First Time Remortgage

What happens to my existing mortgage when I remortgage?

This can be confusing. The banks talk to each other through your solicitor, but often the new lender covers the cost of that.

It’s not the same as when you purchase a property and have a legal bill and lots of paperwork. But you still have a solicitor and they will control the switch. They ask one bank to tell them how much you owe them, and the new bank takes over that debt.

Most often it’s free of charge, unless there’s something complicated about it, in which case you might have to pay a slight premium.

What happens if I don’t remortgage after my deal expires?

If you don’t remortgage, you just stay with your current bank – but you’ll fall off your current deal and go onto a variable rate.

I’m big on money tracking and I talk about this a lot. It’s important to keep on top of your mortgage. Also, your advisor should remind you that remortgage is coming up in six months and book you in for a chat.

If not, talking to a new advisor might be better. You should be being monitored while you’re on your mortgage. It’s not one and done. You should be with your advisor for a lifetime.

If you don’t remortgage and let it roll up, you’re definitely going to see your bank balance fall and your direct debit go up. If you see that direct debit change, try and find your mortgage offer in your emails and give an advisor a call. They’ll help you navigate what to do next.

Should I stay with my current lender when remortgaging for the first time?

I would say no, but a lot of people do. It seems easier – they’re overwhelmed and they don’t know what to do. Perhaps they think that it’s going to be just like the purchase all over again.

You should definitely not just stay with your current lender, but you do always have the option to. Your advisor will tell you if it’s the best thing to do. When we look at mortgage options we can see your current lender as well – and we make sure that we’ve looked at your product transfer options.

For some people, it is best to stay with their current lender, and just switch to whatever they have on offer at that time. That’s called a product transfer or a product switch. But only do that when you’ve double checked the rest of the market.

Can I remortgage if I’ve had bad credit since taking my initial mortgage? Can I remortgage for the first time to consolidate my debts?

Yes, you can remortgage if you have bad credit since taking out your initial mortgage, but you may get a higher rate than you’re used to. You will have to declare what’s happened and that can impact the rates we can get for you, and the lenders we work with.

You might be remortgaging for the first time and you want to consolidate your debts. That’s something people often do. They spend money on their new home to get that kitchen they love, or buy bits and pieces on a credit card. It stacks up and becomes hard to repay. That’s how life is sometimes.

You can absolutely consolidate using your remortgage, but we would give lots of advice before we resort to that option. We might help you with some money management before we resort to that.

Perhaps you don’t like having lots of direct debits and just want to have one, and reset the system. That’s a good enough reason. But as advisors we’ll point out the facts around why that might be a good idea, or it might not be the cheapest and best option for you.

How much could I potentially save if it’s my first remortgage?

It depends when you got your first mortgage. If you were one of the many people who bought during COVID, you’re not going to save anything, I’m afraid. You’re going to actually be spending more as we speak in June 2025.

But if you remortgaged a couple of years ago in 2022 or 2023, you’re probably going to gain a lower interest rate with your remortgage. I can’t tell you how much you can potentially save, but I can tell you if you’ll make a saving or concede that you won’t.

What documentation will I need to provide when remortgaging for the first time?

There are no major differences unless you’re doing a product transfer – in which case you don’t need to supply as many documents. If you’ve worked with your advisor before, they may have your proof of ID on file, saving you having to do that again.

However, the solicitors will need documents too. I hate to say it, but remortgaging is still a document heavy process. You need proof of ID, proof of residency and proof of income, via payslips if you’re employed or accounts if you’re self-employed. We also need bank statements, maybe a P60 and maybe a credit report.

It’s never as bad as you think. You could save all the documents into a folder. I did this and it was much easier – when I then did the solicitor paperwork, I had it all there. It pays to be prepared and organised.

Will I need a new valuation or survey when remortgaging?

You will. Sometimes it’s not an in-person valuation. They do a lot of automated valuations when it comes to a remortgage, using tech and data about an area, a road and previous sale prices. We can give you an idea of that as advisors, as well.

If you have really improved your property since you bought it, and that automated valuation is not giving credit to all the work, you can reject that valuation and request a real, in-person one. More often than not, they’re free.

It can be important to do that, because even in a slower market like today, property prices have still gone up by 3.5% to 4% year on year [podcast recorded in June 2025]. So you should see an increase in your house price, and it’s good to know how much equity you’ve got. Every bit of equity can make a difference on the rate you pay.

What happens if my property value has decreased since I initially obtained my mortgage?

It’s a tough thing if that happens, and of course, it can. It’s rare – in the UK, we’re looking at growth each year, even if it’s minimal.

It really depends how much equity you’ve got in the property. You don’t want to fall into a worse category. Let’s imagine you put 10% in to buy your house, and then a couple of years later, it’s worth less. We’re hoping you’ve still got 10% in the property, as you’ve made payments on that mortgage in that time.

If you hadn’t made enough payments to hit 10%, you’d be looking at a different rate threshold – rates that require a 5% deposit, unless you can put money into your property.

That’s not a position most people want to be in, because rates go up for every 5% less deposit or equity. It doesn’t mean that you’re going to be stuck, but you would need some good advice. It might mean paying off more of your mortgage to get rates in the same category, or just acknowledging that you’ll be paying a higher rate.

I haven’t seen this happen for a very long time, though. I had negative equity myself – I bought a flat in 2008 and within three months, the credit crunch happened. I had a 100% mortgage and the property was suddenly worth 25% less than when I bought it.

I couldn’t remortgage it because I didn’t want to put money into the house. And because it was a 100% mortgage, I just couldn’t get a new rate. I had to sit on that Standard Variable Rate until my situation changed and the property value went up.

Lenders will still offer you a switch if that happens, as they don’t want you to be in any trouble. My lender did that once, but not the next time.

It was a terrible market then, and very extreme circumstances so I don’t want you to worry about that too much. Generally, house prices do go up, even if it’s just by a little each year.

What are the advantages and disadvantages of fixed rate versus variable rate remortgages?

There are two advantages in being on the Standard Variable Rate. One is that you don’t have to do the remortgage and there’s no paperwork. Secondly, you’re not tied in. So if you want to sell your property and move, or your circumstances change, you have no tie-in.

However, you are going to pay so much more than on a fixed rate deal, especially at the moment.

In a fixed rate scenario, you’ve got less flexibility, but more certainty. You know what you’re paying for two or five years, or even longer. But you’re tied in for that period, so if you’re planning on making changes, you’re going to have an early repayment penalty.

Something in between those options is called a tracker rate, which gives you the flexibility of a variable rate because it doesn’t tie you in. There are usually no early repayment charges, but it can still give you a very competitive rate compared to the Standard Variable Rate.

We are seeing more people take those trackers because they want flexibility to move house, for example, without the high interest of a variable rate. Make sure that you’re not assuming one is the other, if that makes sense. There is a world in between.

What else do we need to know about a first time remortgage?

It’s worth remembering that an advisor can see everything that’s on the market, including products available direct with banks. There aren’t many of those. People think there are deals we can’t get access to, but we can see them – and it’s our job to make sure we are giving you the right advice.

If that advice is to go to a bank we can’t access, we’ll tell you. It’s our job to make sure you’ve got the best product for you financially and otherwise. Once you find the right advisor for that chat and that life review, you’ll get so much value from it.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.

YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU REMORTGAGE.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.

THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE MOST BUY TO LET MORTGAGES.