Remortgaging explained: the legal steps and your options

What remortgaging means

Remortgaging means replacing your mortgage with a new one on the same property, usually from a different lender. You are not buying or selling, so there is no chain, but legal work is still needed to pay off the old loan and register the new one.

People commonly remortgage when a fixed or tracker deal is ending, to avoid moving onto the lender's standard variable rate (its default rate, which is often higher). Other reasons include borrowing more for home improvements, changing the mortgage term, switching from interest-only to repayment, or adding or removing someone. Borrowing more to clear other debts can cut monthly payments, but it may cost more overall if repaid over a longer period, and the debt is then secured on your home. A mortgage adviser can help you weigh this up.

This guide describes England and Wales. The outline is similar in Northern Ireland, which has its own land registry and terms.

Product transfer or remortgage?

Before switching, check what your current lender offers. A product transfer is a new deal with the same lender on the same property. Because the lender's mortgage stays registered, it usually needs no conveyancer. Borrowing more from your existing lender, called a further advance, often needs little or no legal work either.

A remortgage to a new lender does need a conveyancer, because the new lender must be satisfied that the property is good security and that its mortgage is registered correctly. A remortgage may offer a better rate or more borrowing, while a product transfer is usually simpler and quicker. Compare the total cost of each, including fees, not just the rate.

What the conveyancer does

On a remortgage the conveyancer usually acts for both you and the new lender. The work commonly runs in this order:

• Checking your identity and the source of any money you are adding
• Reviewing the title (the official ownership record) at HM Land Registry for restrictions and existing charges (registered mortgages)
• Checking the mortgage offer and the lender's requirements, and reporting any problem to the lender
• Carrying out searches, or arranging an insurance policy instead where the lender accepts one
• Getting a redemption statement from your current lender, showing exactly what is needed to repay it
• Asking you to sign the mortgage deed (the document creating the new mortgage) in front of an independent adult witness
• Requesting the new loan, repaying the old lender on completion and sending any surplus to you
• Registering the new charge, and the removal of the old one, at HM Land Registry

For example, if you owe £180,000 and are borrowing £200,000, the conveyancer uses the new loan to repay the £180,000 and any charges on the redemption statement, then sends you the balance, less any agreed costs.

Your part is to return forms and ID promptly, sign the deed correctly and mention anything that affects the property, such as other adults living there, recent building work or a lease.

Timing and early repayment charges

Many fixed deals carry an early repayment charge (ERC), a fee for paying off the loan before a set date. For example, a 3% charge on a £200,000 balance would be £6,000. Check your current terms and aim to complete on or just after the day your deal ends, unless the savings from switching earlier outweigh the charge. Your redemption statement will show any ERC and exit fee.

Once the new lender has issued its mortgage offer, a remortgage commonly takes 4 to 8 weeks to complete, depending on the title, the lender and how quickly paperwork comes back. Offers have an expiry date, so start in good time, as many lenders let you secure a new deal some months before your current one ends. If your deal has already ended, there is usually no ERC, but you may be paying the standard variable rate until the remortgage completes.

Leasehold remortgages

If you own a flat or leasehold house, the conveyancer also checks the lease against the new lender's requirements. Lenders look at the remaining term, how the ground rent can increase and whether insurance and repair arrangements are adequate. A short lease can make remortgaging difficult, so if yours has fewer years left than you thought, ask about extending your lease.

Many leases require you to give the landlord or managing agent notice of a new mortgage after completion, usually with a fee. Changes are being brought in by the Leasehold and Freehold Reform Act 2024; your conveyancer will tell you what applies on the date of your transaction. A leasehold remortgage quote reflects the extra work.

Changing owners at the same time

A remortgage is a natural time to add or remove an owner, for example adding a new partner or buying out a former one. This is a transfer of equity, and the same conveyancer can deal with it alongside the remortgage if the new lender agrees.

A remortgage on its own involves no Stamp Duty Land Tax (SDLT), but a transfer of equity can, and it needs extra documents and identity checks for everyone involved. For example, if you add your partner to the title, the new lender will usually assess you both, your partner will sign the mortgage deed, and SDLT may be due on the share of the mortgage they take on. See our guide to transfers of equity.

Free legal packages or your own conveyancer

Many lenders offer free legal work on a remortgage, where the lender pays a conveyancer from its own panel, or cashback towards your costs. For a straightforward case this can save money. The trade-offs are that you do not choose the firm, the package may cover only the basic work, and extras such as a leasehold property, unregistered land (property not yet recorded at HM Land Registry) or a transfer of equity may be charged on top.

Choosing your own conveyancer means paying a fee, but you pick who handles your matter, can ask questions before instructing and can combine the remortgage with other work. Neither route suits everyone. Compare the rate, lender fees and all legal costs together, and check that any firm you choose is on the new lender's panel. Whichever route you take, ask for a written breakdown of what is included.

What to have ready

Having these ready helps the conveyancer start straight away:

• Your new mortgage offer, or the lender's and broker's details
• Your current lender's name and mortgage account number
• Photo ID and proof of address for each borrower
• The names of any other adults who live at the property
• For leasehold property, the lease and the managing agent's details
• Details of any extra borrowing or ownership change you want at the same time
• When your current deal ends and your preferred completion date

Next steps

Get an instant, itemised remortgage quote showing the legal fee, VAT and disbursements. If you go ahead, you are introduced to a law firm that confirms its fees in writing before you instruct it, and that deals with you directly from then on. There is more on our remortgages page.