Re-mortgaging is the process of switching your existing mortgage to a new deal—either with your current lender (product transfer) or a different lender. It’s one of the most effective ways to save money, release equity, or restructure your finances.

At Capital 8 Finance, we help homeowners and landlords across Scotland, England, and Wales find the best remortgage deals. Whether you’re looking to secure a lower interest rate, raise capital for home improvements, or consolidate debts, we provide expert advice and access to whole-of-market lenders.

We serve clients across Scotland, England, and Wales, with access to:

• High street banks (Barclays, HSBC, NatWest, Lloyds, Santander)
• Challenger banks (Aldermore, Shawbrook, Paragon)
• Building societies (Nationwide, Skipton, Leeds Building Society)
• Specialist lenders (for complex cases, adverse credit, or unique properties)

What is Remortgaging?

Remortgaging means replacing your current mortgage with a new one. This can be with:

• Your existing lender(called a product transfer or rate switch)
• A different lender(a full remortgage)

Most people remortgage when their fixed-rate deal ends and they revert to the lender’s Standard Variable Rate (SVR), which is typically much higher than fixed rates.

Key reasons to remortgage:

• Lower your interest rate– Save hundreds per month
• Release equity– Access cash tied up in your property
• Consolidate debts– Pay off credit cards, loans, or other debts
• Change mortgage type– Switch from interest-only to repayment, or vice versa
• Shorten or extend your term– Pay off your mortgage faster or reduce monthly payments
• Remove someone from the mortgage– After separation or divorce
• Fund home improvements– Extensions, renovations, or adaptations

Why Remortgage?

1. Get a Better Interest Rate

The Problem: When your fixed-rate deal ends (typically after 2, 3, or 5 years), you automatically move to your lender’s Standard Variable Rate (SVR). SVRs are typically 2-3% higher than fixed rates.

Example:

• Current mortgage:£200,000 at 2% fixed (ending soon)
• Lender’s SVR:5%
• New fixed rate available:5%

Monthly payment comparison:

• At 2% fixed: £878/month
• At 6.5% SVR: £1,390/month (+£512/month)
• At 4.5% new fixed: £1,140/month (+£262/month vs. old rate, but saves £250/month vs. SVR)

Annual saving by remortgaging: £3,000/year vs. staying on SVR

2. Raise Capital (Equity Release)

If your property has increased in value, you can remortgage to release equity for:

• Home improvements(extensions, loft conversions, new kitchen)
• Debt consolidation(pay off high-interest credit cards or loans)
• Business investment(funding for your business – note: not all lenders allow this)
• Property investment(deposit for a buy-to-let property)
• Major purchases(car, wedding, education fees)

How it works:

Example:

• Original purchase price:£200,000 (2018)
• Original mortgage:£180,000 (90% LTV)
• Current property value:£250,000 (2025)
• Current mortgage balance:£170,000
• Equity:£80,000 (£250,000 – £170,000)

Remortgage options:

• Option 1:Remortgage at 75% LTV = £187,500 loan
  • Release: £17,500 cash (£187,500 – £170,000)
• Option 2:Remortgage at 80% LTV = £200,000 loan
  • Release: £30,000 cash (£200,000 – £170,000)

• Option 3:Remortgage at 85% LTV = £212,500 loan
  • Release: £42,500 cash (£212,500 – £170,000)

Note: Higher LTV = higher interest rate, so you’ll need to balance cash released vs. monthly cost.

3. Consolidate Debts

If you have high-interest debts (credit cards, personal loans, car finance), you can consolidate them into your mortgage at a much lower rate.

Example:

Current debts:

• Credit card 1: £8,000 at 22% APR (£220/month minimum payment)
• Credit card 2: £5,000 at 19% APR (£130/month minimum payment)
• Personal loan: £12,000 at 9% APR (£380/month)
• Total debt:£25,000
• Total monthly payments:£730/month

After remortgaging:

• Add £25,000 to your mortgage (£200,000 → £225,000)
• New mortgage rate: 4.5%
• Additional monthly cost:£142/month (£25,000 at 4.5% over 25 years)

Monthly saving: £730 – £142 = £588/month saved

⚠️ Important: Consolidating debts into your mortgage means:

• You’re securing previously unsecured debts against your home
• You’ll pay interest over a longer period (25 years vs. 3-5 years for loans)
• Total interest paid will be higher, even though monthly payments are lower
• Your home is at risk if you don’t keep up repayments

Only consolidate debts if:

• You’re struggling with high monthly payments
• You’re at risk of defaulting on unsecured debts
• You’re disciplined enough not to run up new debts after consolidating

4. Change to a Fixed Rate Mortgage

If you’re on a variable rate (SVR, tracker, or discounted variable), switching to a fixed rate gives you:

• Payment certainty– Your rate won’t change for 2, 3, 5, or 10 years
• Protection from rate rises– If interest rates increase, your payments stay the same, however if rates are cut, you shall not benefit from any rate cut if you are on a fixed rate product
• Easier budgeting– You know exactly what you’ll pay each month

When to fix:

• Interest rates are rising (lock in before they go higher)
• You want payment certainty for budgeting
• You’re on a high SVR and want to reduce payments

Fixed rate terms available:

• 2-year fixed:Lowest rates, but you’ll need to remortgage again in 2 years
• 3-year fixed:Balance of rate and flexibility
• 5-year fixed:Longer-term certainty, slightly higher rates
• 10-year fixed:Maximum certainty, but early repayment charges (ERCs) apply for 10 years

5. Adapt Your Existing Home

If you need to make your home more accessible (due to disability, aging, or caring for a family member), you can remortgage to fund:

• Accessibility adaptations(ramps, stairlifts, wet rooms)
• Extensions(ground-floor bedroom and bathroom)
• Home modifications(wider doorways, accessible kitchen)

Some lenders offer Accessible Home Mortgages with:

• Higher LTVs (up to 90-95%)
• Lower rates for accessibility improvements
• Flexible underwriting for disabled borrowers

6. Remove Someone from the Mortgage

After separation, divorce, or a change in circumstances, you may need to remove an ex-partner from the mortgage. This is called a transfer of equity or buyout remortgage.

How it works:

1. Property is valued
2. You remortgage for the full amount needed to:
   • Pay off the existing mortgage
   • Buy out your ex-partner’s share of the equity
3. The new mortgage is in your sole name

Example:

• Property value:£300,000
• Existing mortgage:£150,000
• Equity:£150,000
• Your ex-partner’s 50% share:£75,000

New mortgage required: £225,000 (£150,000 existing mortgage + £75,000 buyout)

Affordability requirement:

• You must be able to afford the new mortgage on your sole income
• Lenders will assess your income, outgoings, and credit history
• If you can’t afford it alone, you may need a guarantor or co-borrower

7. Shorten or Extend Your Mortgage Term

Shorten your term (pay off mortgage faster):

• Why:Save thousands in interest, own your home sooner
• Trade-off:Higher monthly payments

Example:

• Mortgage: £150,000 at 4.5%
• Current term: 25 years remaining (£833/month)
• Shorten to: 15 years (£1,147/month, +£314/month)
• Total interest saved:£56,000

Extend your term (reduce monthly payments):

• Why:Lower monthly payments, improve cash flow
• Trade-off:Pay more interest over time

Example:

• Mortgage: £150,000 at 4.5%
• Current term: 15 years remaining (£1,147/month)
• Extend to: 25 years (£833/month, -£314/month)
• Extra interest paid:£56,000

Types of Remortgages

Residential Remortgage

For your main home (the property you live in).

Common reasons:

• Lower interest rate
• Release equity for home improvements
• Debt consolidation
• Change mortgage type (interest-only to repayment)

Requirements:

• Proof of income (payslips, tax returns)
• Credit check
• Property valuation
• Affordability assessment

Buy-to-Let Remortgage

For rental properties (landlords).

Common reasons:

• Lower interest rate (save on monthly costs, increase profit)
• Release equity to purchase another BTL property
• Switch from personal name to limited company (tax efficiency)
• Remortgage multiple properties at once (portfolio remortgage)

Requirements:

• Rental income must cover 125-145% of mortgage payment (stress-tested at 5.5%)
• Property valuation
• Rental income evidence (tenancy agreements, bank statements)
• Portfolio schedule (if you own 4+ BTL properties)

Let-to-Buy Remortgage

If you’re moving out of your main home and renting it out, you need to switch from a residential mortgage to a buy-to-let mortgage. This is called let-to-buy.

Common scenario:

• You’re relocating for work or moving in with a partner
• You don’t want to sell your current home
• You want to rent it out and buy a new main residence

Process:

1. Notify your current lender (most won’t allow you to rent out on a residential mortgage)
2. Remortgage to a BTL mortgage (or get consent to let from your existing lender)
3. Apply for a new residential mortgage for your new main home

Requirements:

• Rental income must meet BTL affordability criteria (125-145% of mortgage payment)
• You must be able to afford both mortgages (the BTL and your new residential mortgage)

Equity Release (Lifetime Mortgage)

For homeowners aged 55+ who want to release equity without moving or making monthly payments.

How it works:

• You borrow a lump sum or drawdown facility secured against your home
• No monthly payments required (interest rolls up)
• Loan is repaid when you die or move into long-term care

Common uses:

• Supplement retirement income
• Pay off existing mortgage
• Fund home improvements
• Help children/grandchildren with house deposits

⚠️ Important:

• Interest compounds (rolls up), so the debt grows over time
• Reduces inheritance for your family
• May affect means-tested benefits
• Regulated by the Equity Release Council (protections include no negative equity guarantee)

Remortgage Process & Timeline

Step 1: Initial Consultation (Day 1)

Contact me to discuss:

• Your current mortgage (lender, rate, balance, end date)
• Your goals (lower rate, raise capital, debt consolidation, etc.)
• Your financial situation (income, credit history, property value)

Step 2: Mortgage Review & Comparison (Days 1-3)

I’ll:

• Review your current mortgage deal
• Calculate your potential savings
• Search the whole market for the best remortgage deals
• Present you with options (rates, fees, terms)

Step 3: Agreement in Principle (Days 3-5)

Once you choose a lender:

• I’ll arrange an Agreement in Principle (AIP)
• Soft credit check (no impact on credit score)
• Confirms you’re eligible for the new mortgage

Step 4: Full Application (Days 5-7)

I’ll submit your full application with:

• Proof of income (payslips, tax returns, bank statements)
• Proof of ID and address
• Current mortgage statement
• Property details

Step 5: Valuation (Days 7-14)

• Lender arranges a property valuation (£0-£500, depending on lender and property value)
• Valuer assesses the property to confirm its value
• Valuation report sent to lender

Step 6: Mortgage Offer (Days 14-28)

• Lender reviews application and valuation
• Issues formal mortgage offer (valid for 6 months)
• Offer sent to you and your solicitor

Step 7: Legal Work (Days 28-42)

• Solicitor handles the legal transfer
• Redeems your old mortgage
• Registers the new mortgage with the Land Registry

Step 8: Completion (Day 42+)

• New mortgage funds released
• Old mortgage paid off
• Any equity released is transferred to your bank account
• You start making payments on your new mortgage

Typical timeline: 6-8 weeks from application to completion (can be faster for straightforward cases or product transfers with your existing lender)

Remortgage Costs

1. Lender Arrangement Fee

• Cost:£0 – £2,000 (typically £999)
• What it is:Fee charged by the new lender to set up your mortgage
• Options:Pay upfront or add to the mortgage (adds interest over time)

2. Valuation Fee

• Cost:£0 – £500 (depends on property value)
• What it is:Lender’s valuation to confirm property value
• Note:Some lenders offer free valuations as part of their remortgage deal

3. Legal Fees

• Cost:£300 – £800
• What it is:Solicitor’s fees for handling the legal transfer
• Note:Many lenders offer free legal work for remortgages (they pay your solicitor’s fees)

4. Early Repayment Charge (ERC)

• Cost:1-5% of outstanding mortgage balance
• What it is:Penalty for leaving your current mortgage deal before the fixed term ends
• Example:£200,000 mortgage with 3% ERC = £6,000 penalty

⚠️ Check your current mortgage for ERCs before remortgaging!

If you’re still within your fixed term, calculate whether the savings from a new deal outweigh the ERC penalty.

Example:

• Current mortgage: £200,000 at 5%, 1 year left on fixed term
• ERC: 2% (£4,000)
• New mortgage available: 4%
• Monthly saving: £120/month
• Annual saving: £1,440

Should you remortgage now?

• Cost: £4,000 ERC
• Saving in year 1: £1,440
• Break-even:8 years

In this case, it’s better to wait 1 year until your fixed term ends (no ERC), then remortgage.

5. Broker Fee

• My fee:1% of loan amount (e.g., £2,000 on a £200,000 remortgage)
• Payable:On completion only (no upfront fees)

Total Typical Remortgage Costs:

• With free legals and valuation:£1,000 – £3,000 (lender fee + broker fee)
• Without free legals/valuation:£1,500 – £4,000

When Should You Remortgage?

✅ You Should Remortgage If:

• Your fixed-rate deal is ending in the next 3-6 months
• You’re on your lender’s SVR (typically 2-3% higher than fixed rates)
• Your property has increased in value and you want to release equity
• You have high-interest debts you want to consolidate
• You want to switch from interest-only to repayment (or vice versa)
• You need to remove someone from the mortgage (after separation/divorce)
• You want payment certainty (switch from variable to fixed rate)

❌ You Should NOT Remortgage If:

• You’re still within your fixed term and the ERC outweighs the savings
• Your property has decreased in value (you may not have enough equity to remortgage)
• Your income has decreased and you can’t afford affordability checks
• Your credit score has worsened significantly (you may not get approved or may get worse rates)

Remortgage FAQs

How much can I borrow when remortgaging?

Typically up to 85-90% of your property’s current value (LTV).

Example:

• Property value: £250,000
• Maximum loan at 85% LTV: £212,500

If your current mortgage is £180,000, you could release up to £32,500 in equity.

Can I remortgage with bad credit?

Possibly, but your options will be more limited and rates will be higher.

Minor adverse credit (missed payments, defaults under £500 over 12 months ago):

• Accepted by many high street lenders
• Slightly higher rates (+0.5-1%)

Moderate adverse credit (CCJs, defaults £500-£5,000 over 3 years ago):

• Accepted by specialist lenders
• Higher rates (+1-2%)

Major adverse credit (bankruptcy, repossession, IVA):

• Very limited options
• Typically need 6+ years since discharge
• Significantly higher rates (+2-4%)

Can I remortgage if I’m self-employed?

Yes. Lenders typically require:

• 2-3 years’ accounts or tax returns (SA302s)
• Proof of ongoing contracts or income
• Business bank statements

Some lenders accept 1 year’s accounts for established businesses.

How long does remortgaging take?

• Product transfer(staying with your current lender): 2-4 weeks
• Full remortgage(switching lenders): 6-8 weeks
• Complex cases(adverse credit, unique properties, equity release): 8-12 weeks

What’s the difference between remortgaging and a product transfer?

• Remortgage:Switching to a different lender (full application, valuation, legal work)
• Product transfer:Switching to a new deal with your existing lender (simpler, faster, no legal work or valuation usually required)

Product transfers are good if:

• Your current lender offers competitive rates
• You want a quick, simple process
• You want to avoid valuation and legal fees

Remortgaging is better if:

• You can get a significantly better rate elsewhere
• You want to release equity (product transfers usually don’t allow this)
• Your current lender doesn’t offer the features you need

Why Choose Capital 8 Finance for Remortgaging?

Whole-of-Market Access

I have access to:

• High street banks (Barclays, NatWest, Lloyds, Santander)
• Challenger banks (Aldermore, Shawbrook, Paragon)
• Building societies (Nationwide, Skipton, Leeds)
• Specialist lenders (for adverse credit, unique properties, complex cases)

This is only a selection of lenders available to me.

Expert Advice

• I’ll calculate your potential savings vs. your current deal
• I’ll check for early repayment charges and advise whether to remortgage now or wait
• I’ll explain all costs upfront (no hidden fees)
• I’ll handle the entire process from application to completion

Transparent Pricing

• Broker fee:1% of loan amount (e.g., £2,000 on £200,000 remortgage)
• Payable on completion only(no upfront fees)
• No obligation consultation– I’ll review your current mortgage and provide honest advice on whether remortgaging makes sense

Get Expert Remortgage Advice

Whether you’re looking to save money, release equity, or restructure your finances, I offer:

✅ Free initial consultation to review your current mortgage

✅ Whole-of-market access to find the best remortgage deals

✅ Expert guidance on timing, costs, and savings

✅ Transparent pricing (1% broker fee, payable on completion only)

Serving homeowners and landlords across Scotland, England, and Wales.

Capital 8 Finance – Expert remortgage advice to help you save money and achieve your financial goals.