Remortgaging is one of the most common conversations brokers have with their clients especially when fixed rate deals come to an end or interest rates shift. But for many homeowners, the process still feels complicated, rushed, and filled with jargon.
To make your client conversations smoother, here are some of our frequently asked questions with answers that you can share or use as a reference.
What is a remortgage?
A remortgage is when a homeowner switches their current mortgage deal to a new one. This could be either with their existing lender or a new one.
Why would someone choose to remortgage?
Most people remortgage because their fixed rate is ending and they want to avoid their lender’s Standard Variable Rate (SVR), or they’re exploring better options available on the market to save some money.
When is the right time to remortgage?
The general recommendation is to start looking around six months before a current deal ends.
This gives you and your client enough time to compare options, lock in a rate, and avoid being rolled onto an SVR which can be significantly higher. Acting early also gives your client more control as they will be choosing proactively rather than reacting when their payment jumps.
How long does a remortgage take?
Most remortgages complete within 4–8 weeks, however this can depend on:
Are there fees involved?
Yes, and clients can often misunderstand what these look like. Typical fees include:
A quick fee review early in the conversation can help avoid surprises later.
Can clients remortgage early?
They can, but they’ll need to understand the cost. Remortgaging before a fixed rate deal ends almost always triggers an ERC, which can run into thousands.
However, this doesn’t mean they can’t plan early. Many lenders allow clients to secure their next deal several months ahead of time, with the new rate starting when their current one ends.
Can clients release equity when they remortgage?
Yes. If the property value has increased, or if they’ve paid off a chunk of their mortgage, clients may be able to release equity for home improvements, debt consolidation, life events or financial planning.
Affordability checks will still apply, but equity release through remortgaging remains one of the most common motivations for switching lender.
Do clients need a solicitor?
It depends. If the product transfer with the same lender, then no solicitor is needed. However, if they are switching to a new lender, then they will.
What documents do clients need to provide?
Similarly to a mortgage application, client’s will need to provide:
Should clients stay with their current lender or switch?
There’s no one-size-fits-all answer. The benefits of staying with their current lender (product transfer) are that it is often faster, with less paperwork, and no valuation or legal work in most cases. Whereas switching to a new lender can give clients the opportunity to potentially access to better rates, have a wider product choice, or borrow more/change terms.
Whatever they choose, remortgaging shouldn’t feel stressful for you or your clients. With the right preparation, clear explanations, and early planning, it can be one of the easiest ways for homeowners to save money and for you to build your client relationship as a broker. Recap your understanding of Optimus’ remortgage products with this quick Three Questions with video featuring our Business Development Manager, Steve Bell.