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Comparing the cheapest remortgage deals

How do I find the best remortgage deal? Get the right advice on this here.

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By Pete Mugleston  | Mortgage Advisor Pete has been a mortgage advisor for over 10 years, and is regularly cited in both trade and national press.

Updated: 12th July 2019* | Published: 24th October 2013

When the time comes to think about remortgaging, you should always try and get the best deal possible. More and more homeowners get in touch with Online Mortgage Advisor, searching for a better remortgage deal when their current fixed-rate term comes up, or they wish to take some equity from their homes.

We’ve already helped many homeowners do just that and we want to help you secure the best remortgage rate and deal that are out there for you.

In this article we’ll discuss:

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Remortgaging for the best deal

As a homeowner it’s very rare to remain on the same mortgage until it’s paid off which is why remortgaging is something that you may do numerous times during a lifetime. Swapping your loan to a lower rate reduces the total cost of borrowing. You don’t have to stick with the same lender. However, not everyone who remortgages gets a better rate or the best deal available to them.

If you’re coming to the end of a product term, which might be a tracker rate, a discount rate, or a fixed-rate term, such as a 2, 5 or even 10-year deal, you may find it easier to remortgage with your existing provider. The same is true if you feel it’s the right time to take some money out of your home. However, while most lenders offer similar mortgages, they’re not all the same.

Indeed, depending on your situation and needs, the overall available deals can vary a lot. That’s why taking the time to compare remortgage deals or seeking advice on rates, can help you save a lot of money. You may want to alter the terms of your borrowing to reduce the overall cost. This is the time to talk to an adviser who will explain the options and benefits to you.

How do I get the best remortgage deal at the end of a fixed-rate?

Remortgaging at the end of a tracker, discount, or  fixed-rate term is something many homeowners do. Some try and find the best deal while others go for an easy option and stay with the same lender. It’s also important to note that if you try and remortgage before your fixed-rate term ends, you may have to pay an exit charge.

The rate you can secure with your current provider may be similar to other remortgage deals available. However, other details and a close look at your payments over the fixed-term or longer, could highlight a remortgage deal with a different lender that could be a better option for you.

The best way to remortgage for the best rate at the end of a product term is:

  • Get in touch with us and have a chat about your remortgage needs.
  • Let us speak with the network of remortgage experts we work with.
  • The remortgage advisor who can find you the best deal for you will be in touch.
  • After a chat with the advisor, if you can agree to go ahead with their advice, they will collate and compare the best remortgage deals across the UK for your needs.
  • Once you select a remortgage, they will help you gather all the information you need and can do much of the work.
  • You sign the agreement on the best remortgage deal for you.

To kick off your remortgage application, make an enquiry to speak with one of the whole-of-market brokers we work with.

Can I remortgage for additional borrowing?

Yes, in most circumstances, remortgaging your property for additional borrowing and withdrawing some of the value that has accrued, is something you can do. To be able to do this, you will need to have built some equity up in your home, at least 5%.

In some cases, you may have put down a deposit of 20% or more when you took out your initial mortgage. By remortgaging for a better deal, you may even be in a position to requisition some of that initial deposit out, on top of any other additional equity you wish to take out.

Do I have to give certain reasons to withdraw equity from my home?

Reasons for remortgaging for a better rate vary and reasons for taking equity from your home can also differ widely. Lenders will accept most reasons for a home equity withdrawal remortgage and you can still get a better deal than your current rate.

But, typical reasons for equity withdrawal while remortgaging for a better deal in the UK include:

Can I remortgage onto an offset deal?

Yes, when you look for the best remortgage deals out there, you can opt for an offset mortgage. This can work particularly well for those who have built up a good savings nest egg. That’s because an offset mortgage allows you to offset your savings against your mortgage debt, which reduces the amount of money you’re charged interest on.

Yes, you lose out on the interest you earn on your savings. However, with the Bank of England’s interest rate being so low for some years now (at the time of writing, 15/1/19), the amount of interest you can earn in a regular savings account is lower than the rate of interest most homeowners are charged on their mortgage.

That means although your savings remain as they are and don’t earn interest, your outgoings are lower because the proportion of your mortgage that you pay interest on is lower.

How do I find the best remortgage rates?

With a variety of online sites providing mortgage interest rate calculators and comparisons, you might think that finding the best remortgage rate is a simple task. However, not all of those rates and deals are available to everyone and the fees and costs may not always be obvious.

In addition, while the comparison site you use may seem to represent all the remortgage lenders out there, that’s rarely the case. In fact, some of the best remortgage deals for your specific circumstances, may only be available through a mortgage advisor.

You can also speak with your existing mortgage provider to find out the remortgage rates they offer. In some circumstances their best remortgage deals with the lowest rate may be among the best in the UK. But you won’t know without some serious legwork or help from an expert.

If you get in touch with us, we’ll connect you with one of the experienced remortgage advisors we work with. They will then give you a call to discuss your remortgage needs and how they can get the best deal for you.

Best fixed rate remortgage deals

There are many fixed rate remortgage deals available and finding the best one for you isn’t always easy. First of all you need to have an idea of the background as to where Bank of England interest rates might be heading in the next two-to-five years.

If they’re on the way up, it can make sense to fix for longer. If, however, interest rates are expected to be reduced in the coming years, then a shorter fixed rate deal might work out to be the best remortgage option.

Other details to consider include how long you plan to remain in your current home. Of course, plans can change, but if you think it’s a long-term home, then a longer fixed-rate remortgage rate could be a viable option.

Fixed-rate remortgage deal options

The most common terms for fixed-rate mortgages and remortgage deals are:

  • 2-year fixed rates.
  • 5-year fixed rate deals.
  • 10-year fixed rate remortgages.

Best 2 year fixed remortgage rates

In many cases the 2-year fixed rate remortgage deals can offer the cheapest rate. However, as most mortgages include a fee, you’ll have to pay another fee in just two years time. This means unless the interest rate of the remortgage deal on offer is much lower than other options, this might not be the best overall deal for you.

Best 5 year fixed remortgage rates

If you’re want to find the best remortgage with a 5-year fixed rate deal, there tends to be a large number of options out there. They range from low rates, to no fee remortgage deals and a range of other benefits.

The key to making sure you end up on the best interest rates is applying through a broker who has access to the entire market - make an enquiry here to speak with one today.

Best 10 year fixed remortgage rates

For those of you thinking about locking in to a 10-year fixed-rate remortgage deal, you’ll need to speak to a whole-of-market broker who can compare every available deal for you  to ensure you get the best rate possible and one that is better than you could get on a 5-year deal. However, it’s longer before you’ll need to pay another remortgage fee and you’ll also know exactly what your mortgage payments will be for the next 10 years.

When you take a look at the remortgage rates that are available, you’ll likely find there are a lot of 2-year and 5-year fixed remortgage deals. Although, the number of 10-year fixed rate mortgage deals are growing. You should bear in mind there is likely to be an early repayment charge if you want to come out of your deal during the product term.

Is the best remortgage rate the same as the cheapest?

We’ve just discussed that the interest rate on your remortgage deal isn’t the only detail that counts when working out if it’s the best option for you. Fees come into account, as do charges for things like the survey that’s likely required if you’re changing providers.

That means a glance through re-mortgage interest rates isn’t enough to ensure you’re getting the overall cheapest deal. You can find all the other details and charges in the remortgage options you’re considering.

It’s not always easy to compare them and work out which remortgage deals are better for you - this is where the advisors we work with some in. They have access to the entire market and can help you find the best deals you qualify for,.    

How do I compare remortgage rates and deals?

To get the best remortgage rate and overall deal, you’ll need to compare what’s on offer. Sound simple? It can be, if you only stick with like-for-like remortgage options.

To be certain you’re getting the best remortgage deal and there are no better ones out there, you should really compare the whole-of-the-market. That means remortgages across different product terms and other options, such as fee free, cash back and paying for your survey.

This is something you can do yourself with plenty of research and using numerous different websites from individual providers to comparison sites. However, the easiest and quickest way to ensure you’re getting the best possible residential remortgage rate and deal for your needs is to speak with an expert.

The remortgage advisors we work with are experienced in this area and understand the different needs of homeowners. They know which questions to ask, which providers to approach as well as the kind of rates and deals that are available as well as the Bank of England background, relating to the likely future path of interest rates.

They can also give you a much wider, whole remortgage market comparison.

Good, experienced remortgage advisors and brokers, like those we work with, always work to ensure you get the right remortgage for you, with the cheapest rates and best overall deal, whether its a fixed-rate or other type of mortgage, available in the UK.

Remortgage deals calculator

Remortgage calculators can help you find the best deal for your needs. The OMA site has a remortgage calculator to help with your comparison of rates and deals.

It can also be used to work out your potential remortgage repayments on different loan-to-value levels. Keep in mind that mortgage calculators will only give you a rough idea of the remortgages you qualify for - every lender uses different calculations and the deals they will offer can vary across the board.

With this in mind, the best course of action is to speak to a whole-of-market broker who can pair you up with the lender offering the best remortgages for a customer with your needs and circumstances.

Remortgaging and LTVs

When you initially buy a home, the interest rate and mortgage type you can secure depends, in part, on the LTV, or loan-to-value-rate of your loan. The same is true when you’re searching for the best remortgage deal.

The LTV is your deposit against the loan as a proportion of the value of your property. If you’re wondering how to work out your LTV when remortgaging, it just a case of comparing how much you want to borrow compared with how much equity is in your home. So,if you have 10% equity, then you will require a 90% LTV remortgage. If you have 30% equity, the LTV of your remortgage will be 70%.

In most cases, the lower the LTV rate, the lower the interest rate of mortgage or remortgage. That’s because the loan is typically lower and the risk to your lender is lower too. Researching the market or speaking with an experienced advisor can help you understand and calculate the maximum loan-to-value remortgage you can secure.

Can I remortgage with a 100% LTV?

Yes, although 100% loan to value (LTV) mortgages are difficult to come by and are usually reserved for customers with a guarantor, refinancing a 100% mortgage is indeed possible. That said, you will likely be limited to the product transfer deals on offer from your current provider, assuming they offer no-deposit mortgages under such niche circumstances.

If you’re remortgaging with 100% LTV, the rates on offer are unlikely to  be the best available across the whole market. Provided you can secure your 100% LTV remortgage, this probably isn’t the most important detail of the deal to you.

How do I find the best remortgage 95% LTV deal?

Finding the better 95% LTV remortgage deals can also take time and research. As with all remortgage deals, the way to ensure you get the best one, is by comparing a number of different details:

  • Re-mortgage interest rate.
  • Re-mortgage fees.
  • Re-mortgage benefits.
  • Any fixed-rate term.

Once you’ve considered and compared all of those elements of your remortgage deal, you should be able to see which ones are better than others. However, you might find that because  the number of 95% LTV remortgage deals on the market are growing, there still aren’t too many.

In fact, for many homeowners, it could work out cheaper to revert to the standard variable rate on offer from their lender.  

Remortgaging with a 90% LTV

If you’re looking for a 90% LTV remortgage deal, that means you’ll be leaving 10% of the value of the property in the property and borrow the remaining 90%. As the equity you leave in your property grows, the interest rate you can secure on remortgage deal should begin to fall. That’s a positive change when it comes to your regular monthly payments.

A 90% LTV remortgage deal tends to be available across most products, fixed rates, variable interest rate, offset remortgages, fee free and cashback option. This means there are more products to consider and compare.

This could be considered  both a positive and negative. Positive because it’s a more competitive product area and you should be able to find better remortgage deals on offer. But, it’s a negative if you’re researching the market yourself as you’ll have a lot of information to wade through.

This is where an experienced remortgage advisor can be very helpful. They will already know the market, what’s available and more importantly, what 95% LTV remortgage products are best for you.

Are there many 85% LTV remortgage deals out there?

There are a good number of 85% LTV remortgage deals available, plenty of which could be considered best buys among the whole market. There are numerous fixed-rate deals across various terms, including 2-, 5-, and 10-years.

The reasons for the larger number of remortgage deals at this level is because the risk is lower but the loan is still substantial, making it a good balance for lenders.

How to find the best 80% LTV remortgage deal

If you want to remortgage with an 80% LTV, you will likely see some good rates and deals on offer. With 20% of the value of your property remaining lenders are more likely to offer incentives, including fee free remortgage deals and best buy benefits, to secure your custom.

Comparing all of the possible deals, however, will probably take you some time, particularly if you want to be certain you’ve got the best 80% LTV remortgage deal for you.

What are the best 75% LTV remortgages rates?

Right now, there are a large number of 75% LTV remortgage deals available with rates of under 2% on a 2-year fixed rate basis currently available. There are also a few under 2% on a 5-year fixed rate term.

Indeed, there are many benefits on offer for a borrower with a quarter of the value of their property intact. Wading through the market will take time, so the most efficient way to get the better remortgage deals out there is to apply through a whole-of-market broker, like the ones we work with.

Can I get a good deal for a 70% LTV remortgage?

The short answer to this question is: yes, you can get a good deal for a 70% LTV remortgage, as long as you meet the lending criteria for this product.

Even if you’re borrowing more and taking some equity out of your property, leaving 30% of the value of the home intact is a risk more lenders are happy to take.

As before, you will likely be able to secure a remortgage deal that has a number of benefits in addition to a cheap rate, as long as you apply through a whole-of-market broker.

Finding the best remortgage deal for a 65% LTV

If you’re remortgaging your home and only require a 65% LTV, you should be able to get a low interest rate, particularly on a fixed-rate deal over two-to-five years.

More lenders are willing to take a risk on homeowners with over a quarter of equity in their homes. This means you should have plenty of choice, better rates and benefits to look through - make an enquiry to speak with an expert broker who can help you choose the right deal.

Are there any great 60% LTV remortgage deals?

Again, if you’re looking to remortgage with a 60% LTV, then you can find plenty of deals with favourable rates  when you consider fixing for two years. Even if you look at 10-year fixes, you can secure a number of competitive remortgage deals if you apply through a whole-of-market broker.

Some providers will reserve their best 60% LTV remortgage deals for existing customers, which is when it does pay to remain with the same provider. However, that’s not always the case which means it’s still important to compare your options after looking across the whole mortgage market, or better yet, have one of the advisors we work with do it for you!

Speak to a whole-of-market broker about finding the best remortgage deal

To find out more about securing the best remortgage deal, no matter what loan-to-value you need or if you’re looking for a specific rate or benefit, speak to Online Mortgage Advisor.

Our team can put you in touch with the right remortgage deal advisor from the specialist experts we work with. They will then give you more details on the right way forward for your remortgage needs.

Call Online Mortgage Advisor today on 0800 304 7880 or make an enquiry here.

Then sit back and let us do all the hard work in finding the advisor with the right expertise for your circumstances.  We don’t charge a fee and there’s absolutely no obligation or marks on your credit rating.

Updated: 12th July 2019
OnlineMortgageAdvisor 2019 ©

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The info on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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