How it works

Everything you need to know before exploring a new mortgage!

A remortgage involves switching your current mortgage to a new deal, arranged either with your existing lender or with a new one - usually with the aim of cutting your monthly repayments or to borrow additional funds.

Our step by step guide below is designed to help you along your way, with explanations of key terms provided in our glossary.

Why you should consider a remortgage

As a current homeowner you may want to think about a remortgage for a number of reasons:

  • To save money

    If you're paying your lender's Standard Variable Rate (SVR), then it is possible that you could reduce your monthly repayments by switching to a new promotional rate.

    Even if you are on a promotional rate with another lender, if you have no tie in penalties and your current mortgage rate is higher than other mortgages available to you, you could save money by remortgaging.

  • To raise money

    A rise in your income or an increase in your property's value means you could increase your mortgage to help pay for major expenditure like a car or wedding, rather than borrowing separately.

  • To avoid moving home

    It can be cheaper and more convenient to remortgage, freeing up funds to adapt or build an extension on your current home rather than move home.

  • To consolidate your debts

    Remortgaging can allow you to release some of the equity you hold in your home and consolidate your other debts, such as credit cards or maybe a car loan. Such loans can attract higher rates of interest than that of your mortgage.

When you should consider a remortgage

  • If your current mortgage is higher than the mortgages available to you and you have no penalties to leave your existing mortgage.
  • Even if you are on a promotional rate with another lender, if you have no tie in penalties and your current mortgage rate is higher than other mortgages available to you, you could save money by remortgaging.
  • When your home has risen in value since you bought it. A remortgage can provide a cost effective way of borrowing larger sums of money at lower mortgage rates of interest.

Things to consider

Remortgaging can be straightforward, but before you go ahead you need to consider the following:

  • If you're locked into a fixed term deal with your present lender, you may be liable for an early repayment charge that could negate some of your potential savings. You could also be charged a mortgage closing fee by your lender.
  • If you only have a small mortgage, then you might be better off staying with your current deal, as any savings could be cancelled out by the costs.
  • When comparing your old mortgage with a proposed new one, make sure that you measure apples for apples. Compare a repayment mortgage with another repayment one rather than an interest only loan.

The remortgage process

Arranging a remortgage is much simpler than buying a new home, not least because the deeds of the property are already registered in your name. There are just 5 simple steps…

Step 1

Decide why you want to remortgage. Is your goal to borrow more money? If so you need to make sure there is enough equity in your property. Or, are you simply looking to save money and get a better mortgage deal? Have a look at our range of mortgages to see if you could save money remortgaging with us.

Step 2

Ask your current lender for a redemption statement, and do the sums! There will be fees and charges involved so make sure the savings outweigh the costs.

Step 3

Examine our mortgage options and find the right deal for your circumstances. If you are not sure what mortgage you want, use our product selector, or call us on 0845 603 6096* to discuss your options.

Step 4

Ask us for a Key Facts Illustration for your chosen mortgage - this will tell you everything you need to know, helping you to make a decision.

Step 5

Once you've made up your mind which mortgage to go for, what happens next depends on whether you're staying with us or moving to us from another lender.

Lines are open Mon-Fri 8.30am - 6pm, Sat 10am-1pm. All calls will be recorded for training and monitoring purposes.

If you're an existing Bristol & West Mortgages customer and want to keep your mortgage with us, it's easy. Find out more here.

If you're with another lender and would like to move to us, there are just one or two extra steps involved.

  • We'll need a valuation to ensure the value of your property is sufficient for us to lend on. Property prices can fluctuate over a short space of time. Even if you're remortgaging only a year after purchase, you could still see a significant change in your home's value.
  • You'll have to make a formal application to us, just as if you were buying a property. The application must be underwritten by us, and we'll require evidence that the loan to date has been maintained. Then we'll issue you with an offer.
  • Conveyancing work will need to be carried out with local searches conducted and a report and title sent to us.
  • Finally, your solicitor will ensure that your previous lender is repaid when we release the new mortgage funds. If you're borrowing additional funds, your solicitor will release these to you on, or shortly after, completion.

Things to consider

How long have you owned your house?

Please note that to remortgage with Bristol & West Mortgages, the registered owner or proprietor must have owned the property for at least 12 months.

How long does it all take?

Because the title deeds are already in your name, the process is quicker than when buying from new. In fact, it can be taken care of in just a few weeks, assuming all the paperwork is correct and no unexpected problems arise along the way.

What are the costs involved?

The costs of a remortgage can be lower than when buying a property. In most cases the charges below either won't apply or will be lower than when you first purchased your mortgage, including:

  • Stamp duty - There is no Stamp Duty liability when remortgaging.
  • Legal fees - Solicitor's costs should be lower as the legal process is simpler for remortgaging than purchasing.
  • Homebuyer's report or survey - Assuming you undertook a Homebuyer's report or full structural survey when you purchased the property, it's unlikely that you will need to arrange another.
  • Other costs - other costs will apply (as below) but on some remortgage deals we will even meet some or all of these.

When considering a remortgage, bear in mind any early repayment charges that may apply on your present deal, and the extent to which (if at all) these would reduce the savings gained by remortgaging.

Many remortgaging costs are similar to those incurred when purchasing a property. These may include:

  • Early repayment charges (applicable in some cases).
  • Arrangement fees.
  • Booking fees.
  • Valuation fees.
  • Legal fees.
  • Higher Lender Charge (in some cases).
  • Discharge fees from your old lender (often called a 'sealing fee').

At Bristol & West Mortgages, we offer mortgages specifically designed to suit people remortgaging. Mortgages that have low or free arrangement fees, free legal fees for remortgages or free standard valuation fees. On some mortgages we also pay the Higher Lending Charge.

When shouldn't you remortgage

Many borrowers stand a good chance of saving money when remortgaging. But there will be some cases where applying for a remortgage is not a realistic or sensible option.

Where you have Early Repayment Charges

If you have recently taken out a fixed rate mortgage, or a discount mortgage, early repayment charges can make it too expensive to take your loan elsewhere in the first few years.

If you have a small mortgage

We only accept remortgage applications for a loan above a minimum level of £25,000. Fees may also be a problem with very small remortgage loans, as these may outweigh the savings available.

If your employment status has changed recently

All lenders need to feel sure you will be able to repay the loan, so we need to know your likely future income. If you have recently changed your work status from employee to self employed, but have not yet had time to build up a reasonable track record for your business, you may need to consider a Self Certification mortgage.