5 min read

How to remortgage with ClearScore

Frankie Jones
11 April 2019

Are you paying too much for your current mortgage? Roughly 70% of homeowners are. But why stick with a lender who’s overcharging you, when you could be saving up to £371 a month on your repayments? Remortgaging allows you to secure a cheaper interest rate, reducing the amount you owe on your mortgage. Whatever your reason for remortgaging - whether it’s to save money, take out cash against your property or something else - switching deals has never been easier.

Why remortgage with ClearScore?

We’ve partnered with Koodoo on our new, instant remortgage comparison tool. Designed to simplify the whole process, you can now compare a range of mortgages and see how much you could save in as little as 15 seconds. That’s right: less than the time it takes to make a cup of tea or send a text. Say goodbye to pages of pointless forms - just answer a few questions about the type of mortgage you’re looking for and we’ll do the maths to tell you how much you could save. If we don’t think it’s worth switching, we’ll let you know.

If you’re unsure of your home’s value, that’s fine - when you remortgage with ClearScore, we’ll do an instant valuation of your property using the address on your credit report. (If you’re curious to see how the value of your home has changed, we’ve joined up with Yopa to offer you a free valuation.)

When’s the right time to remortgage?

Before you dive in, do your research and decide whether remortgaging is the right option for you. If your home has increased in value, or you want to overpay on your mortgage but your current lender won’t let you, then remortgaging is something you might want to consider. One of the most popular times to remortgage is when you’re approaching the end of your fixed-rate mortgage - we explain more about this below. Either way, we’ll let you know whether you’re better off switching or staying.

Remortgaging at the end of a fixed-rate period
The savings you see on your results page are calculated based on your existing mortgage. Bear in mind that at the end of your fixed-rate period, you will default to your lenders standard variable rate (SVR). The SVR is typically more expensive and could result in a significant increase to your mortgage cost. So, it usually pays to secure a new fixed-rate deal before switching to the SVR, even if your new rate isn’t as cheap as your existing one.

Remortgaging early
Check for early exit fees before switching - you’ll need to weigh up the savings made from a lower interest rate against the fees charged by your existing lender for leaving early. It may be cheaper to remain on your current mortgage until your fixed-rate period ends, and then switch to a better deal. Although you might find you can time it so that your current fixed rate ends on the same month you move to a new rate with a new provider.

Remortgage your home in 3 steps

Step 1: Confirm your remortgage details

We’ve pre-filled details of your current property and remortgage requirements based on what we already know about you, including a current valuation of your home. Update anything that’s not right to get the most accurate quote.

Step 2: Compare offers and find the best deal

We search the market to find the most suitable mortgage offers based on your details, and you’ll see these listed on the results page. Each offer shows the lender, interest rate, monthly repayment amount and how much you’ll save on monthly mortgage repayments compared to your existing deal. When comparing offers, make sure you look at the upfront fees involved as these can quickly outweigh any savings you might make from a lower interest rate. So you might be better off with a higher interest rate but a lower fee.

If you’re not sure whether remortgaging is right for you, check out these top 5 things to consider before you take the plunge.

Step 3: Apply online

Once you’ve applied, the lender will send you a binding offer (providing you pass their affordability and eligibility checks - make sure your credit score’s up to scratch before applying). We’ll keep an eye on the market and let you know when it’s a good time to switch deals again, so that’s one less thing for you to worry about.

Think remortgaging could be the right route for you? Visit your ClearScore offers now to see how much you could save. There’s no obligation to apply, and remember that if the drawbacks outweigh the benefits, it might be best to hold off until your situation changes.

by Frankie Jones

Frankie Jones is ClearScore's in-house Copywriter. 

ClearScore exists to make your finances simple.
We offer a free service where you can handle everything to do with credit in one place. In your ClearScore account, you can see your credit score and the full details of your credit report. Your credit cards, mortgages, mobile phone contracts, loans, overdrafts and utilities all on the record. Our goal is to make ClearScore as simple, calm and straightforward as possible. Money is stressful enough.