Complete Guide to Remortgaging in 2024 

Current Market Overview

Mortgage interest rates are higher compared to recent years, making your remortgage decision crucial. Our comprehensive guide helps you navigate current market conditions and find the best mortgage solution for your circumstances.

Is This Guide For You?

Perfect For:

- Homeowners with existing mortgages

- Those approaching the end of their current deal

- People looking to cut current mortgage costs

- Anyone wanting to consolidate debts

- Those whose current mortgage no longer suits their needs

Not For:

First-time buyers - Please see our First-time buyers' mortgage guide 

Essential Remortgage Chapters

A. Should You Remortgage?

Key Reasons to Consider Remortgaging:

• Your current deal with your mortgage provider is ending. It is advised to look at remortgaging between 3-6 months before the current agreement ends. This is usually the principal reason for a remortgage.

•  You can find a mortgage that better fits your needs. This could be switching from a standard variable rate. Depending on the current mortgage rates, you could save more by switching from one provider to another to benefit from favorable rates. 

• Access additional borrowing options. This is available if your property value has increased. You can borrow against the increased equity of your property, usually up to 75-85% of the property value. 

• Get better features (like overpayment allowances).  Flexible features such as unlimited overpayments, payment holidays, and reduced interest repayments, linking savings to the mortgage are other legitimate reasons for a remortgage. However, most mortgage providers give flexible deals to homeowners and accommodate some changes on the mortgage offers to keep them homeowners ( best to speak with the mortgage adviser and mortgage provider for suitable arrangements). 

• Consolidate other debts. This can be considered when homeowners have high, multiple high-interest debts, strong equity positions, stable income, and Good credit scores. 

Pros and Cons Analysis of consolidating debts through Remortgaging. 

Advantages:

• Single monthly payment

• Lower interest rate than personal loans/credit cards

• Simplified debt management

• Potentially lower monthly outgoings

Risks:

• Secured vs unsecured debt conversion

• Longer repayment term

• Potentially more interest over time

• Home at risk if payments not maintained

What You'll Need:

- Decent equity in your property. 

- Good credit score. 

- Proof of affordability for higher rates. 

- Clear understanding of your current mortgage terms. 

**Pro Tip:** Remember that switching lenders isn't always necessary. A 'product transfer' with your current lender might be the best option.

B.  When is Remortgage not right for you?

Warning Signs: This checklist helps you know that it's not ideal to remortgage.

- You're already on a competitive rate.

- Early repayment charges would be excessive.

- You need to borrow >90% of property value.

- Your financial circumstances have deteriorated.

- Your credit score has declined.

**Pro Tip:** It is essential to reveal these details to your mortgage adviser for them to make an informed decision  on how to get you the best mortgage deal and avoid delays further deals in the remortgaging process.