage at any time, but most people will wait until their current deal is coming to an end before considering their options. If you decide to remortgage before your deal is up, you may have to pay remortgage costs such as repayment charges or exit fees. These could add up, so check the terms of your current mortgage carefully.
How much does it cost to remortgage your house?
It’s likely there will always be some costs and remortgage fees, even if you decide to remortgage when your current deal is coming to an end. These could include:
- Arrangement fees – Usually the main fee lenders charge covering administration costs.
- Valuation fee – This can sometimes be free when remortgaging but they can vary.
- Broker fees – If you decide to use a broker to help you remortgage, they may charge you.
- Your new mortgage payments – On your new deal, you may pay more each month than you currently do.
- Product fee – a fee either paid upfront or added to the loan which can result in a lower rate.
The fees you get charged will depend on the deal you choose and your circumstances.
How long does it take to remortgage your house?
Once all paperwork and applications are complete, the actual process can take between 4-8 weeks, but it can vary based on your situation.
Where can I get remortgaging advice?
Talk to us if you need remortgage advice. Someone in our team will be able to help.
Book an appointment to discuss your options.
This guide is intended as a summary only and does not constitute legal or financial advice given by Leeds Building Society. No reliance should be placed on this guide. We recommend that you seek independent legal advice and/or financial advice if you have any questions or queries.
