Remortgaging - all you need to know.

What is a remortgage?

A remortgage is where you end your mortgage with your current provider and take out a new mortgage with a different lender.

How does remortgaging work?

It works by taking out a mortgage for your existing property with a new lender, and using the proceeds to pay off your original mortgage.

If you remortgage to Halifax, we’ll arrange for a solicitor to do this for you and pay our own legal fees . If you would prefer to instruct your own conveyancer , you must arrange and pay for these services yourself.

If you want to, when you take out your new mortgage you may be able to borrow more money at the same time, for example to pay for home improvements.

Why should I remortgage?

Remortgage to save money

For lots of people in the UK, their mortgage is their largest monthly outgoing. So even a small change in the interest rate being paid could result in significant savings. Checking out deals from lenders other than your current provider could help you save money on your mortgage.

If the value of your property has gone up since you took out or last made a change to your mortgage, then the loan-to-value of your property may have reduced. This could mean you’re eligible for a lower rate than you’re currently on.

Remortgage for flexibility

We live in changing times, so you may want a mortgage that gives you the flexibility you need to help you through life’s ups and downs.

If you remortgage to Halifax, you’d have the ability to make overpayments, or apply to take a break from paying your mortgage for a couple of months, sometimes called a payment holiday.

Find a remortgage deal.

Use our mortgage calculator to view our current remortgage deals. You'll get an idea of how much you could borrow and compare monthly payments.

Find a remortgage deal

Begin your full mortgage application.

To start your application you can use our online Agreement in Principle service, even if you want to go on to complete your full mortgage application over the phone or in branch.

Start your application

How much could I borrow?

We'll only lend you a certain percentage of the property valuation. You may not need to pay a deposit and you may be able to borrow more than you currently owe. This will depend on the property valuation and how much you owe on your current mortgage, as well as how much we think you can afford to borrow.

What types of properties will you lend on?

We'll consider lending you money for different types of property in the UK. Any loan we make will be subject to a satisfactory property assessment.

Is there a minimum property value?

While we'll consider many types of property, we've a responsibility to ensure that a property is suitable security for a mortgage. As a result, we'll not lend against properties where the valuation is below £40,000.

What is an Agreement in Principle and how does it differ from a mortgage offer?

An Agreement in Principle, also known as a 'Decision in Principle' or 'Mortgage Promise', is useful if you want to know if you could remortgage to us. All we need is a few personal details about you and anyone else who will be named on the mortgage. Then we’ll contact a credit reference agency for a credit search and give you a credit score. If you reach our pass mark, we’ll confirm that we could offer you a mortgage (subject to you completing a full mortgage application).

A mortgage offer is issued by a lender once your mortgage application has been received and the necessary checks, such as the property valuation and confirmation of your details, have been carried out. It sets out the terms under which the lender is prepared to offer you a loan.

You can apply for an Agreement in Principle online, it takes about 15 mins. Simply use our mortgage calculator and you can can continue to apply online from there. There’s no fee and no obligation to apply for a mortgage with us.

Once you have an Agreement in Principle, you can go on to complete your full remortgage application. Even if you complete your Agreement in Principle online you can choose whether you want to apply for your mortgage in branch, over the phone or online.

What are my options when applying for a mortgage?

Once you've got your Agreement in Principle, you can start your full mortgage application online, in branch or over the phone. The same deals will be available no matter how you apply.

Applying by phone or in branch

If you apply over the phone or in branch, you'll receive advice from one of our qualified mortgage advisers. They'll ask about your needs and circumstances and then recommend our most suitable mortgage for you. They'll discuss the next steps in the application process and answer any queries you may have.

Applying online

If you apply online, you’ll have to make your own choice about the most suitable mortgage for you. By applying online, you’re making the decision not to receive any advice from one of our qualified mortgage advisers. At the start of your application we'll ask some questions to confirm that you're eligible to proceed online.

If you start your application online, you can change your mind at any time and receive advice from one of our mortgage advisers in branch or over the phone.

What will I need for the mortgage application?

We'll ask for the following details about you and anyone else who will be named on the mortgage:

  • Personal details including name, address, date of birth and contact details
  • Employment details
  • Financial details including income, bonuses, overtime, commitments and monthly expenditure
  • Retirement plans.

We'll also need:

  • Details of the property to be mortgaged including the year the property was built and the construction type
  • Your existing mortgage lender details and your current mortgage balance
  • Documents to confirm what you've told us.

How long will it take to move my mortgage to you?

It can take about 4 to 8 weeks to complete a remortgage. However there are a number of steps involved and it all depends on how long each step takes, which can vary depending on your own personal circumstances.

Steps to remortgaging

You'll need to:

  1. Use our mortgage calculator to view our remortgage deals
  2. Apply for an Agreement in Principle from us - you can do this in branch, over the phone or online
  3. Apply for your mortgage – you can do this in branch, over the phone or online
  4. Provide your identification and documents to us – we’ll let you know everything we need

We'll then:

  1. Arrange for a property assessment
  2. Review your application, documentation and valuation
  3. If everything is okay, we’ll write to make you a mortgage offer.

The conveyancer will:

  1. Check your mortgage offer
  2. Carry out Land Registry/Registers of Scotland searches on the property
  3. Draw up and ask you to sign the mortgage deed or standard security.

On the day of completion, we'll:

  1. Send the funds to our conveyancer who pays off your mortgage with your current lender and transfers the borrowing on your property to us
  2. Send you a letter to tell you the mortgage has started with us.

Do I need to arrange a solicitor / conveyancer for a remortgage?

Remortgages come with our Remortgage Service. We won't charge you for the property assessment and we'll pay our own legal fees - you must pay for any legal advice or additional services required. If you apply online you'll need to confirm you're happy to use this service. If you apply over the phone or in branch, if you do not wish to use our Remortgage Service and would prefer to instruct your own conveyancer to deal with your remortgage, you must arrange and pay for these services yourself.

What insurance will I need?

It's a requirement of your mortgage to have buildings insurance. This covers the bricks and mortar, fixtures and fittings. It's also a good idea to take out contents insurance as well - this protects all your possessions in your home, from furniture to jewellery.

You may want to look into insurance to protect your mortgage for example Life Cover and Critical Illness Cover.

Will I be charged any fees?

This will depend on the mortgage product, there may be a product fee to pay and early repayment charges if you repay early. Any product fees can be added on to your mortgage on completion. There could be other charges and standard costs which you may have to pay during the course of setting up your mortgage. You'll be charged interest on any fees, charges and standard costs added to your loan.

What happens at the end of my mortgage deal?

When you take out your mortgage, you arrange to have a fixed or variable rate product for a period of time. At the end of this time, the product will end and your loan will usually be transferred to one of our lender variable rates. At this point, you may choose to move it to a new product for a further period of time.

What happens if I want to move home in the middle of my mortgage deal?

It's sometimes possible to take a product rate with you to a new mortgage on a different property - we sometimes call this 'porting‘. Your Mortgage Illustration and offer letter will say if any of your products are portable.

Your home may be repossessed if you do not keep up repayments on your mortgage.