Whether you’re a first-time homeowner or someone looking to make their mortgage work harder for them, remortgaging can be a powerful financial tool. With the right advice, you can save money, unlock equity, or find a deal that suits your changing lifestyle.

At Orchard Mortgage Solutions, we’re here to help you understand everything about remortgaging—clearly, simply, and without jargon. Let’s walk through how it works, why you might remortgage, and what it could mean for your finances.

What Is Remortgaging?

Remortgaging means taking out a new mortgage on a property you already own. This could be done with your current lender, or you might choose to switch to a new lender offering a better deal.

It’s not about moving home. Instead, it’s about moving your mortgage to better suit your needs, often to reduce costs or free up funds.

Common Reasons for Remortgaging

There are many reasons people consider remortgaging, and it’s not just about getting a cheaper rate—although that’s a big one! Let’s explore some of the most popular motivations:

1. Avoiding Your Lender’s Standard Variable Rate (SVR)

Once your initial fixed or tracker rate ends, you’re usually moved to your lender’s Standard Variable Rate. This rate is typically higher and can fluctuate. By remortgaging before this happens, you can lock in a better deal and keep your monthly payments low and predictable.

2. Home Improvements

Planning a new kitchen, loft conversion, or garden makeover? Many homeowners remortgage to release equity for home upgrades. Not only can this improve your living space, but it may also increase the value of your property.

3. Debt Consolidation

If you’re juggling credit cards or personal loans, remortgaging could help you combine your debts into one manageable monthly payment—often at a lower interest rate. It’s vital to get advice on this, as it involves securing debt against your home.

4. Paying for Life Milestones

Some people choose to remortgage to help fund major life expenses such as children’s university fees, wedding costs, or even starting a new business. If you’ve built up equity in your property, you might be able to access that money through a remortgage.

5. Buying a Buy-to-Let Property

Looking to start or grow a property portfolio? Remortgaging your main residence to release funds for a buy-to-let investment is a common strategy. With the right plan, it can offer long-term rental income and capital growth.

Can You Remortgage?

Yes—if you own your property, either outright or with an existing mortgage, remortgaging is an option.

However, lenders will look at a few key factors before approving a new deal:

• Affordability – Can you comfortably repay the new mortgage based on your income and outgoings?
• Age and term – Do you have enough working years left to repay the loan?
• Loan-to-Value (LTV) – How much you owe vs the value of your home. Most lenders prefer an LTV under 85%, but some accept up to 95%.

How the Remortgage Process Works

We make the process as smooth as possible. Here’s how it typically works:

1. Initial Chat – We’ll get to know you and your goals—whether it’s saving money, funding improvements, or consolidating debt.
2. Compare Deals – We search the whole of the market to find a remortgage deal that suits your situation.
3. Agreement in Principle (AIP) – Once we’ve found a good fit, we’ll help you secure an AIP, showing how much you could borrow.
4. Submit Application – We’ll guide you through your mortgage application, help prepare documents, and liaise with the lender on your behalf.
5. Valuation and Checks – The lender will assess your affordability and carry out a property valuation.
6. Offer Issued – If approved, you’ll receive a formal mortgage offer.
7. Completion – Your solicitor will handle the legal side and, if you’re borrowing more, funds will be transferred to you.

How Long Does Remortgaging Take?

Remortgaging is generally quicker than applying for a mortgage the first time. On average, it takes around 4 to 8 weeks—but it can be faster depending on your circumstances.

When Is the Right Time to Remortgage?

You can remortgage at any time, but timing can impact costs and savings:

• Before Your Fixed Deal Ends – Consider remortgaging a few months before your current deal expires to avoid your lender’s SVR.
• Check for Early Repayment Charges (ERCs) – Leaving a fixed deal early might come with a penalty. However, if you can save more with a new deal, it might still be worthwhile.
• Loan-to-Value Considerations – The more equity you have, the better the deals available. If you’ve just started paying off your mortgage, you may need to wait.

Costs Involved in Remortgaging

While remortgaging can save money in the long term, there are some fees to factor in. Here’s a breakdown:

• Exit Fee – Your current lender may charge an exit fee (typically £75–£300) to close your existing account.
• Arrangement/Completion Fee – Charged by some lenders for setting up a new mortgage. This can vary based on the mortgage type and size.
• Valuation Fee – If your new lender requires a property valuation, this might cost between £150 and £1,500. However, many lenders offer free valuations.
• Legal Fees – Some remortgages include free legal work, but if not, you may need to pay for a solicitor to manage the transfer of your mortgage.

We’ll always give you a clear picture of the costs upfront so there are no surprises.

Types of Mortgages You Can Choose When Remortgaging

You don’t have to stick with your current type of mortgage. When remortgaging, you could explore:

• Fixed-Rate Mortgage – Your repayments stay the same for a set term (usually 2, 3, or 5 years).
• Variable-Rate Mortgage – The rate can change depending on your lender’s standard variable rate.
• Tracker Mortgage – Moves in line with the Bank of England base rate, usually at a set margin above it.
• Capped Rate Mortgage – A variable rate, but with an upper limit (cap) on how high your repayments can go.
• Discounted Mortgage – A discount off the lender’s SVR for a set period.
• Offset Mortgage – Links your savings to your mortgage to reduce interest costs.

Can You Remortgage If You’re Self-Employed?

Yes, absolutely. If you’re self-employed, remortgaging is still possible—you just need to provide proof of your income, typically using:

• Your SA302 tax calculations
• Your full tax year overviews
• Or certified accounts if you’re a limited company director

Most lenders will want to see two to three years of figures to assess consistency and affordability.

Why Choose Orchard Mortgage Solutions?

At Orchard Mortgage Solutions, we’re passionate about helping you get the most out of your home and mortgage. We’ll:

• Search the whole market for you
• Offer friendly, expert advice
• Explain everything in plain English
• Manage the paperwork and deal with lenders
• Keep you informed every step of the way

Ready to Explore Your Remortgaging Options?

Whether you want to save money, fund a renovation, or invest in a second property, remortgaging could be the key to achieving your financial goals.

📞 Call us today 01257 543013 to speak with one of our expert advisers
📧 Or use our contact form to arrange a no-obligation consultation