How to Remortgage: A Simple Guide for Homeowners

If you're a homeowner, remortgaging can feel like one of those things you know you should probably do at some point - but aren’t quite sure when, why or how. Don’t worry, you're not alone.

Whether your fixed-rate deal is about to end, you're thinking of borrowing more, or you just want a better mortgage rate, this guide breaks down everything you need to know. And yes, Klink can help too.

 

What is Remortgaging?

Let’s start simple. Remortgaging means switching your existing mortgage to a new deal - either with your current lender or a new one. You're not moving house; you're just updating the loan on your current property to get a better mortgage rate, borrow more, or gain financial stability.

 

When Should You Remortgage?

Here are the most common reasons to consider a remortgage:

• Your fixed-rate mortgage is ending: If your deal is expiring, your lender will move you to their Standard Variable Rate (SVR), which is often much higher. Time to shop for a better mortgage rate!

• You want a lower mortgage rate: Interest rates fluctuate, and switching to a better deal can reduce your monthly payments.

• You want to borrow more: For example, to renovate your home or consolidate debts. You can remortgage to release equity.

• You want financial stability: Moving from a variable-rate mortgage to a fixed-rate deal can provide peace of mind with consistent payments.

 

How Does the Remortgage Process Work?

1. Review your current deal

   • Check when your fixed term ends.

   • Look out for early repayment charges (ERCs) or exit fees.

2. Check your equity

   • Your loan-to-value (LTV) is important. More equity usually means better rates.

3. Shop around

   • Use a mortgage broker to access the whole market or go direct if you’re confident.

4. Apply for a new deal

   • Be ready with documents: payslips, bank statements, ID, and mortgage details.

5. Get a valuation

   • The lender may want to check your home’s current value (sometimes this is automated).

6. Legal bits

   • If you’re switching lenders, you’ll need a solicitor or conveyancer. If you stay with your current lender, it’s usually quicker and more straightforward.

7. Switch over

   • Once approved, your new mortgage replaces the old one. Sorted.

 

Common Remortgage Pitfalls to Avoid

• Ignoring early repayment charges: Some fixed deals come with hefty ERCs if you leave too soon. Make sure the savings outweigh the cost.

• Not budgeting for fees: Arrangement fees, valuation fees, legal fees - they all add up. Some deals offer "fee-free" options, but always check the true cost over the mortgage term.

• Assuming your finances are fine: If you’ve had a credit blip or your income has changed, you might not get the deal you expected. Lenders re-assess your financial health.

• Forgetting to plan ahead: Start looking around 3-6 months before your deal ends so you don't fall onto the Standard Variable Rate (SVR).

 

How Klink Can Help

Even if you already own your home, Klink is your financial co-pilot. Here’s how:

• Mortgage Readiness Score: Like an MOT for your finances. Get insights into your spending and banking conduct so you can see what lenders might flag.

• Spending Insights: Spot patterns in your spending and see where you could free up cash before applying.

• Budgeting Tools: Stay on top of your money month to month.

• Home Goal Planning: You have your current home, but what about the next one our home goal can help plan for the next move.

• Education & Quizzes: Learn about remortgaging, interest rates, overpayments and more.

 

Final Thoughts

Remortgaging might sound complex, but it doesn’t have to be. With a bit of planning, a clear goal and the right tools, it could save you thousands over the life of your loan - or help you unlock money for the things you care about.

So, whether you're switching for a better deal, borrowing more, or just want to keep your finances sharp, make sure you're doing it with full confidence.

Download Klink today to track your finances, plan smarter and keep your home journey on the right track.