★ Compare remortgage deals ★ Check product transfer options ★ Borrow more if needed ★ Whole-of-market advice
Remortgage
Advice
Drummonds Finance Group
Fixed rate ending or need to raise money? A remortgage moves your mortgage to a new lender to secure a better rate, release equity or consolidate debt. We compare deals across the whole market to keep your payments as low as possible, for clients across the UK.
At Drummonds Finance Group, we compare your current lender’s options with remortgage deals from across the market.
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What is a remortgage?
A remortgage is when you take out a new mortgage on the home you already own, either to replace your existing mortgage with a better deal or to borrow more against it. The new lender pays off your old mortgage, and you then make payments to the new lender.
Unlike a switch with your current lender, a remortgage is a full application. The new lender checks your income, credit file and the property, and a solicitor handles the legal work.
Why Choose Drummonds for Remortgaging
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Whole-of-Market Access
We can compare remortgage options across a wide range of lenders, not just the bank you are already with.
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We compare the total cost, not just the rate
A lower interest rate is not always the cheapest option once product fees and other costs are included. We compare the overall cost so you can make a more informed decision.
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Clear, straightforward advice
We explain your options in plain English so you understand the rates, fees and potential costs before making a decision.
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We check whether staying with your current lender is better
Sometimes a product transfer can be more suitable than remortgaging. We can compare both options before you decide.
Specialist Mortgages
Not every mortgage fits a lender's computer model. Much of our work at Drummonds Finance Group is with clients who have been turned down elsewhere or told their case is too complicated. We work with clients across the UK by phone and video, and we know which lenders will look at each situation properly.
The most common time is when your fixed or tracker rate is coming to an end. You can usually apply up to six months before your deal ends, and most mortgage offers last about six months, so you can secure a rate now and complete on the day your current deal finishes.
It can also make sense when you are already on your lender's standard variable rate, when your home has gone up in value, and you have moved into a lower loan-to-value band, or when you need to raise money for something specific.
Remortgaging in the middle of a fixed rate usually means paying an early repayment charge, so it only works if the saving or the money you need outweighs that cost. We work that out before you apply.
How much could you save by remortgaging?
As an illustration, on a £200,000 repayment mortgage over 25 years, a variable rate of 7.5% costs around £1,478 a month. A fixed rate of 4.4% would cost around £1,100, a saving of roughly £378 a month. These figures are for illustration only, and your rate will depend on your circumstances.
The headline rate is not the whole story. We compare product fees, cashback, any lender-paid legal work and valuation, and the length of the deal, so you see the true cost over the period you are tied in.
Remortgage or product transfer: which should you choose?
Staying with your current lender on a mortgage product transfer is quicker and simpler, and often better if your income or credit has changed. Remortgaging to a new lender makes sense when it saves you more overall, or when you need to borrow more or change who is on the mortgage.
We price both side by side before recommending either.
Can you remortgage to release equity?
Yes. If your home is worth more than you owe, you can remortgage for a larger amount and take the difference as cash. Most lenders cap this kind of borrowing at a lower loan-to-value than they would for a purchase, and they will ask what the money is for.
Common reasons include home improvements and extensions, helping a child with a deposit, buying a buy-to-let property, paying a lump sum on a divorce settlement, and some business purposes, though lenders vary on which they accept.
Borrowing more means your income has to support the larger mortgage, and higher earners or certain professions may be able to borrow at 5x and 6x income.
Can you remortgage to consolidate debt?
Many lenders let you raise money to pay off credit cards, loans or car finance, which can cut your monthly outgoings because a mortgage is usually cheaper and spread over a longer term.
The trade-off is that you may pay more interest overall, because the debt is repaid over many more years, and it is now secured against your home. We look at whether consolidation genuinely helps, which debts are worth including, and whether you would be better off clearing some another way.
Think carefully before securing other debts against your home. Consolidating debt may increase the total amount you repay and the length of time you repay it over.
Can you remortgage to buy out a partner?
Yes. If you are separating, or a co-owner wants to leave, you can remortgage into your sole name and borrow enough to pay them their share. This is called a transfer of equity, and it needs legal work as well as a full mortgage application.
The key question is whether your income alone supports the mortgage. Some lenders accept maintenance payments, child maintenance, and benefit income, and a family member can sometimes help through a joint borrower sole proprietor mortgage.
Can you remortgage with bad credit or a change in income?
Often, yes. A new lender will assess your current circumstances, so missed payments, defaults or CCJs since you took out your mortgage can narrow your choice. Specialist lenders consider adverse credit depending on how recent and how serious it is.
The same applies if you have become self-employed, moved onto contracting, are nearing retirement (mortgage age limits), or own a property some lenders avoid, such as a flat needing an EWS1 form or one above a shop. If a remortgage is not possible, a product transfer with your current lender is usually still available.
How much does it cost to remortgage?
The usual costs are a lender product fee, a valuation, legal fees and any early repayment charge on your current deal. Many remortgage products include a basic valuation and standard legal work paid for by the lender, which can make a big difference on smaller loans.
Your current lender may also charge an exit or deeds fee. We explain our own fee before any work starts and include every cost in the comparison.
How long does a remortgage take?
Most remortgages take four to eight weeks from application to completion. Straightforward cases with a desktop valuation can be quicker, while complex income, buying out a partner or a property that needs a full valuation can take longer. Starting three to six months before your deal ends leaves plenty of room.
Remortgaging a buy-to-let or limited company property
Landlords remortgage for the same reasons as homeowners, plus to raise money for further purchases. The lender will assess rental income against the new rate rather than just your personal income, and limited company remortgages have their own lender range. See our buy-to-let mortgage advice page for more.
How the remortgage process works
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We review your current deal, your end date and any early repayment charge, and talk through what you want to achieve.
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We compare remortgage deals across the market alongside your lender's product transfer options.
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We get a decision in principle and submit the full application to the chosen lender.
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The lender values the property and issues your mortgage offer, and the solicitor completes the legal work.
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On completion, the new lender repays your old mortgage, and we set a reminder for your next end date.
Frequently asked questions
Author
Written by Liam Drummond CII (MP), owner and named mortgage broker at Drummonds Finance Group. Member of the Personal Finance Society, the Society of Mortgage Professionals and the Chartered Insurance Institute.
On this page we have explained what a remortgage is, when to remortgage and how much you could save. We have covered how remortgaging compares with a product transfer, how to release equity, consolidate debt or buy out a partner, and what happens if your credit or income has changed. We have also looked at the costs, how long a remortgage takes, remortgaging buy-to-let and limited company properties, and how our process works from start to finish.