Best remortgage lenders how to compare your options

There isn't one lender that qualifies as the best remortgage lender for everyone. The right lender for your situation depends on your loan-to-value, the type of income you have, your credit history, and the reason you're remortgaging in the first place, whether that's a deal ending, wanting to release equity, or moving to a different type of deal.

Rather than starting with a shortlist of well-known names, it helps to start with your own circumstances. Work out your current loan-to-value, check whether your income is straightforward or complex, and be honest about your credit history. From there, you can compare a wide range of lenders that are actually likely to accept your remortgage application, rather than assuming your current lender's offer is the only option, or the best one.

Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. Comparing properly before you commit to a new deal is worth the extra time it takes.

Lenders offering remortgages generally fall into a few categories, each taking a different approach to risk, criteria, and how quickly they can turn around an application. Understanding the differences helps explain why one lender might decline a remortgage application that another lender approves without any issues.

A number of lenders only distribute certain remortgage products through brokers rather than offering them directly to the public, particularly deals aimed at more complex circumstances or releasing equity. Comparing a wide range of lenders, rather than going straight to your current provider, tends to give a fuller picture of what's realistically available. Our guide to mortgage lenders covers these categories in more depth if you want the wider picture beyond remortgaging specifically.

When your deal ends, you generally have two choices: stay with your current lender on a product transfer, or switch to a new lender through a full remortgage. Comparing lenders properly means weighing up both options rather than assuming a product transfer is automatically the easiest or cheapest route.

A product transfer usually involves little or no fresh affordability checking and can complete quickly, but your current lender won't always offer its most competitive rate to existing customers. A full remortgage opens up a wider range of lenders and often includes free legal work and a free valuation, though it typically takes longer and involves a new affordability assessment.

Our product transfer vs full remortgage guide sets out the trade-offs in more detail if you're weighing this up.

The table below is a general starting point, not a guarantee of acceptance. It's meant to narrow your search rather than replace a proper comparison of a wide range of lenders against your actual circumstances.

If any of these apply to you, our guides on remortgaging with bad credit and releasing equity when you remortgage go into more detail. If you're worried about affordability or existing debt, free and impartial guidance is also available from MoneyHelper on 0800 138 7777.

Fees vary between lenders and can make a real difference to the overall cost of switching, so it's worth comparing them alongside the rate rather than looking at the rate on its own.

For a closer look at how fees and rates interact, see our remortgage rates guide.

You can approach lenders directly, including your current one, or use a broker to compare a wide range of lenders on your behalf. Going direct can suit homeowners with straightforward circumstances who are comfortable researching the market themselves.

A broker tends to be more useful if your circumstances are anything other than straightforward, since they can compare a wide range of lenders and match you to ones likely to accept your remortgage application, rather than you approaching lenders one at a time. Advisors are authorised and regulated by the Financial Conduct Authority, and most advised sales mean the advisor takes responsibility for recommending a suitable product for your circumstances.

It's worth being realistic too: even a broker working with a wide range of lenders can't access the entire market, and some lenders only deal directly with customers. Our mortgage broker vs going direct guide covers the full trade-offs.

A few mistakes come up repeatedly when people compare remortgage lenders on their own:

• Accepting a product transfer without comparing the market. Your current lender rarely offers its most competitive rate to existing customers by default.
• Focusing only on the headline rate. A lower rate with a higher arrangement fee can work out more expensive overall, depending on how much you're borrowing.
• Leaving it too late. Waiting until your deal has already ended risks a spell on your lender's standard variable rate while a new application is processed.
• Applying to multiple lenders at once without checking first. Several hard credit searches in a short period can affect your credit score. A mortgage in principle with a soft search is usually a safer first step.
• Assuming one decline rules out every lender. Lenders apply different criteria, so a decline from one doesn't necessarily reflect your chances with another.
• Not accounting for fees and charges. Valuation fees, arrangement fees, and legal costs all add to the overall cost of remortgaging.