Definite Guide: How Does Remortgaging Work in 2022?

Hey Sunshine,

To switch your current mortgage deal to another one, remortgaging can help you save your money and help you to earn more without selling your property. Get to know the advantages of remortgaging, the drawbacks of doing so if your credit score is low, and the top remortgaging companies for 2022.

Learn how to remortgage your current deal if unsure where to start. Let Mount Shine experts help you to know everything about remortgaging.

Remortgages: Overview

A remortgage happens when you switch your current mortgage deal with a different lender. It is better to compare your new and the existing lender, see what both offer you, do all the calculations, and how much the interest rate is.


When your current mortgage deal is ending, switch it with another one as there are strong chances of SVR (Standard Variable Rate), which will eventually lead you to pay a higher interest rate than you were paying before. So, be careful.

To avoid any loss or fraud, be aware of every step you take before planning to remortgage.

How Does Remortgaging Work [2022]?

Remortgaging is usually a straightforward process; it only depends on whether you want to continue with current lenders or if you plan to switch to a new one.

How Does Remortgaging Work
How Does Remortgaging Work?

The following points will help you to know how remortgaging works:

  • Look for better options: if you are planning to remortgage, you’ll first look for better options compared to the current one.
  • Stick to your current lender:  If the interest rate fits best to your finance and you have no such problem with the existing lenders, you suggest you stick with the deal.
  • Finding a new lender: If your current mortgage is too high and you have other opinions with lower interest rates, you should give it a shot and go for a new lender.

Read – 30-Year Fixed Mortgage Calculator: (PMI + Interest + Taxes)

How To Remortgage: Step By Step Guide [2022]

To get a remortgage, check the following step-by-step guide in 2022:

  1. To Check The Affordability
  2. Check LTV
  3. Check Which Mortgage Type You Want
  4. Apply For An AIP
  5. To Find The Right Deal
  6. Apply For Your Remortgage
How To Remortgage?
How To Remortgage?

1. To Check The Affordability

All the lenders want to know how you will pay off the mortgage. For that, you can use remortgage calculators to check the affordability in-depth. Different lenders follow their criteria to review and process remortgage applications.

2. Check LTV

LTV(loan-to-value) is a ratio that helps you to know the mortgage a lender will offer you; by this, you can calculate the value of the property you want to remortgage.

To calculate your LTV, enter the amount you want to borrow and divide it by how much your home is worth x 100 = your LTV.

3. Check Which Mortgage Type You Want

Make your decision wisely, and check interest rates, valuation fees and broker fees. You can also take an expert if required.

4. Apply For An AIP

After comparing all the lenders, apply for an AIP (Agreement In Principle).

5. To Find The Right Deal

Once you have decided what mortgage type you want to go with, you need to find the right deal for you.

6. Apply For Your Remortgage

After completing the procedure, apply for your remortgage.

Before going to proceed, make sure to have the following:

  • To have your recent financial information about the mortgage. 
  • To have tax returns from the past few years that state that you are self-employed.
  • To have payslips from the past few years as proof of income 
  • Must have all bank statements from a few three years and the latest P60 tax form. 
  • To have all the proof ID and the documents that are required.

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When Should You Remortgage?

When Should You Remortgage
When Should You Remortgage?

Following are the reasons that tell you when you should remortgage:

  • If you want to save money, a remortgage is the best solution as it allows you to see many other options from which you can compare easily.
  • Suppose your current mortgage deal is ending. It is the best time to switch to a new mortgage.
  • Suppose you are looking for a better deal. There are plenty of good options available from where you can choose your discount.
  • Suppose you are looking for a flexible mortgage, which allows you to make overpayments and means less interest in the future.
  • If you want to borrow more.
  • If you are looking to pay less interest rate.

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When Shouldn’t You Remortgage? 3 Things To Consider [2022]

When Shouldn't You Remortgage
When Shouldn’t You Remortgage?

Following are the reasons that tell you when you shouldn’t remortgage:

  • If your current deal has reasonable interest rates.
  • If your existing mortgage home’s value has dropped.
  • If you already have little equity.
  • If you have a credit card problem 
  • If your mortgage debt is not too much.

Also, while remortgaging, consider these 3 things:

  • If you don’t know where to start, you should consider taking help from the experts. It might cost you extra dollars, but by the end, you’ll get a better deal for sure.
  • If your current mortgage deal offers you less interest with other benefits, we recommend sticking to the existing mortgage.
  • Lastly, do not forget to go through the terms and conditions before proceeding to remortgage.

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Compare Remortgage Deals: Best of 2022

Let us compare the remortgage rates and deals in 2022. For that let us consider hypothetically:

  • Property value: $400,000
  • Borrow money: $150,000
  • Initial period: 2 years 
  • Rate type: fixed 
  • Time period to pay back mortgage: 25 years

Now let us know what kind of best remortgage deals you can get in 2022:

Danske bank offers an initial monthly payment of $766.31

  • Rate type: 2 year fixed
  • Total fees: $50
  • Initial rate: 3.69%
  • Follow on rate: 4.95%
  • APRC: 4.77%
  • Initial period cost: $18,441.36

TSB offers initial monthly payment of $774.47

  • Rate type: 2 year fixed
  • Total fees: $0
  • Initial rate: 3.79%
  • Follow on rate: 5.24%
  • APRC: 5.02%
  • Initial period cost: $18,587.19

BM Solutions offers initial monthly payment of $778.56

  • Rate type: 2 year fixed
  • Total fees:$100


What are the 2 Pros and cons of remortgages with low credit rating?


  1. There might be a chance that you will get a lower lender’s scoring model.
  2. With a subprime mortgage, you can fulfil your dream as it only requires the borrower to pay the interest.


  1. It can lead to higher interest rate.
  2. There will be fewer loan options.

Is Remortgages For Over 70s A Good Idea?

The answer is yes, remortgages for over 70s are a good idea depending upon the lenders’ criteria and your circumstances.

How long do remortgages take?

Generally, it will take around four to eight weeks to remortgage. It might take a little longer as well, depending on the procedure.

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