Remortgage your house with us
Lower your monthly repayments or release equity for a lump sum toward home improvements. Remortgaging your property could be the right move for you.
Your mortgage is probably your biggest monthly expense, but by moving to a new lender with lower rates, we could help you save money on repayments. Let’s take the hassle out of switching – use our remortgage calculator to get started.
- Lower your monthly payment, depending on circumstances.
- Save on the interest paid over the term of your current mortgage deal.
- Get help with finding the right product for your needs from our friendly, experienced customer service team.
- Check your eligibility without affecting your credit score with Norton Finance’s soft search.
Remortgage your house with us
Lower your monthly repayments or release equity for a lump sum toward home improvements. Remortgaging your property could be the right move for you.
Your mortgage is probably your biggest monthly expense, but by moving to a new lender with lower rates, we could help you save money on repayments. Let’s take the hassle out of switching – use our remortgage calculator to get started.
- Lower your monthly payment, depending on circumstances.
- Save on the interest paid over the term of your current mortgage deal.
- Get help with finding the right product for your needs from our friendly, experienced customer service team.
- Check your eligibility without affecting your credit score with Norton Finance’s soft search.
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What is remortgaging?
Remortgaging is when you replace your existing mortgage plan with new terms. It could help you find a better deal and reduce your monthly mortgage payments, while also freeing up funds for home improvements or life’s important moments – like a wedding.
Reasons to remortgage
There are several reasons to remortgage, from homeowners who’ve seen an increase in market value to those looking to improve their home.
If your property is worth more now, considering your mortgage repayments against the estimate increase, you may want to renegotiate the terms of your mortgage.
Before looking into this, it’s worth knowing your equity, for example:
- Your home is currently worth £250,000.
- You still have an outstanding mortgage of £180,000.
- This means the equity in your home as it stands is £70,000.
You can use this equity value to calculate your loan-to-value rate (LTV), which is given as a percentage. A lower LTV rate can be a great way to secure lower interest rates on your remortgage deal. This may mean:
- Lower monthly instalment going forward.
- Money saved on paying interest over the term of your mortgage.
The alternative is to borrow more money than you currently owe against the value of your home. You’ll receive the difference as a lump sum in your bank account to use for your chosen purpose.
There are alternatives though, and remortgaging doesn’t always rely on increases in market value. Whether it’s for a holiday, home renovation, or your business, there’s options to suit you.
Before you apply…
Remortgaging is about using your current financial situation to save money on mortgage repayments or raise some much-needed cash as a lump sum.
You’ll benefit from applying for a remortgage if your financial situation is improving. However, if your home has decreased in value or your credit report has been negatively impacted, you could end up paying more per month than you set out to.
Am I eligible for a remortgage?
Your eligibility for a remortgage depends on a few factors such as:
- How much equity you currently have in your home.
- The current value of your house.
- Your own financial situation.
These factors can also determine how much you can borrow. With LendingSwing, this could vary anywhere between £5,000 to £500,000.
Lenders have their own criteria when deciding your remortgage terms, but by working with a wide range of lenders we can try to find a loan that suits your specific circumstances.
Costs of Remortgaging
There may be fees involved when it comes to remortgaging. The process often requires contractual changes, so it’s important to consider these before deciding whether to remortgage.
Switching lenders could incur an early repayment charge if you’re still fixed into a deal, meaning you must pay your old lender for moving your mortgage. For example, a fixed rate mortgage will normally have an early repayment charge if you repay or change your mortgage during the initial fixed-rate period.
Some mortgages may have administration charges to consider, including booking, valuation, and conveyancing costs. Not all lenders will charge these, but you may want to look into it before making any commitments. When you apply for a remortgage with us, we’ll make clear all the possible fees you could face at each stage of the remortgage process.
Pros and cons of Remortgaging
Like any important decision in life, you should weigh up the pros and cons of remortgaging before making the big commitment.
Pros of remortgaging
- Raise additional funds
Whether it’s increasing the resale value of your property with a new extension or financing a wedding, you can free up funds against your property, giving you a lump sum to spend as you need. - You may find a better rate
With property values increasing over time, your home may be worth more than when you bought it. By getting a remortgage quote, you can often find a much cheaper rate, meaning you could potentially save on the interest you’re paying.
Cons of remortgaging
- There are fees to consider
When switching lenders, you may have to pay your original lender a penalty fee. This is called an Early Repayment Charge. Not all mortgages have Early Repayment Charges – it will depend on the type of product you have – so it’s important to see whether any potential costs outweigh the benefits you’ll get from any cash sum or new repayment plan. - You don’t have much equity yet
If you’ve only just purchased your home or don’t have much equity invested yet, it’s unlikely you’ll find a better rate. You may find it’s worth waiting until you’ve paid off more of your mortgage before considering a switch.
Types of remortgages
There are different types of remortgage loan, so see below to help you decide which one is right for you:
Buy to let remortgages
You can remortgage your buy to let property, helping you to secure better terms and free-up cash.
Business remortgages
Consolidation remortgages
Raise money to help cover the cost of other debts by remortgaging your property.
With a consolidation remortgage, you can raise money to aid in covering the costs of other debts.
Bad credit remortgages
Bad credit remortgages offer flexible loan terms, provided you can meet the repayment threshold.
Home improvements remortgages
Release some of the equity in your property as a lump sum to spend on home improvements through remortgaging.
Frequently Asked Questions
Still unsure whether remortgaging is the right move? We’ve compiled answers to the more common questions we get asked at LendingSwing.
Our flexible repayment terms range from 1 to 40 years.
If you’re remortgaging with the same lender, they’ll handle the legal work. However, if you’re switching for a better rate elsewhere or want to release a cash lump sum, a conveyancing solicitor can assist with all the legal paperwork. This is sometimes provided from the lender’s own panel of solicitors.
You’ll need to get a valuation on your property or know what it is currently worth. This will give you an idea of how much you may be able to borrow and if you could find a better deal elsewhere.
You can pay off a remortgage in full at any time during the agreement – but most lenders will charge an Early Repayment Fee if stated in your original mortgage contract. It’s worth considering if these fees will make early repayment worth it.
There’s a lot to consider when it comes to getting a remortgage quote. That’s why we’ve tried to make the process as easy as possible for all homeowners.
What can I use a remortgage for?
Home improvements
You could release funds for refreshing the kitchen, converting a downstairs bathroom, or another project.
Cash lump sum
Whether it’s planning a dream wedding or helping family through university, a cash lump sum can sometimes come in handy during life’s big moments.
Extension or loft conversion
You could increase your profits when it’s time to sell by remortgaging now to finance big home improvement projects.
Buying another property
Purchasing a second property for rental can be a good source of income.