A remortgage is a financial solution that allows individuals to refinance their existing mortgage by switching to a new lender or product. There are several types of remortgages available, such as fixed-rate, variable-rate and tracker mortgages. People may choose to remortgage for various reasons including wanting to reduce monthly repayments, release equity in their property or switch from an interest-only mortgage to a repayment one. The stages involved in applying for a remortgage include researching the market, seeking professional advice, completing an application form and undergoing credit checks with the new lender.
The process varies between lenders but typically involves providing information on income and outgoings as well as details about the property being mortgaged. Timescales involved can vary depending on the complexity of individual cases but can range from weeks to months. Core costs involved in remortgaging include arrangement fees, valuation fees and legal fees while other associated costs may be incurred depending on individual circumstances such as early repayment charges or exit fees from existing mortgages.