Types of Remortgages

SVR or Standard Variable Rate Remortgages

A Standard Variable Rate (SVR) is the standard rate of interest a lender charges for the Remortgage Loan. It is normally 1%-2% above the Bank of England’s base rate and each lender will increase or decrease their SVR in line with any changes made to the ‘base rate’ by the Bank of England’s Monetary Policy Committee.

If you are linked to the SVR your mortgage repayments can go up and down - perhaps even on a monthly basis.

Fixed Rate Remortgages

A Fixed Rate remortgage is where the remortgage rate is set or fixed at a particular level of interest, this is normally for a period or 2-5 years.

No matter what happens to the base rate or the lender’s standard variable rate (SVR) during that period, the remortgage rate you pay will remain at the same level for this fixed period.

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Discounted Rate Remortgages

A Discounted Rate Remortgage offers you a discount on the lender’s Standard Variable Rate (SVR). The discount might be set at 2% or 3% below the SVR applicable for a certain length of time. E.g., if your lender’s SVR was 5% and you were offered a 2% discount, you would be charged a rate of 3% interest on your loan. If your SVR increased to 7%, then your remortgage rate would go up to 5%, and so on.

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Bad Credit Remortgages

For those who have been refused a mortgaqe elsewhere due to defaults arrears, IVA's, Discharged Bankruptcies etc. It makes sense to seek the advise of a specialist who will scour the remortgage market on your behalf for the best bad credit remortgage deal for your personal needs.

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Tracker Remortgages

A Tracker Remortgage has a rate of interest set slightly above the Base Rate, but usually just below the lender’s Standard Variable Rate (SVR). As the Base Rate is increased or decreased, your tracker rate remortgage moves accordingly and your monthly payments will go up and down, even if your lender does not change their SVR. Very similar to a Variable Rate Remortgage.

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Capped Rate Remortgages

A Capped Rate Remortgage works in a similar way to a Fixed Rate Remortgage. The rate of interest you are charged is linked to the Standard Variable Rate (SVR), but a maximum interest rate or ‘cap’ is set. If the SVR increases, so do your monthly repayments but only up to the rate set by the cap. Even if the SVR increases above the capped rate, your remortgage repayments will not go any higher.

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Capped & Collared Rate Remortgages

A capped and collared rate remortgage is very similar to a standard capped rate remortgage. The only difference is that the interest rate applied to the debt is also collared, meaning the rate payable will not fall below a set level nor rise above the cap. The time frame for the collar and cap can varry.

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Flexible Repayment Remortgages

Flexible Remortgages enable the borrower to make remortgage over-payments and underpayments and sometimes even take a break from making any remortgage repayments at all.

Some products also allow you to treat them a bit like a bank account, meaning that you can have your salary paid into your ‘account’ and giving you the option to draw down additional cash (a bit like an overdraft facility) if you need it. See Off Set Remortgages

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Cash Back Remortgage

A Cash-back Remortgage is not really a remortgage in itself, but a special offer associated with certain types of remortgages - Where cash-back is given back to the applicant as a cash lump sum on the completion and acceptance of the remortgage application. Cash-back remortgage deals can range from a few hundred to several thousand pounds.

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Off Set Remortgage

Off Set Remortgages offer the functionality of a savings account linked to your mortgage account, but instead of earning interest on your savings, your money is used to "reduce" the balance of your mortgage.

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Long Term Remortgages

Long Term Remortgages offer repayments stretched out over a greater period of time; the monthly repayment is also often greatly reduced due to the extended term. These are great for those seeking to reduce their monthly remortgage payments. You can get a wide variety of long term mortgages, taking various characteristics from each of the above.

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