Remortgaging can be a smart financial move—whether you’re looking to save money, release equity, or switch to a more suitable deal. But jumping into a new mortgage without doing your homework could cost you more in the long run. Before signing on the dotted line, it’s important to ask the right questions and fully understand your options.
Here are 10 key questions to ask before you remortgage, helping you make a confident and informed decision.
- Why am I remortgaging?
It sounds obvious, but it’s a crucial starting point. Are you looking to reduce your monthly payments? Release equity for home improvements? Consolidate debts? Or simply move to a better rate? Your reasons for remortgaging will help determine which products are most suitable. For example, if you’re planning to borrow more, not all lenders will offer the same flexibility.
Top Tip: Understanding your ‘why’ can lead to smarter decisions—and potentially significant savings over the life of your mortgage.
- When does my current mortgage deal end?
Timing is everything when it comes to remortgaging. If you’re on a fixed-rate or tracker mortgage, there may be early repayment charges (ERCs) for switching too soon. However, you can often begin the remortgage process 3–6 months before your deal ends to lock in a new rate ahead of time and avoid rolling onto your lender’s more expensive Standard Variable Rate (SVR).
- Are there early repayment charges or exit fees?
Check your current mortgage terms for any fees associated with leaving early. ERCs are usually a percentage of your outstanding balance and can run into the thousands. Don’t forget to check for an admin or exit fee as well, sometimes known as a ‘deeds release fee’.
Top Tip: In some cases, it may still be worth paying the fees if the savings on a new deal outweigh the costs.
- What is my current loan-to-value (LTV) ratio?
Your loan-to-value (LTV) is the percentage of your home’s value that you’re borrowing. The lower your LTV ratio, the better the rates you’ll be offered when looking at remortgage deals. If your home has increased in value or you’ve paid off a chunk of your mortgage, you might now qualify for a better mortgage rate bracket.
- What’s my credit score like?
Lenders use your credit score to assess your reliability as a borrower. If your credit has improved since you last took out a mortgage, you may be eligible for more competitive deals. On the flip side, if it’s dropped, it might limit your options. Check your credit file in advance using free services like Check My File or Experian.
- Do I want a fixed-rate or variable-rate mortgage?
Fixed-rate mortgages offer peace of mind with set monthly payments, while variable or tracker mortgages can offer lower initial rates—but they may rise (or fall) with the Bank of England base rate.
Ask yourself: Do I value certainty, or could I handle fluctuating payments? With interest rates changing frequently, getting expert advice can help weigh up the pros and cons.
- Am I planning any big changes soon?
Future plans matter. If you’re thinking of moving house, starting a family, or changing jobs, it could affect your affordability and which mortgage is best for you. Some lenders offer more flexible products that allow overpayments, payment holidays, or porting your mortgage to a new property.
- Do I want to borrow more money?
Remortgaging is often a chance to release equity for home improvements, debt consolidation, or other major expenses. If you’re looking to borrow more, your lender will reassess your affordability based on your income, credit history, and monthly expenses.
Important note: If you’re consolidating debts, always consider whether extending them over a longer mortgage term is really the most cost-effective solution.
- What are the fees involved in remortgaging?
Even if the new rate looks attractive, make sure you factor in all the fees. These can include valuation fees, arrangement fees, legal fees, and broker fees. Some lenders offer fee-free remortgage options that cover basic legal costs and valuation, which could save you hundreds.
- Should I use a mortgage broker?
Remortgaging isn’t always straightforward. A whole-of-market mortgage broker can help you find the best deal, explain complex terms, and guide you through the process from start to finish. They’ll also handle the paperwork and liaise with lenders on your behalf—saving you time and stress.
Bonus: Brokers, like HLC Mortgages, often have access to exclusive remortgage rates you won’t find on the high street.
Final Thoughts
Remortgaging is a brilliant way to take control of your finances, but it pays to be prepared. By asking these questions, you’ll be better equipped to make the right decision for your circumstances.
At HLC Mortgages, we make remortgaging simple. We’ll search the whole market for the best deals, walk you through your options in plain English, and handle all the paperwork. Whether you’re trying to save money or raise funds, we’ll make sure you get the mortgage that’s right for you.
Ready to remortgage with confidence?
Get in touch with HLC Mortgages today for a free consultation—or pop in and see us for a cuppa and a chat.