Mortgage comparison

Remortgage vs Standard Mortgage

A remortgage usually reviews borrowing on a property you already own. A standard mortgage is commonly used to buy a property. The right route depends on your goal, costs, eligibility and lender criteria.

Quick comparison

Both routes involve secured borrowing and lender assessment, but they solve different problems. Use this table to decide which calculator or adviser discussion is more relevant to your situation.

Comparison of remortgages and standard mortgages
Criteria	Remortgage	Standard mortgage
Main purpose	Switching the mortgage on a property you already own, either to a new lender or sometimes through a product transfer with your current lender.	Taking a mortgage to buy a property, such as a first home, next home or investment property.
Property stage	The property is already owned and the existing mortgage balance, term and current deal need to be reviewed.	The property purchase, deposit, valuation and legal completion are usually part of the same process.
Common timing	Often reviewed before a fixed, tracker or discount period ends, or when circumstances change.	Usually arranged before exchange and completion on a purchase.
Key figures to compare	Current balance, remaining term, current rate, new deal assumptions, fees, early repayment charges and any extra borrowing.	Purchase price, deposit, loan-to-value, income, commitments, product fees, term and expected monthly repayments.
Checks and documents	A new lender normally assesses affordability, credit history, property value and current mortgage details.	A lender normally assesses affordability, credit history, deposit source, property value and purchase documents.
Legal and valuation work	May involve legal work and a valuation when switching lender. A same-lender product transfer may involve less administration.	Usually involves conveyancing, valuation and purchase-related checks before completion.
Cost considerations	Product fees, legal costs, valuation costs, exit fees and early repayment charges may affect the overall comparison.	Product fees, valuation, legal fees, stamp duty where applicable and moving costs may affect the total budget.
Outcome	A new mortgage deal on the same property if accepted by the lender and completed.	A mortgage used to complete a property purchase if accepted by the lender and completed.

Pros and cons

The points below are general information only. They are not mortgage advice and do not mean a product will be available or suitable for you.

Remortgage

Potential advantages

Can let you compare your current deal with possible new deal assumptions before your current rate ends.
May give access to different product options, subject to lender criteria and your circumstances.
Can be used to review term, repayment type or additional borrowing where suitable and accepted by a lender.

Points to check

Fees, valuation, legal work and early repayment charges can affect whether switching is worthwhile.
A new lender will usually carry out affordability and credit checks.
Adding fees or extra borrowing to the mortgage can increase the total amount repaid.

Standard mortgage

Potential advantages

Designed around a property purchase, including deposit, valuation and completion requirements.
Lets you compare product types, terms and repayment assumptions before applying.
Can help set a realistic purchase budget when used alongside affordability checks.

Points to check

Approval, product choice and the final rate depend on lender criteria and your circumstances.
Purchase costs such as legal fees, valuation costs and stamp duty where applicable need to be budgeted for.
A mortgage offer can be affected by valuation issues, document checks or changes before completion.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Compare Mortgage Rates is not a lender. Website content and calculator outputs are general information only and are not mortgage advice, product comparisons, offers or guarantees of approval, rates or savings.

How to decide where to start

Start with your objective. If you already own the property and want to review a current mortgage, compare remortgage assumptions and check whether any early repayment charge applies. If you are buying, focus on deposit, affordability, purchase costs and the monthly repayment estimate.

In both cases, compare the total cost as well as the monthly payment. A lower payment can reflect a longer term or added fees, which may increase the total amount repaid.

Frequently asked questions

Is a remortgage the same as a standard mortgage? +

No. A remortgage usually replaces or changes borrowing on a property you already own. A standard mortgage is commonly used to buy a property.

Can remortgaging reduce monthly payments? +

It might reduce or increase payments depending on rates, fees, term, balance, early repayment charges and lender criteria. Calculator outputs are estimates only.

Do I need affordability checks for a remortgage? +

If you switch to a new lender, affordability and credit checks are usually required. Product transfers with the same lender may involve fewer checks, depending on the lender and the change requested.

Which calculator should I use first? +

Use the remortgage calculator if you already own the property. Use the repayment or borrowing calculator if you are planning a purchase.

Rate comparison with context

Compare Mortgage Rates is built around comparing mortgage costs beyond the headline rate. Product fees, term, loan-to-value and lender criteria can all change what is appropriate for a borrower.