Remortgaging is the process of switching your existing mortgage to a new deal, using the same property as security. You can remortgage with the same lender or a different provider – you’re not moving home and your new mortgage will still be secured against your existing property.
What will it cost to leave your current mortgage?
Some mortgages include charges when you leave under certain circumstances, such as an exit fee or early repayment charge. This could be thousands of pounds if your current mortgage deal hasn’t ended, so check the documents you received from your current lender or contact them for details.
To make sure remortgaging leaves you better off, check whether the lender you plan to move your mortgage to charges any of the following.
- Application fee – a charge to set up your new mortgage. Also referred to as an arrangement, product or booking fee
- Valuation fee – to confirm the value of your property
- Solicitor’s fee – a solicitor will need to manage the transfer of your mortgage
Ask any prospective lenders if you’d need to pay an exit fee or early repayment fee if you want to remortgage again in the future.