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

Remortgaging is where you pay off your existing mortgage and switch to another lender. There are good reasons why you might consider remortgaging as it can reduce your repayments or release capital tied up in your home.

Remortgaging to get a better interest rate

When you take out a new mortgage, you often get an introductory deal such as fixed or discounted interest rate for the first few years. Introductory deals normally last for between one and five years but once the deal ends you’ll probably be moved onto your lender’s standard variable rate.

Here at Mortgage Options, we can assess the current market for you to see if switching to a new mortgage deal will save you money. Because there may be legal, valuation and administration costs to pay we can work all these out for you to ensure that you have a clear idea of any savings.

Reducing your loan-to-value to get a better rate

Every mortgage deal has a limit to how much you can borrow compared with the current value of the property. This is shown as a percentage and is called the “loan-to-value”. When you remortgage you are likely to have a much lower loan-to-value and we can source better deals that are not available to other borrowers.

How to calculate your loan-to-value

Divide your outstanding mortgage amount by your property’s current value. Multiply the result by 100.


Your outstanding mortgage is £150,000
Your lender thinks your property is worth £200,000
£150,000 divided by £200,000 = 0.75
0.75 x 100 = 75 – so your loan-to-value is 75%

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