Is it wise to remortgage your house?

Is it wise to remortgage?

If you are coming to the end of your current mortgage, then it makes sense to shop around for more competitive mortgage deals rather than automatically sticking with the same lender. However, you may want to jump ship earlier – but is that necessarily a wise move, and why would you bother?

Homeowners choose to remortgage for various reasons, such as to save money, release money or take advantage of more flexible terms. If you remortgage before your current deal expires, you can expect to pay an early repayment charge, so it requires careful consideration.

There are many benefits of remortgaging your home, whether it is to secure a better rate of interest, to raise money for home improvements, or to consolidate various loans. Here at Bliss Financial, we have produced a helpful guide on what to consider when remortgaging.

When it comes to remortgaging, we have years of experience to help make remortgaging work for you. To find out more, please get in touch.

What does it mean to remortgage?

A remortgage is when an existing homeowner transfers their mortgage to a new mortgage lender or to another deal from their current lender. This could be due to the current mortgage deal coming to an end, but it is possible to remortgage early, say if a cheaper rate of interest catches your eye.

Why do people choose to remortgage their house?

There are many reasons for remortgaging, so let’s take a look at the most common scenarios:

To release money

The most common reason people choose to remortgage their home is to carry out home improvements. This involves borrowing more money from a new or existing mortgage lender. This obviously involves an increase in monthly payments, so it’s wise to make a thorough assessment of your financial situation before you commit.

To save money

Many people remortgage simply to save money on their monthly outgoings by moving to a deal with a lower interest rate or one with flexible payment terms. This is usually at the end of their current mortgage deal, but it can be before – although this often involves paying an early repayment fee and an exit fee.

If you are on a standard variable rate (SVR) deal that’s coming to an end, then it makes sense to explore your options to secure the best deal available and minimise your monthly payments.

When you remortgage, it may also be an option to consolidate your other debts, i.e. add them to your mortgage, to either reduce monthly repayments or improve your credit score. But be cautious that you are really getting a better deal in the long term.

To change your mortgage term

Another reason to remortgage is to reduce or extend your mortgage term or to make overpayments if the original loan has restrictions placed upon it. Or perhaps you have an interest-only deal, and you want to take out a repayment mortgage to start reducing your debt.

To move to a more flexible mortgage

Perhaps you’re looking to take a payment holiday in line with a career break or becoming self-employed, but beware that this kind of mortgage product is likely to come with charges.

How often should you remortgage?

Usually, homeowners remortgage when their current mortgage deal is coming to an end. This is a process that can be started up to 6 months in advance of your current deal’s end date.

This could be every 2,3, or 5 years, depending on your deal. Usually, if you have a fixed-rate deal, your mortgage will have a specific end date, at which time you will be free to remortgage without exit fees.

What to consider before remortgaging

If you’re looking to find a better mortgage deal when your current deal comes to an end or exit your current mortgage before it is due to expire, it requires very careful consideration. Your mortgage adviser or broker can work with you to decide if switching supports your financial goals and that you are comfortable with the repayments on the new mortgage.

Here’s what to consider when remortgaging:

Early repayment charges

Some mortgage lenders charge ERPs as much as 5% of the loan, so you need to do your sums to decide if a move to a different mortgage deal is actually worth it overall.

House price and loan-to-value

Has your house value increased or decreased since you took out your mortgage? If it’s gone up, then it could be very beneficial to switch as your loan-to-value (LTV) rate will have reduced, meaning that you will qualify for lower interest rates.

LTV is simply the ratio between the size of the loan and the value of the property. The more you have to borrow, the higher your LTV. If it is very high, it’s less likely that you’ll find a more competitive rate. If it’s low, it’s likely you can access some of the best deals on the market.

Interest rates

It’s easy to get spooked when interest rates rocket, but unless you’re on a tracker mortgage, an increase in the Bank of England base rate doesn’t always mean you’ll get a better deal elsewhere. While the interest rate is likely to affect your current mortgage rate, it’s not always the case, so it’s best to check with your lender first.

Outstanding loan amount

If you have a small mortgage debt left, say under £30,000, it may not be worth switching to a new deal or new lender because the fees will likely outweigh the savings.

Personal circumstances

It goes without saying that whatever mortgage decisions you make should support your financial and life goals, not just for now but for the future.

Be sure you have a thorough understanding of your financial situation to ensure you can keep up with mortgage repayments if your situation (e.g. work, family, health) were to change.

Frequently asked questions about remortgaging your house

What fees are involved in a remortgage?

During a remortgage, you may be subject to various fees, such as legal fees, product transfer fees, valuation fees, early repayment charges, and broker fees. Many lenders will cover the cost of the legal work by offering a free legal service which keeps costs down for you.

A broker will usually charge for their advice and for the administration involved in the remortgage application process.

Is it best to negotiate with an existing lender?

Most lenders offer what is known as a retention product or a product transfer. This is usually a specific interest rate they offer to their existing customers to entice them to stay.

In a lot of cases, these offerings are not as competitive as taking a new deal with new lenders. However, if you decide to move to a new lender, it’s important to consider the associated fees, which may make it more cost-effective to stick with the same lender after all.

Do you need a reason to remortgage?

You do not need a reason to remortgage, but usually, there is a reason to trigger you to remortgage, like the end of your current deal or the need to raise money. In any case, it’s only worth remortgaging if it makes financial sense to do so. That’s where a mortgage broker can really help.

If you are looking to secure lower mortgage payments, raise additional money or secure a better interest rate on the same property, then a broker can research the whole of the market to find you the best deals available to you.

Can you be refused a remortgage?

It is possible to be refused a remortgage. You should consider a remortgage as a brand-new mortgage application. The only difference is that you already own the property in this scenario.

There are many things which can cause a mortgage application to be refused, like credit issues, house valuations (including negative equity), and your overall financial situation. A broker will ensure you fit a lender’s criteria before you apply to save unnecessary time and hassle.

Get in touch with Bliss Financial before you remortgage

Whilst we have hoped to have covered all things remortgaging in this blog article, please take a look at our frequently asked questions here:

Here at Bliss Financial, we have years of experience in guiding our clients through the remortgage process. We take a genuine interest in our clients’ lives and goals and have their best interests at heart. So whatever reason you have for remortgaging, we can find you the best deals to fit your circumstances.

We’re here to help. For a friendly chat about your remortgage requirements, please get in touch.

Further reading, see whether a fixed or variable mortgage is best for you.

Picture of Amanda Marsden
Amanda Marsden

Amanda is the founder and owner of Bliss Financial. She has been helping clients with their mortgage and insurance needs for over 15 years. Her passion is to fully explore the options open to them and ensures the process is easy with no stress. She also specialises in helping clients invest in buy to let property and landlords.

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Selected from a number online because they stated that they have experience working with people from the military. This was essential given how moving on assignment often can be a negative for many banks when it comes to lending. Amanda was excellent and the process was swift and easy. We had planned to visit face to face but the process was just as high quality over zoom and phone.
Richard S.
Amanda is great, everything was explained clearly and always responsive to queries, would highly recommend.
Pavitar P.
This is my second time remortgaging through Bliss and Amanda. The service provided has made my life stress free and Amanda was thorough with her research into what deal and term would be best for me based on economic uncertainty and where I am atthis point of my life.I'd not use any other mortgage broker ✨
Harriet L.
Amanda was extremely knowledgeable and helpful from minute one. I am very grateful to her for diligently working within a fairly tight timeframe to identify and provide me with the right product.Her communication throughout was prompt and well-received. I look forward to using her services again.
James D.
Excellent service. Fully deserving of 5 stars. Nothing to fault. Great communication and everything went through in time with no issues. Would highly recommend Amanda Marsden.
Luke H.
Amanda was absolutely brilliant from start to finish. She helped us secure our forever home mortgageWould 100% recommend for anyone needing financial services of any kind!
James B.
Absolutely perfect service from start to finish, no stress, no hassle can’t recommend enough. Thankyou
sarah W.
We have used Amanda for many years. She knows exactly what she is talking about and offers the best advice. I cant recommend Amanda enough if you're thinking of getting a mortgage or going through a Re-Mortgage. She reassured us throughout the whole process and was in touch every step of the way. Thank you Amanda, here's to many more years.
David J.
Amanda was amazingly helpful and made the whole process hassle free. Even when I changed my mind a few times nothing was a problem and the end result was exactly what I was looking for. I would highly recommend Amanda and the team
Atha D.
We used Amanda a few years ago for our first mortgage. She was an absolute hero for us. She sat us down and explained everything thoroughly putting all out worries at ease as first time buyers. We had issues with our chain which meant our mortgage offer lapsed and Amanda was there every step of the way right through to the day we moved in. Due to remortgage in the next year or so and I will always go back to Amanda.
Anya K.
Once again very helpful and prompt in helping us with remortgaging our property, highly recommended
Natasha G.
Bliss WILL get you the best mortgage solution possible. The best mortgage broker around!!
michaela M.
Amanda was absolutely brilliant from start to finish. She helped me secure my first mortgage and also helped with organising the best deals on life and home insurance for my house. Would 100% recommend for anyone needing financial services of any kind!
Nathan C.
We specifically selected Bliss as financial advisors for our mortgage, as we'd read great reviews from other first time buyers. Amanda was so welcoming and helpful, introducing us to the whole process. We actually went to her thinking we were fish out of water, and wanting to but not expecting to but for a few years, just wanting to get our heads around it. However everything felt easy, quick and well explained and we were accepted for a within approx 2 months of starting our search. Amanda has been amazing throughout the entire process - even personalising the way she presented documents to us to suit our styles (me, needing to talk everything out and my partner more graphs and charts!). Evening appointments were organised to work around our work schedules. She was in constant communication with all stakeholders, chasing things up for us and since moving, also supporting with insurances. I'd highly recommend Bliss, and specifically Amanda for any financial advisory services however particularly first time buyers, as no question feels like a silly question. For future purchases, selling, and any other financial services - we will definitely return to Bliss.
Amber B.
Great service. Professional, friendly and efficient. Amanda did a great job in advising me and then finding and securing the best mortgage to suit my situation
Ed T.
Absolutely amazing service, couldn't have received any better. Very friendly and quick at replying to all enquiries. Very understanding of our circumstances which were difficult but still got us everything we needed for our new house. Thank you again Amanda, will be recommended you to everyone who needs a mortgage broker ☺️
Stacey G.
Amanda helped us to secure our first mortgage. She was on hand for support all the way through the process and very helpful in explaining things in a more simple way to help us to understand. She kept in contact with us regularly throughout the process and really made us feel at ease. We cannot thank Amanda enough for her support and help.
Annise M.
I came across Bliss financial solutions by google search when desperately trying to find a mortgage advisor who could do the impossible (secure a DiP quickly, that met my difficult short term self employment circumstances).Amanda from Bliss has been a pleasure to work with. The perfect balance of professional and friendly, incredibly organised and certainly not deterred by a challenge. I’m really grateful for the time and effort she put into my case to allow me to secure the house I wanted within the mandated timeframe. Thank you so much Amanda and Bliss for allowing us to get our new home 💜
heather U.
I just want to say how amazing Amanda at Bliss financial is!!. My partner and I were looking at buying a shared ownership prooerty and everything started happening very quickly ... but Amanda just took over from the start and literally kept me at ease the whole way . Herprofessionalism throughout was second to none and helped with every aspect of the process. Thanks to Amanda we now have the most beautiful home and we will be forever grateful for everything she has done for us. I would 100% recommend Bliss Financial.
charlotte C.
Excellent service. Amanda really took the stress out of remortgaging for us. Highly recommended
Amy G.
Switching mortgages has always been a frustrating and time consuming experience but using Bliss made the process seamless and most importantly stress free! They were excellent and I would highly recommend their services.
Neil G.
Amanda has been totally invaluable through our first home buying journey. Always on hand to answer the hundreds of questions with her excellent knowledge and guidance.I would absolutely recommend Bliss Financial Services.
Matt D.
We have been in our new house for nearly 2 months now all thanks to Bliss Financial Solutions, Amy was amazing sorting our new mortgage out and talking us through everything we needed to know. Very smooth process with good communications. Thank you very much. 🙂
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Exceptional customer service, professionalism and market knowledge.
George R.
Really excellent & supportive service from start to finish throughout mortgage process, from initial enquiry through to successful completion, friendly, knowledgeable and always happy to take time to answer any questions - great organisation.
Nella F.
Brilliant lady Amanda, always positive knowledgeable and helpful. Have no doubts in recommending her and Bliss Financial Solutions
Jeff W.
Very prompt and professional team. Helped us out no end! Highly recommended
Wayne C.
I would like to thank Bliss Financial Solutions for amazing, professional and swift responses during the process of my first home purchase.It has been an absolute pleasure each time I have met you and will 100% have no hesitation for contacting you again for future requirements and highly recommending you.
Paul K.
We have recently used Amy at Bliss to help us get a mortgage. After having a stressful time at high street banks and other mortgage brokers, we contacted Amy for help. Amy was absolutely excellent and the work she does is outstanding. Amy went above and beyond and managed to find us a mortgage in a matter of days. Throughout the whole process Amy kept us up to date and managed the mortgage application seamlessly despite a stressful time with other companies. I would like to express my many thanks to Amy and the team at Bliss for being so excellent and thanks to them we now have the keys to our new home.
My experience with Bliss Financial was excellent, everyone went above and beyond. Provided the best advice and more. Our mortgage was sort with out any stress. I will continue recommending to friends a family looking for mortgage advice.
emma W.
First class customer service, highly recommend Bliss Financial Solutions LTD to anyone that values a professional, efficient and personal approach. Being first time buyer my partner and I had very limited knowledge around mortgages and all things connected. Amanda and her team went above and beyond to ensure we understood everything and provided advice when we had any questions with immediate response. Bliss financial limited we thank-you kindly for making the whole mortgage process so easy, you took all the strain off us especially need due to the birth of our daughter 3 weeks ago you made the mortgage process easy and hassle free. I will definitely be a customer for life and if there is anyway I can share your company’s profile on social media please let me know as I would love to recommend your service to others.Many thanks Melissa Hodgson, Andrew and Eloise - three very happy customers 😊
Melissa H.
Amy and the team were absolutely amazing! Nothing was too big. We didn't really know much about the process and Amy explained everything so we fully understood! We couldn't have done it without the team 100% would recommend to anyone! Thank you all so much ❤️
Rebekah F.
We used Bliss to re morgage our property. Amy was absolutely fantastic, made everything feel really easy, she was clear in all her explanations, open and honest with setting expectations, and really knowledgeable. The whole process was really smooth. We also discussed life insurance which was something of a priority giving we had just had a little boy recently. Amazing service. Would highly recommend. We will definitely be using again for any future mortgage or insurance needs.
Lauren A.
Excellent service, they really came to the rescue after being messed about by our current lender, amazing absolutely amazing. Just wish we went to them sooner would have saved a big headache 😃
Michael C.
Efficient and friendly. The team helped source the most appropriate mortgage for us at a very busy and pressured time for interest rates and timeframes. They were very helpful in expediting the completion when our solicitors were holding up proceedings. The little gift afterwards was much appreciated also. Would recommend.
Kirsty T.
Bliss Financials was a vital part of my journey to home ownership in the UK. They always gave personalized yet professional advice and were always accessible and responsive all through the process. They were very thorough, transparent and client centered; offered and discussed all the available options to enable me make an informed choice. I would totally and wholeheartedly recommend their services and I am very grateful to Amy who handled most of the process as well as Amanda and Sophie. Great team/firm!
Nwosa C.
I would like to praise the excellent service of the Bliss Financial Solutions LTD.I have a brilliant experience with this company. I was buying a house for the first time and Bliss Financial advised me on every step of the process (mortgage, insurance), offering me suitable options that I could choose from. I always got great offers and still was in control.All members of the team (Amy, Sophie, Amanda) are brilliant, very professional, friendly and responsive.I am very grateful to Amy (my consultant) as she did help me very much throughout the process, nothing was a problem,I received responses straight away and she also prompted other parties to act swiftly (lender, insurance companies, solicitor, etc.).If I need mortgage or insurance in future, I will definitely ask Bliss Financial for help again.
Michal P.
I am now on my second mortgage which was arranged using Bliss. What an outstanding service. From start to finish the Bliss team were great in answering queries that I had. They even pushed to get me an extension to my offer seeing me secure a great rate before the recent rises. This certainly helped me secure my dream home. I would recommend Bliss to anyone who is after a professional and personable mortgage advisor.
Amanda worked extremely hard and was really efficient is securing a fixed deal for me at a time when rates were being removed across the board. I would recommend them to anyone.
Andrew M.
Excellent from start to finish. Every decision and option were made clear to us about the implications and any questions we had were answered in a timely manner, making remortgaging easier than I imagined it would be. Thank you to Bliss Financial Solutions for excellent service and attention to personal details that really made us feel like our priorities were put first. We will use again at our next remortgage and would recommend to anyone.
Melissa B.
Excellent company, fast and responsive and a professional outfitI appreciate Amy’s swift advice on a deal to secure a good rate 12hrs before the rate changed
Adam L.
What a fantastic service. I contacted Amanda via a friend recommendation. She was friendly and helpful. She passed me to Amy who was my advisor for the whole process.As a first time buyer, I was like a rabbit in the headlights. But Amy reassured me and made the whole thing a breeze, with regular contact and updates along the way.Thank you to you all.Highly recommend 😁See you when it's time to remortgage 😉
Steven R.
We have used Bliss/Amanda for a number of mortgages now and the service has always been second to none!We have had complicated financial situations that the Bliss team have used their extensive knowledge to support and ensure we receive the best product for us.We always recommend Bliss to all our friends and family!Thank you to Amanda, Amy and Sophie
Samantha B.
The staff are amazing and very helpful throughout the whole process, the rates are very competitive and the after sales service is second to none, I would highly recommend Bliss Financial to anyone.MarkAspire Property Rentals
Mark L.
Any Lyons found us an excellent mortgage deal and then helped us through a long complex legal process regarding the house. She was there for us all the way through keeping us informed and chasing up when there were delays, Thank you Amy and her team.
Ken W.
Amy has been amazing from the start of our process as first time buyers until completion. We had a few delays along the way due to waiting on a new build but Any was there to guide us through every step of the way to help us rearrange another mortgage and kept us regularly updated on the process. I have already recommended her to friends and family and wouldn’t hesitate to use her again when we remortgage.
Melissa N.
Really happy with the service from Amy and Bliss Financial Solutions - Amy made sure everything was as straight forward as possible, was super communicative and really easy to deal with. Would not hesitate to recommend them.
Rachael G.
Amanda was very helpful. Gave advice over a number of options for my situation. Many other companies didn't even bother calling me back. Will definitely go back to Bliss again in the future.
Lesley C.
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