In the process of a remortgage? Then you may have many questions about how they work. No matter what your situation is, knowing the ins and outs of remortgaging can be useful moving forward.
As a mortgage broking firm, one of the questions that we get asked consistently is whether you need to put down a deposit for a remortgage on your property.
In this blog post, we are going to be discussing some of the biggest questions many people have regarding remortgages as well as whether you truly need a deposit for a remortgage.
When Can I Remortgage My Property?
There can be some confusion as to how remortgaging works, with timings being a big issue. Most lenders typically allow remortgaging after you’ve been on the title deeds for at least 6 months. This is the standard waiting period for most conventional remortgage options.
However, some lenders offer “day-one remortgage” options, allowing you to apply for a remortgage immediately after purchasing a property. These are more specialised products and may have stricter requirements.
You can start looking into remortgage options about 6 months before your current mortgage deal ends. This gives you time to find a new deal and avoid moving to your lender’s standard variable rate (SVR).
Why Might Someone Want To Remortgage Their Home?
There are plenty of reasons why someone might want or need to take out a new mortgage for their home. Here are some of the potential reasons:
- To get a better interest rate – If market rates have dropped or the homeowner’s financial situation has improved, they may be able to secure a lower interest rate, reducing monthly payments.
- Current mortgage deal is ending – When a fixed-rate or introductory period ends, homeowners often remortgage to avoid moving to their lender’s higher standard variable rate.
- To borrow more money – Remortgaging can allow homeowners to release equity for home improvements, debt consolidation, or other major expenses.
- To change mortgage terms – Some may want more flexible features like the ability to make overpayments or take payment holidays.
- To take advantage of increased home value – If the property’s value has increased, the homeowner may be able to access better rates due to a lower loan-to-value ratio.
Do You Need A Deposit To Remortgage?
The main question we have briefly discussed is whether you need a deposit for your remortgage… Luckily, in most cases, no! Since you already own the property you are remortgaging, there is no need to put down another deposit for the new contract.This can be a very relieving thing to hear for many people since the main issue that people seem to find when buying a new house is the hefty price of the initial deposit. This is one of the biggest advantages of a remortgage.
When Might I Need a Deposit for a Remortgage?
While you do not usually need a remortgage deposit, there are a few occasions when this might be necessary; these include:
- Adverse Credit History – having a checkered credit history can make you a risk for lenders, so they may ask for a deposit to reduce their risk.
- High Loan-to-Value (LTV) Requests – If you want to borrow a high percentage of your property’s value (usually above 90%), a lender may require a deposit to bring the LTV within their acceptable range.
- Releasing a High Amount of Equity – If you’re looking to release a large amount of equity, a lender might ask for a deposit to ensure the new loan doesn’t exceed their LTV limits.
Can I Remortgage to Buy Another Property?
Another fairly common question is whether you can take out a remortgage to buy another property, and yes, you can! This is another one of the great reasons why you may want to consider remortgaging your property.
The process involves refinancing your existing mortgage to access the value built up in your home, otherwise known as releasing equity.
This money can then be used as a deposit for a new property or to buy the new place outright, if you have the funds. One important thing to keep in mind is that the monthly payments for a remortgage can be quite high.
Having these sizable payments along with your regular mortgage payments for another property can add up and affect your finances. So, it’s important to think carefully about this before you decide.
Are Mortgage/Remortgage Rates Getting Lower?
As of May 2025, all major UK lenders are offering fixed mortgage deals with interest rates under 4%. The lowest two-year and five-year fixed rates are currently 3.75% and 3.83%, respectively, which is lower than at the start of the year when rates hovered around 4%.
If you are looking to buy your first home in the coming years or even just looking to move out of the current house you live in, then this is surely encouraging news for the future!
Key Takeaways
- There is NO deposit required for a remortgage, except for certain circumstances.
- The main reasons to remortgage are as follows: better interest rates, avoiding higher rates after your mortgage ends, lending more money for home improvements, changing to more flexible mortgage terms and taking advantage of increased property values.
- Generally, you can remortgage your property after around 6 months of ownership.
- All UK lenders are offering deals with interest rates below 4%.
How Can JG Mortgage Services Limited Help You?
At JG Mortgage Services Limited, we pride ourselves on our personalised approach to each of our clients. We make sure that the experience you have with your mortgage or remortgage is as smooth and seamless as possible.
If you need any kind of support with your remortgage, may this be just some extra advice or for someone to fully take control of the process for you, we are happy to help in any way you see fit.
We can handle all of the complex aspects of paperwork and much more, so that you can rest assured that you do not need to worry about the logistics of your move. You can simply focus on the move, we will take care of everything else for you!
Joshua Griffith is the founder of JG Mortgage Services Ltd, established in 2021. With over a decade of experience in UK banking, he brings a client-focused approach to mortgages. Passionate about helping families achieve homeownership, Joshua combines industry expertise with personalised support.
