The remortgaging process explained

If you're a homeowner, you'll almost certainly have to remortgage at some point - in other words, find a new mortgage deal.

Normally, homeowners either remortgage because their current deal has come to an end, or because they think another mortgage deal could save them money.

If you're thinking about remortgaging, this step-by-step guide could help you.

Step one: talk to your current mortgage provider

The first thing you should do is speak to your current mortgage provider and ask what your options for remortgaging with them are - as you might be able to get a discounted deal based on loyalty.

But although staying with the same provider could save you time and money, it's also important to look around for any better deals that may be available - which brings us to step two.

Step two: shop around

Even if the deal your current mortgage provider has offered you looks good, it's still worth shopping around to see exactly what other lenders are offering.

Make sure you pay particular attention to points like the mortgage duration and arrangement fees, as both can affect your overall costs.

Step three: do the maths

As soon as you've done your research, it's time to get stuck into the numbers and 'do the maths'. You'll need to work out if remortgaging is worth the time, effort and money you could end up putting into it.

Some of the deals with the lowest interest rates come with a relatively high arrangement fee, so work out if it really is a better deal before you go ahead.

Work out how long it will be until you start to feel the benefits of remortgaging (after paying fees, etc.).

If you decide a remortgage is going to be worthwhile, it's time to choose your deal.

Step four: apply

You should be able to apply for a remortgage online, over the phone or face-to-face at a local branch.

Whether you're switching lenders or staying with the same one, you'll usually need documentation of your current mortgage, proof of income and details of your other essential monthly expenses - as these can all help your mortgage provider when it comes to building a picture of your finances.

Your mortgage lender will need to conduct a credit check - so you may want to check your credit report in advance, and address any issues that you think might hinder your chances of being accepted for a remortgage deal.

As soon as your mortgage provider is happy they've got everything they need, it's just a case of processing your application and waiting for confirmation of their decision.

Step five: your new deal starts

If your application is successful, your new deal should start soon afterwards (depending on the date you requested when you applied).

If your mortgage deal has already ended, it could start more or less straight away, but you can also arrange remortgage deals several months before your existing arrangement finishes (in which case it would start after that date).

Tags: mortgage, mortgages, remortgage, remortgaging, mortgage deal, mortgage provider, credit check, credit rating

Fees payable when continuing service is provided. Repaying debt over a longer period may increase the total amount to be repaid. Calls are recorded and are usually free from UK landlines. Mobile phone users may be charged and should check with their service provider. Cards are provided by third parties and are subject to eligibility, status and terms and conditions. Applicants must be UK residents aged 18 or over.