When to Remortgage

We’ve been helping our members for over 150 years and we will continue to offer help through the uncertain times ahead.  If you’re thinking of remortgaging your existing property, we have a range of remortgage products that could be suitable for you

Whether you want to cut your monthly payments, borrow more money or your personal circumstances have changed, there are many reasons you may be considering remortgaging your home.

Our remortgage guide covers every aspect of remortgaging: from how much you can remortgage your house for to what to do when your remortgage application is rejected.

What is a remortgage

A remortgage is the process of switching your existing mortgage on your home to a new lender. In simple terms, the new mortgage is used to pay off the existing mortgage, using the same property as security against the loan.

When to remortgage

In many cases, a remortgage is simply about changing to a mortgage that is more suitable for your current circumstances. But, how do you know when it’s the right time to remortgage your home?

There is no hard and fast rule when it comes to remortgaging, as the decision will always depend on lots of different factors. However, it’s especially worth thinking about remortgaging if you’re nearing the end of your current mortgage deal or if you’re on your lender’s standard variable rate as your lender’s standard variable rate is likely to be higher than other interest rates

Other reasons you may want to consider remortgaging your home:

You want to borrow more
Depending on the amount of equity you have in your home, remortgaging may allow you to release some of this and borrow more money on your mortgage for things like home improvements and perhaps even on a lower rate than your current deal.
 

You want to overpay
If your financial situation has changed and you want to pay extra on your monthly repayments, but your existing deal won’t let you, a remortgage may make a more suitable product available to you. Making overpayments to your mortgage will allow you to repay your mortgage quicker and also reduce the amount of interest you pay over the term. At Newcastle Building Society we offer flexible overpayment options on most of our products.
 

Your home’s value has increased by a significant amount
If the value of your property has increased rapidly, you may find you’re in a lower loan-to-value band and eligible for lower rates.

 

You want to switch from a repayment to interest-only 
In most cases, making the switch shouldn’t require remortgaging, your lender should be able to make the change for you. However, should you decide to change lenders it is worth checking that your chosen lender permits this as part of your application before you proceed.

Alternatively, there are many circumstances where remortgaging your home may not be the best option. For example, if your mortgage debt is small, you have little equity or you’ve had credit problems since taking out your last mortgage.


How much can I remortgage my house for?

You can get a rough idea of how much you can borrow using our mortgage affordability calculator. However, this should only be regarded as an estimate.

What to do when your remortgage application is rejected

When you choose to remortgage your home, the lender will assess your application using a set affordability criteria, including a full credit check. There may be other eligibility requirements depending in the type of mortgage applied for.

The purpose of this process is for the lender to determine how likely you are to meet the monthly repayments and also to ensure that, as a responsible lender, your mortgage is a realistic amount based on your income and outgoings.

Occasionally, lenders can reject mortgage applications. This may be because you have missed payments or made late payments recently, you have made too many credit applications, you’re not registered to vote on the electoral role, the lender has calculated you won’t be able to make repayments based on your affordability assessment, or a number of other reasons.

If you have been declined a remortgage, you will be informed by your lender as to why. At this point, you should address the reasons why your application was declined if you can. 

Should I pay off my mortgage early?

If you're remortgaging with a desire to pay off your mortgage early in mind, you may want to view our should I pay off my mortgage early guide as the answer to that quesiton may not be as straightforward as you think.

FAQs

Do I need a deposit to remortgage?

No, you do not need a deposit to remortgage however you must have sufficient equity in your home. 

Equity is the percentage of your home you already own.

How much does it cost to remortgage?

There are a number of fees and charges you may need to budget for depending on the type of mortgage you take and your personal situation. The types of fees include; 

  • Valuation fee
  • Reservation fee
  • Arrangement / completion fee
  • Legal fees

You should also check the terms and conditions of your current mortgage to find out whether there is an early repayment charge or / as well as an exit fee.

Before making a final decision, obtain a full mortgage redemption cost from your current lender and carefully check your new mortgage illustration, which will include the details of any costs involved.

Do you need a solicitor when remortgaging?

If you are switching lenders, you will require a solicitor or conveyancer to help with the legal side of things. Moving to a new rate or deal with your current lender is known as a product transfer and doesn’t require additional legal work.

If you choose to remortgage with Newcastle Building Society, you can benefit from our solicitor services. With us, you can enjoy no standard legal costs. Read our conveyancing services page to find out more.

What documents do I need to remortgage?

If you are remortgaging with a new lender, the documents you need to provide will be similar to when you applied for your first mortgage.

You will usually need to provide the following supporting documents/information with your application:

  • Details of the property
  • Details of your bank account
  • Proof of identity, such as a passport or driving licence
  • Proof of address, such as a council tax or utility bill
  • Proof of employment
  • Proof of your financial situation
  • Proof of your income, such as pay slips, P60, or your accounts if you are self-employed
  • Proof of your outgoings, such as bank statements, and including debts and loans
  • Proof of your assets, such as investments, other properties, or accounts

Whether you’re a new customer or an existing customer, our qualified team of mortgage advisors are always on hand to help and answer any questions you may have. Call us on the number below.

Your mortgage will be secured on your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

Thinking about remortgaging?

You can speak to one of our friendly mortgage advisers by calling

443456064488

9am - 5pm Monday to Friday (Calls to 03 numbers, cost the same as a call to a standard ‘01’ or ‘02’ landline number, even when calling from a mobile.)