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Remortgage Advice for Your Current Mortgage and Future Plans
Your mortgage should continue to reflect your circumstances, property and plans — not simply remain unchanged because the current arrangement is already in place.
Jayhawk Capital can help you review your existing mortgage, compare staying with your current lender against moving elsewhere and understand whether borrowing more may be appropriate.
We consider the rate and fees alongside the mortgage term, monthly cost, flexibility and wider reason for reviewing the borrowing. This gives you a clearer view of the options and whether changing your mortgage appears worthwhile.
Remortgage advice for homeowners, professionals, business owners, contractors, self-employed applicants and those with more complex circumstances.
Review Your Mortgage Before the Current Deal Ends
A mortgage review is most useful when there is enough time to consider the available routes without being forced into a last-minute decision.
If your current fixed, discounted or tracker deal is approaching its end, the mortgage will usually move onto your lender’s standard variable (SVR) rate unless another arrangement is made. The SVR may be higher than the rate you currently pay and can change at the lender’s discretion.
The right route is not always the one with the lowest headline rate. Product fees, early repayment charges, mortgage term and future plans can all affect the overall outcome.
Reviewing the position several months in advance gives you time to consider:
- The date your current deal ends
- Your outstanding mortgage balance
- The remaining mortgage term
- Your current interest rate and monthly payment
- Any early repayment charge
- Your property’s estimated value
- Changes to your income or expenditure
- Whether you want to borrow more
- Your likely plans for the property
- The level of payment certainty or flexibility you prefer
Product Transfer or Remortgage?
When reviewing your mortgage, the two main routes are often a product transfer with your current lender or a remortgage to a different lender.
Product Transfer
A product transfer means moving onto a new mortgage product with your existing lender without changing provider.
The process can sometimes involve fewer checks and less legal work than changing lender, particularly where you are not increasing the borrowing or making other significant changes.
A product transfer may be worth considering where:
- Your current lender offers a suitable new deal
- Your circumstances have changed since the original application
- You want a relatively straightforward switch
- Changing lender would involve significant costs
- Your property or financial position may limit the options elsewhere
Remaining with the current lender should not be treated as the automatic choice. The new product still needs to be considered against the alternatives available.
Remortgage
A remortgage means replacing your current mortgage with a new mortgage from a different lender.
Moving lender may provide access to different rates, borrowing amounts, product features or ways of assessing your circumstances.
The new lender will normally reassess your income, expenditure, credit position and property before deciding whether to offer the mortgage.
Legal work and a property valuation may also be required.
Comparing Both Routes
A product transfer may be more straightforward, while changing lender may provide a broader range of options. Neither route is automatically better.
We compare the costs, conditions, borrowing available and longer-term implications before explaining which options appear to suit your circumstances.
Common Reasons to Remortgage
Your Current Mortgage Deal Is Ending
Reviewing the mortgage before the current deal ends can help you avoid moving onto the lender’s standard variable rate without first considering the alternatives.
A new arrangement may provide a different rate, initial deal period or level of payment certainty.
You Want to Review Your Monthly Payments
A change in rate, mortgage term or repayment structure can affect the amount paid each month.
Reducing the monthly payment may provide more room within your budget, but extending the mortgage term can increase the total interest paid over time.
The immediate payment and longer-term cost should therefore be considered together.
You Want Greater Payment Certainty
Moving from a variable arrangement to a fixed rate may provide greater certainty over the monthly payment during the initial deal period.
The appropriate length of that period will depend on your preferences, future plans and the flexibility you may need.
Your Property Value Has Changed
If the property has increased in value or the mortgage balance has reduced, the proportion borrowed against the property may have improved.
This is commonly referred to as the loan-to-value ratio.
A lower loan-to-value ratio can affect the range of products available, although the lender will rely on its own valuation of the property.
You Want to Change the Mortgage Term
You may want to reduce the remaining term and repay the mortgage sooner, or extend it to lower the monthly payment.
Shortening the term normally increases the monthly payment but may reduce the total interest paid. Extending it may reduce the immediate cost but could mean paying interest for longer.
Your Circumstances Have Changed
Changes to your employment, income, household, property plans or financial commitments may mean the existing mortgage no longer reflects your position.
A review can help establish whether the mortgage should be changed now or whether remaining with the current arrangement is more appropriate.
You Want to Borrow More
You may want to increase the mortgage for home improvements, another property purchase or a different planned expense.
The purpose, amount, affordability and effect on the overall mortgage all need to be considered before additional borrowing is recommended.
Releasing Equity from Your Property
Equity is the difference between the property’s current value and the borrowing secured against it.
Remortgaging may allow you to increase the mortgage and release part of that equity as capital.
Property value − borrowing secured against the property = equity
- Renovating or extending the property
- Providing a deposit for another property
- Supporting a property investment or project
- Helping a family member with a property purchase
- Reorganising existing borrowing
- Funding another clearly defined expense
The amount available will depend on the property value, existing mortgage balance, income, expenditure, credit position and the lender’s criteria.
Releasing equity increases the borrowing secured against your home. It can also increase the monthly payment, extend the repayment period or increase the total amount of interest paid.
Alternatives to Remortgaging
Changing lender is not the only way to raise additional funds.
Depending on the circumstances, the alternatives could include:
- A further advance from the existing lender
- A second charge mortgage
- Unsecured borrowing
- Using savings or other available assets
- Delaying or reducing the proposed expenditure
The existing mortgage rate and any early repayment charge can influence which route is more appropriate. We consider the available options rather than assuming that replacing the entire mortgage is the right answer.
Remortgaging to Consolidate Debts
Some homeowners consider increasing their mortgage to repay credit cards, loans or other unsecured commitments.
This can reduce the number of separate payments and may lower the immediate monthly cost. However, transferring shorter-term unsecured borrowing onto a mortgage can mean repaying it over a much longer period.
As a result, you may pay more interest overall even where the mortgage rate is lower. The borrowing will also become secured against your home.
Before proceeding, the following need to be considered carefully:
- The total amount being consolidated
- The rates and terms of the existing debts
- The new mortgage payment
- The proposed mortgage term
- Fees and early repayment charges
- The total amount likely to be repaid
- Whether the change addresses the reason the debts arose
- The increased borrowing secured against the property
Debt consolidation through a mortgage will not be suitable for everyone. The immediate payment reduction should not be considered without understanding the longer-term cost and risks.
What Lenders Consider When You Remortgage
A new lender will assess your current position rather than relying on the circumstances in place when the existing mortgage was arranged.
Your Income
The lender will want to understand your income, how it is earned and whether it appears sustainable.
This may require a more detailed assessment where you are self-employed, work as a contractor or receive bonuses, commission, overtime, investment income or earnings from several sources.
Your Expenditure and Commitments
Loans, credit cards, car finance, childcare and other regular commitments can affect the amount considered affordable.
The lender may also take account of relevant future changes that are known at the time of the application.
Your Property Value and Mortgage Balance
The lender will consider the value of the property and the total amount being borrowed against it.
Its valuation may differ from an estate agent’s estimate or an online property value.
Your Credit and Mortgage History
The lender may review how you have managed the existing mortgage and other financial commitments.
A previous credit issue does not necessarily prevent a remortgage, but the type, value, age and circumstances will affect which lenders may be appropriate.
The Purpose of Additional Borrowing
Where you want to increase the mortgage, the lender will need to understand how the additional funds will be used.
Different lenders have different criteria regarding acceptable loan purposes and the amount they are prepared to advance.
The Property
The property must provide acceptable security for the new lender.
Its condition, construction, tenure, location and use can all influence the application.
The Mortgage Term and Repayment Method
The lender will consider the proposed term, your age, intended repayment method and whether the mortgage appears sustainable.
Where any borrowing is arranged on an interest-only basis, a credible strategy for repaying the capital will normally be required.
When Remortgaging May Not Be the Right Route
Changing lender or increasing the mortgage is not automatically beneficial. Remaining with the existing lender or current arrangement may be more appropriate where:
- Your existing mortgage rate remains competitive
- A significant early repayment charge applies
- The potential saving is outweighed by fees and other costs
- The outstanding mortgage balance is relatively small
- You expect to move home in the near future
- Your current circumstances limit the options available elsewhere
- The property value has fallen or the loan-to-value ratio has increased
- Extending the term would create an unnecessarily high longer-term cost
- The additional borrowing would place too much pressure on affordability
- A product transfer provides a suitable and more straightforward route
We assess the overall position rather than recommending a remortgage simply because the current deal is ending.
Where changing lender does not appear realistic or beneficial, we believe it is better to explain that early.
Remortgaging with More Complex Circumstances
A remortgage can require a more detailed approach where your income, assets, property or borrowing needs do not fit a standard application.
You Are Self-Employed or a Company Director
Lenders can assess salary, dividends, business profits and retained profit in different ways.
The available options may depend on how you trade, the length of your accounts history and the recent performance of the business.
You Work as a Contractor
Some lenders may use accounts or payslips, while others can consider the current contract, day rate, professional history and likelihood of continued work.
Your Income Comes from Several Sources
Bonuses, commission, overtime, rental income, investments and earnings from several roles may be treated differently between lenders.
You Want to Raise a Significant Amount of Capital
Larger capital-raising requirements may need a more detailed assessment of the purpose, property, affordability and wider financial position.
You Have a High-Value Mortgage
Higher-value borrowing can involve different lender limits, underwriting requirements and ways of assessing income and assets.
The structure, flexibility and longer-term plans may be as important as the initial rate.
You Have Experienced Credit Problems
Recent or historic credit issues may affect the range of lenders and products available.
The circumstances, value, age and current position will determine which routes appear realistic.
Your Property Is Not Standard
Unusual construction, mixed use, a large amount of land, multiple units or another distinctive feature may require a lender with suitable property criteria.
Jayhawk Capital’s experience across residential mortgages and specialist property finance allows us to assess the wider position and explain the options worth exploring.
From Mortgage Review to Completion
Review Your Current Mortgage
We begin with your mortgage balance, current rate, deal end date, remaining term, property value and any early repayment charge.
We also discuss what you want the new arrangement to achieve.
Understand Your Current Circumstances
We review your income, expenditure, credit commitments, property plans and any additional borrowing required.
Where something may affect the available options, we aim to identify it at an early stage.
Compare Staying and Switching
We consider whether a product transfer with the existing lender or a remortgage to a new lender appears more suitable.
The comparison takes account of rates, fees, early repayment charges, monthly costs, product terms and flexibility.
Recommend and Apply
Once the available routes have been assessed, we explain our recommendation and the principal costs and conditions.
Where you decide to proceed with a new lender, we prepare and submit the application with the relevant supporting information.
Progress the Valuation and Legal Work
The lender may arrange a valuation and require legal work before the new mortgage can complete.
We remain involved while the lender, solicitor and other parties progress the application.
Keep You Informed Through to Completion
You will be kept informed about where the application stands, what is being assessed or awaited and whether anything further is required from you.
Once the legal and lender requirements are complete, the new mortgage repays the previous lender and the new arrangement begins.
A Remortgage Structured Around Your Wider Plans
A mortgage review should consider more than the next available interest rate.
Your preferred monthly payment, mortgage term, plans to move, expected income changes, overpayment intentions and need for future flexibility can all affect the most appropriate structure.
You may want to repay the mortgage sooner, release equity for a property project or establish a more suitable arrangement before another planned transaction.
Jayhawk Capital considers what you want the mortgage to achieve now and how the decision may affect your future options.
The aim is not simply to replace one product with another. It is to arrange borrowing that reflects your current circumstances and remains aligned with the direction you are working towards.
Considerations that affect the structure
- Preferred monthly payment
- Mortgage term
- Plans to move
- Expected income changes
- Overpayment intentions
- Future flexibility
Remortgage Frequently Asked Questions
It is sensible to begin reviewing your options several months before the current deal ends.
This allows time to compare staying with the existing lender against moving elsewhere, prepare any documents required and arrange the new mortgage to begin at an appropriate time.
You can apply to remortgage before the current deal ends, but an early repayment charge may apply if the existing mortgage is repaid during a restricted period.
Whether switching early is worthwhile will depend on the charge, fees, new mortgage costs and potential benefit.
Moving onto a new deal with your existing lender is normally described as a product transfer rather than a remortgage.
It may provide a suitable and relatively straightforward route, but the available products should still be considered against the alternatives.
Yes, subject to the lender’s affordability assessment, property valuation, loan purpose and lending criteria.
Increasing the mortgage will affect the amount secured against your property and may change the monthly payment and total borrowing cost.
A new lender will normally need to establish that the property provides suitable security for the proposed mortgage.
The valuation may be completed remotely or through a physical inspection, depending on the lender and property.
Changing mortgage lender usually involves legal work to repay the existing lender and register the new lender’s charge against the property.
Some lenders may provide a standard legal service or contribute towards the cost. More complex transactions may require the borrower to appoint a solicitor directly.
Yes, provided the lender is satisfied with the income, affordability and wider application.
Different lenders assess company directors, sole traders and contractors in different ways. Understanding how you work and receive income helps identify which criteria may be more appropriate.
Credit problems do not automatically prevent a remortgage, but they can affect the lenders, rates and products available.
The impact will depend on the nature, value, age and circumstances of the credit issue, together with your current financial position.
Extending the term can reduce the monthly payment, subject to lender criteria and affordability.
However, repaying the mortgage over longer will usually increase the total interest paid. Both the immediate payment and longer-term cost should be considered.
It can be appropriate in some circumstances, but it involves converting unsecured borrowing into debt secured against your home.
Although the monthly payment may reduce, repaying the borrowing over a longer period can increase the total amount paid. The costs and risks need to be assessed carefully before proceeding.
Potential costs may include:
- Early repayment charges
- Mortgage product fees
- Valuation costs
- Legal costs
- Administration fees
- Mortgage advice or brokerage fees
Any potential saving or benefit should be considered after allowing for the full cost of changing the mortgage.
Discuss Your Remortgage
Your current deal may be approaching its end, or you may want to release equity, change the mortgage term or understand whether the existing arrangement still suits your plans.
Tell us about your property, current mortgage and what you would like the new arrangement to achieve.
We will review the initial details and contact you to discuss the routes that appear worth exploring and what information is needed next.
Jayhawk Capital may charge a tailored broker fee of up to 1% of the loan, subject to a minimum fee of £500.
For residential mortgages, the fee is generally payable when the mortgage offer is issued. The amount and payment stage will be confirmed before you decide to proceed.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Other Mortgage Services That May Be Relevant
A mortgage review may also touch on other borrowing needs. Explore related residential mortgage services offered by Jayhawk Capital.