If your mortgage deal is coming to an end – or already has – you might be paying more than you need to. Remortgaging is the process of switching your mortgage to a new deal, either with your existing lender or a different one, and it’s something worth reviewing regularly.
Here’s what you need to know.

Why Do People Remortgage?

The most common reason is that an initial deal – usually a fixed or tracker rate lasting two to five years – has come to an end. When it does, your mortgage typically rolls onto your lender’s standard variable rate, which is rarely their most competitive product.
Remortgaging can also make sense if:

• Your property has increased in value and you now have a lower loan-to-value (LTV) ratio, which could unlock better rates
• You want to borrow additional money, for example to fund home improvements
• Your circumstances have changed and a different type of mortgage would suit you better
• You want to consolidate other debts into your mortgage – though this requires careful consideration

When Should You Start Looking?

Ideally, start looking around three to six months before your current deal ends. Many mortgage offers are valid for between three and six months, so you can secure a new rate now and have it ready to go when your existing deal finishes.
Leaving it too late can mean rolling onto your lender’s standard variable rate unnecessarily. For many people, this can add hundreds of pounds to their monthly payments.

Will There Be Any Costs?

It depends on your timing. If you remortgage before your existing deal ends, you may face an early repayment charge. These are usually a percentage of the outstanding balance and can be significant – so it’s worth checking your mortgage documents or asking your current lender.
There may also be arrangement fees on the new mortgage, as well as legal and valuation costs. Some lenders offer free legal work and valuations as an incentive, and a good mortgage adviser will factor all of this into the comparison to make sure you’re genuinely better off.

Should You Stay with Your Current Lender?

You don’t have to move. Staying with your existing lender – known as a product transfer – can be quicker and simpler, and in some cases the rates are competitive. But it’s not always the best deal available, and you won’t know that unless you look at what else is on offer.
This is where a whole-of-market adviser adds real value. They can compare what your current lender is offering against the wider market and give you an honest assessment of whether it’s worth switching.

What If My Circumstances Have Changed?

Life doesn’t stand still, and lenders know that. Whether you’ve become self-employed, gone through a separation, had a change in income, or taken on other financial commitments, there will usually be options available to you. The key is getting advice from someone who knows the market and can match you to a lender whose criteria fits your situation.

How Do You Remortgage?

The process is broadly similar to applying for a mortgage in the first place. You’ll need to provide proof of income, bank statements, and details of the property. Your adviser will help with the paperwork and liaise with the lender on your behalf.
The good news is that remortgaging is generally less stressful than a purchase, because you’re not in a chain and there’s no deadline driven by a seller’s timeline.

Not Sure Where to Start?

If your deal is ending in the next few months – or if you’re already on your lender’s standard variable rate – it’s worth having a conversation. At Riviera Mortgages, we’re independent, whole-of-market advisers based in Torquay. We’ll take the time to understand your situation and help you find the right deal without any pressure.
Get in touch and we’ll walk you through your options.