First Time Remortgage

Should I stay with my current lender when remortgaging for the first time?

There are lots of variables here. It will completely depend on your circumstances. It can be good to look at what deals are available from your current lender.

A good mortgage broker should always compare those rates and products from that current lender, compared with other lenders at that particular time.

We would come back to you with a transparent, clear recommendation on the best thing to do. We would factor in all the fees, charges and transactional times as well as the pros and cons of remortgaging to another provider, or staying with your current provider. Staying with your lender is generally called a rate switch or a product transfer.

Can I remortgage if I have bad credit since taking my initial mortgage? Can I remortgage for the first time to consolidate my debts?

If you’ve encountered bad credit while you’re with a mortgage provider, the deal you switch to with adverse credit could be at a higher rate, with potentially higher fees and more restrictive criteria.

Again, you’ve got to weigh up the options. It can be restrictive if you’ve encountered bad credit while you’re on your current deal. A good mortgage broker should go through all the pros and cons of that and then give you clear advice and guidance of what’s best to do.

Some people are still wanting to remortgage, because they may, for example, want to raise capital to pay for some home improvements.

As long as we outline the pros, cons and risk factors of that, and the client is still wanting to pursue that remortgage, we will go through that with them.

How much could I potentially save if it’s my first remortgage?

It’s impossible to give you a response to that because there are many, many variables, as you can imagine.

There are many products – fixed rate mortgages, tracker rate mortgages, and deals for two, three or five years with or without fees. Savings will depend on the term and balance of the mortgage and your personal circumstances.

A good mortgage broker should sit down and go through all that – the fees, charges and savings, and give honest advice on whether it is viable to remortgage. If you’re remortgaging on a like-for-like basis, i.e. transferring the same amount from one lender to another, we will advise what’s best to do.

The simple rules are that if it’s going to cost you more money to remortgage, don’t do it. If you’re saving money, then go ahead.

What documentation will I need to provide when remortgaging for the first time?

It’s not just remortgaging for the first time – it’s the same for remortgaging at any time. When you’re approaching a new lender, they will assess the mortgage from the beginning. They look at your credit history, affordability and will need documentation that backs up everything on your mortgage application.

That could involve bank statements, pay slips, passports, driving licences and proof of residency. If you’re self-employed or you’re renting property out, it could be your accounts or the tax computations you get from HMRC.

We also need verbal information around where you’ve worked and lived for three years. We send all our clients a very comprehensive list of the information and documentation we would require.

A mortgage broker will package everything correctly for a lender, which will hopefully speed the process up.

Will I need a new valuation or survey when remortgaging?

A mortgage lender will want to get the valuation of the property confirmed. They can do that in a couple of ways. They might offer a valuation on a remortgage and, depending on the data and intel that they will have, that they could do an automated valuation.

That can be very quick. There’s no need to physically send a surveyor out to a property, which then leads us into the other alternative, which is a physical valuation. A human being will then come to your property, look around and send a report back to the lender of what they feel your property is worth.

What happens if my property value has decreased since I initially obtained my mortgage?

If it’s decreased, it can affect the Loan to Value that we talked about earlier. A decrease in value could increase the percentage of borrowing, and take you over a certain threshold for that lender’s products.

Lenders generally work in increments of 5%, and having more equity could achieve potentially lower interest rates. You’ll pay less on a 60% Loan to Value compared to 90%, for example.

If the surveyor believes the value has decreased and you disagree, there may be a right to appeal. Again, speak to your mortgage broker and they can guide you on that.

What are the advantages and disadvantages of fixed rate versus variable rate remortgages?

There’s no right or wrong or good or bad on this. It’s down to individual circumstances – a common theme here.

With a fixed rate, a mortgage lender would offer you a set rate for a period of time. It could be two, three or five years. Regardless of economic factors, your rate cannot go up or down.

That means you have stability of payment, knowing what you will be paying – no more, no less – for that period of time.

A variable rate can come under the guise of a tracker rate, which tracks the Bank of England, or a discounted rate, which tracks the lender’s standard variable rate. They are variable, so economic factors come into play.

As we speak in February 2025, we have had a very volatile two or three years in the mortgage industry. Rates have been going up and down. Some economists are now forecasting that rates are on the way down – but whether that’s true remains to be seen.

If rates are trending downwards, a variable rate could be beneficial, because you would benefit from rate reductions. You will not benefit from those on a fixed rate.

There are pros and cons to both, and specific circumstances where they could be applicable for an individual. But again, there are many variables. Speak to a good mortgage broker, and they will advise accordingly.

You’ve already demonstrated how a mortgage broker can help. Is there anything you’d like to add?

Everybody trusts Martin Lewis and he’s amazing at what he does. He always says on his TV shows that it’s best to speak to a mortgage broker.

A mortgage broker can assess the options available and compare products. We compare fees and charges, and package up clients for lenders in a way they prefer. That can speed the process up.

In some extreme examples, a broker could mean the difference between getting a mortgage accepted with your requested amount, or being declined, or being offered a smaller mortgage.

A good quality mortgage broker can make a massive difference to an individual – not just with the product and rate, but also processing it in a speedy and timely manner. And that’s why Martin Lewis will point you in our direction.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

You may have to pay an early repayment charge to your existing lender if you remortgage.