Remortgaging your home

What is remortgaging? 

Switching your mortgage product to a different lender is called a remortgage.  

When to consider remortgaging? 

You can remortgage at any point. Although, you may have to pay an Early Repayment Charge if you remortgage before your product term ends. 
 

Most people choose to switch their mortgage just before their mortgage deal ends. This is to avoid being moved to the lender's Standard Variable Rate (SVR). Generally, SVR mortgages have a higher rate of interest, with the monthly repayment likely to change regularly.
 

You may also choose to remortgage if your home has increased in value and want to move to a lower loan-to value (LTV) product.  Generally, mortgage products with a lower LTV offer a lower interest rate. 
 

If you want to change the type of mortgage, you may also consider switching, for example, you may decide to rent your home and remortgage from a residential product to a buy to let product. 

When you might want to wait to remortgage 

You may want to wait to remortgage if you owe more on your mortgage than the property is worth, this is known as negative equity. You may also want to wait to switch to avoid early repayment charges (ERC). 

How to remortgage  

You should seek advice from a mortgage advisor or broker if you are thinking about remortgaging. They can help you decide on what option may be right for you.  
 

Before you remortgage you will also need to know: 
 

Home value 

When you remortgage your home value would likely have changed. You will likely move to a different mortgage product based on the LTV.  
 

If you are a Welsh resident, you can use our Welsh House Price Index 
 

Your mortgage balance 

You may ask your lender for a redemption statement to find out your remaining mortgage balance. 

Fees and charges 
 

Valuation fees 

You may need to pay to have your home valued. Check with your lender if they offer this service. 
 

Legal fees  

To carry out searches and transfer mortgage money from one lender to another you need legal support. You may be charged for this service, or it may be offered for free by a lender. 
 

If you move to PBS 

If you decide to remortgage with us, you may be charged a product fee. This will depend on the product you choose. 
 

You may also need to check with your lender if you need to pay any of the following: 

• Early repayment charges 
• Exit / redemption fees 
   

If you move from PBS to a new lender  

If you decide to move to a new lender before your mortgage term ends you may have to pay an Early Repayment Charge. This is usually between 1% and 5% of your outstanding mortgage balance.  
 

If you want to avoid paying an ERC you will need to wait until the end of your product term before you can switch. You must tell the new provider and solicitors during the application process that you want to do this. For example, if your mortgage product ends on 31 January 2025, you should move to the new provider from 1 February 2025.