Remortgage guide

Who is this guide for?

If your mortgage is your single biggest expenditure, cutting its cost is likely to be a big MoneySaver.

If you're a first-time buyer, then head over to our First-time buyers' mortgage guide instead.

What is in this guide?

If you want an overview before downloading the whole thing, here's a quick breakdown:

Chapter 1: Do you have a good reason to remortgage?

The biggest reason is to save yourself money, but it's not the only one. And remember, it's not about the best deal out there – it's about the best deal for you. Our Remortgage guide explains the reasons you might want to remortgage, which include:

• Saving money – for example, if you're on your lender's standard variable rate.

• Your mortgage doesn't fit any more – maybe you want a more flexible mortgage.

• You want to borrow more – but your current lender won't let you.

You'll need to be a good remortgage candidate. Our guide explains the importance of having decent equity, a good credit score and being able to cope if mortgage rates shot up.

Bear in mind you don't have to switch lender to get a new mortgage deal. You could get a product transfer from your current lender instead. See our Product transfers guide for more.

Chapter 2: Remortgaging won't be right for everyone

While remortgaging can cut your costs, it's not right for everyone – for some, it might not even be possible. Our Remortgage guide explains why this might be the case, such as:

• When you're already on a good mortgage rate.

• If remortgaging means paying an expensive early repayment charge.

• Where you need to borrow more than 90% of the value of your property, meaning the deals available are fewer and more expensive.

• If your circumstances have changed (for example, your income has reduced).

• If you currently have a bad credit score (see our Improve your credit score guide).

Chapter 3: How to prepare yourself to remortgage

Before remortgaging, there are THREE things you need to check about your current mortgage. Our Remortgage guide explains these checks in detail, but in brief:

• Will you be paying an early repayment charge? These can cost £1,000s and are charged if you leave your mortgage deal (such as a five-year fix) early.

• Will you be paying an exit fee? Expect to pay between £50 and £200.

• How much do you owe to your current mortgage lender? You need the exact figure.

This chapter also discusses how much lenders might let you borrow, who can get the cheapest deals, and how to lower your loan-to-value (which means better mortgage rates).

Chapter 4: Boost your chances of mortgage acceptance

Getting any type of mortgage is tough. You can't rest on your laurels just because you got a mortgage before. Our Remortgage guide explains how to boost your chances, such as:

• Getting your credit score in good shape – by joining the electoral roll, financially 'delinking' from exes, not missing repayments. Also see Improve your credit score.

• Proving you can afford it – by gathering evidence of your income and doing a money makeover. Also see our Money makeover guide for full details.

• Other tips, like putting down an extra £100 on top of your current equity, closing unused credit cards and staying out of your overdraft.

Consider signing up to MSE's Credit Club too. It not only offers free access to your TransUnion credit report, but also provides an estimate of your 'Credit Eligibility Rating'. Plus it'll indicate how much a mortgage lender might let you borrow.

Chapter 5: Are you self-employed or a contractor?

It's always been tougher for the self-employed to get a mortgage. Our Remortgage guide tells you what to expect, including what evidence you'll be required to provide.

Also see our Self-employed mortgages guide for full information.

Chapter 6: Decide what type of mortgage you want

Once you're confident a lender will lend to you, you'll need to consider what type of mortgage deal you want. Our Remortgage guide explains what's available, including:

• Repayment and interest-only mortgages.

• Fixed-rate and variable-rate mortgages (such as trackers).

• Offset mortgages.

• Portable mortgages.

Chapter 7: Moving home? You won't actually be remortgaging...

If you're moving home, it's not a remortgage you need – in fact, you won't necessarily even need a new mortgage. In the first instance, see if you can take your current mortgage with you (called 'porting' a mortgage). If you can't, you'll need to apply for a purchase mortgage.

Our Remortgage guide explains the options in full. Also see our Porting a mortgage guide.

Chapter 8: Don't forget about mortgage fees

The true cost of remortgaging is not just about the interest rate, as there'll likely be fees to pay too. Our Remortgage guide explains what these fees are, but in brief:

• Arrangement fee. To set up the new mortgage. This can set you back about £1,000.

• Booking fee. A few lenders charge a separate fee to reserve a mortgage deal, although it's increasingly rare. If it charges a booking fee, this'll cost between £100 and £200.

The good news is that valuation fees and legal fees are usually free with a remortgage. However, it's still important that you compare the cost of your current mortgage with your potential new one. Our Compare two mortgages calculator can help with this.

Chapter 9: How to get a remortgage deal step-by-step

You can apply for a remortgage deal in two ways: either direct to a lender, or via a broker.

Our Remortgage guide details how both options work, though using a broker is often best. This is because brokers can whittle down the top deals quickly, advise based on your circumstances, and sometimes can access special broker-only mortgage deals.

This chapter includes information on:

• How different brokers work and which deals they search.

• Which brokers are free and what questions to ask them.

• How to compare the widest range of mortgages if you're not using a broker.

Chapter 10: Watch out for the hard sell on insurance

This chapter tells you the insurance policies you may face the hard sell on, what you should expect to pay and how to find the cheapest products. The kinds of insurance include:

• Mortgage payment protection insurance.

• Buildings and contents insurance.

• Life cover.

Chapter 11: Remortgage Q&A

This chapter covers commonly asked questions, such as "What is a mortgage 'annual percentage rate' for?" and "Can I let out my home?"

If you're now ready to hunt for a remortgage deal, head to our Mortgage best buys tool, where you can compare deals and click through to a lender or broker to apply.

How comes this guide is free?

This guide is sponsored by fee-free mortgage broker L&C Mortgages. It's had nothing to do with the content, which purely depends on our view of the best way to save money while remortgaging. The guide is written with complete editorial independence and is focused solely on finding you the best deal, and this is enshrined in the contract with L&C.

Having said that, we've been independently listing L&C as one of the top brokers for many years now in our Cheap mortgage finding guide.

L&C sponsors this guide because it gets a one-time chance to include its own message promoting its service. But there isn't any follow-up advertising, marketing or other malarkey.

This is known as a payment for 'lead generation', and here that means L&C pays for the guide's production and a fee to this site. Read about this site's ethical financial stance.