Steps to Remortgage

Step 1: Check Your Current Mortgage Details

The first step in any remortgage is to understand your existing mortgage inside and out. You need to know:

• Your current interest rate and the type of product you are on (fixed, tracker, discount, or SVR)
• When your deal expires — this is the date you will move onto the SVR if you do not remortgage
• Your outstanding balance — how much you still owe
• Any early repayment charges — fees you would pay if you leave your current deal before it ends
• Your remaining term — how many years you have left on your mortgage

You can find most of this information on your annual mortgage statement, your original mortgage offer, or by logging into your lender's online portal. If in doubt, call your lender and ask.

This step is essential because it gives you a baseline for comparison. You cannot know whether a new deal is better unless you understand exactly what you are currently paying.

Step 2: Assess Your Property Value and LTV

Your loan-to-value (LTV) ratio is one of the biggest factors in determining what remortgage rates are available to you. It is calculated by dividing your outstanding mortgage balance by your property's current value.

For example:

• Outstanding mortgage: £180,000
• Property value: £300,000
• LTV: 60%

Lenders offer their best rates to borrowers with lower LTVs, with key thresholds typically at 90%, 85%, 80%, 75%, and 60%. Even a small change in LTV — crossing from 76% to 75%, for example — can unlock noticeably better rates.

To estimate your property's value, you can:

• Check recent sale prices of similar properties in your area using online tools
• Ask local estate agents for a free valuation
• Use online property valuation tools (though these are only approximate)

Understanding your LTV helps you set realistic expectations about the rates you will be offered and can even influence whether it is worth overpaying slightly to cross a key LTV threshold before remortgaging.

Step 3: Research the Market and Seek Advice

With your current mortgage details and estimated LTV in hand, you are ready to explore what is available on the market. You have two main approaches:

Use a mortgage broker: A whole-of-market broker can search thousands of deals from hundreds of lenders, including products that are not available to consumers directly. They will assess your circumstances and recommend the most suitable options. This can save you considerable time and potentially money. Most brokers charge a fee, though some are fee-free (earning commission from the lender instead).

Research independently: You can use comparison websites and approach lenders directly. This gives you more control but requires more time and effort. You may also miss out on broker-only deals.

Whichever route you choose, consider the following when comparing deals:

• The headline interest rate
• Any arrangement, booking, or product fees
• Whether the deal includes free legal work and a free valuation
• The total cost over the deal period (rate plus fees)
• Any cashback offers or incentives
• The type of rate (fixed, tracker, or discount)

Do not forget to check what your existing lender is offering through a product transfer — this can sometimes be the simplest and most cost-effective option.

Step 4: Apply for Your New Mortgage

Once you have chosen a deal, it is time to make your formal application. This involves providing the lender with detailed information about yourself, your income, your outgoings, and your property. The typical documents you will need include:

• Proof of identity (passport or driving licence)
• Proof of address (utility bill or bank statement, usually less than three months old)
• Proof of income (recent payslips, P60, or SA302 forms for self-employed applicants)
• Bank statements (usually the last three months)
• Details of your current mortgage
• Information about any other debts or financial commitments

If you are using a broker, they will typically handle the application on your behalf, ensuring it is completed correctly and submitted with all the necessary supporting documents. This can significantly reduce the risk of delays caused by missing or incorrect information.

After your application is submitted, the lender will carry out credit checks and begin the underwriting process.

Step 5: Valuation, Underwriting, and Mortgage Offer

After your application is submitted, several processes run in parallel:

Valuation: The lender arranges a valuation of your property. This may be a desktop valuation (carried out remotely using property data and algorithms) or a physical inspection by a qualified surveyor. The purpose is to confirm that your property is worth enough to support the new mortgage. Many remortgage deals include a free valuation.

Underwriting: The lender's underwriting team reviews your application in detail. They check your income, expenditure, credit history, and the valuation report. They may come back with additional questions or requests — respond to these as quickly as possible to avoid delays.

Mortgage offer: If the underwriters are satisfied, the lender issues a formal mortgage offer. This document sets out the full terms of your new mortgage, including the interest rate, monthly payment, fees, and any conditions. Review this carefully and raise any questions with your broker or lender.

This stage typically takes two to four weeks, though it can be faster for straightforward applications.

Step 6: Legal Work and Completion

While the underwriting process is underway, legal work begins in the background:

Conveyancing: A solicitor or licensed conveyancer handles the legal aspects of transferring the mortgage. This includes conducting property searches, reviewing the title deeds, liaising with both lenders, and preparing the completion documents. Many remortgage deals include free legal work, with the lender appointing a solicitor from their panel.

Redemption statement: Your solicitor will request a redemption statement from your existing lender, which confirms exactly how much needs to be paid to clear your current mortgage on the planned completion date.

Completion: Once the mortgage offer is issued and the legal work is complete, your solicitor will arrange a completion date. On completion day, the new lender releases the mortgage funds, your solicitor uses them to pay off your old mortgage, and the new mortgage is registered against your property.

After completion, make sure you:

• Set up a direct debit for your new mortgage payments (if switching lenders)
• Keep all mortgage documents in a safe place
• Note down when your new deal expires so you can plan ahead for the next remortgage

Congratulations — your remortgage is complete, and you are on your new, hopefully more favourable, rate.