Mortgage guides

The equity in your home is the amount that you own outright – the deposit you paid plus all your contributions in the meantime. If your home is worth £350,000 and you have £200,000 left to pay, you have £150,000 worth of equity in your home. When you remortgage, you may be able to take some of this money as part of your new deal. As you're borrowing more money, it will likely increase your monthly payments.

Yes, you could put some of the equity in your property towards a deposit for another purchase. You may need a buy-to-let mortgage if you're investing in property or you might be looking for a second home for business or lifestyle reasons.

You'll need to instruct a conveyancing solicitor if you're remortgaging and changing lenders or if you're adding someone to the mortgage (or removing someone). In these instances, the same paperwork and legal hurdles are in place as when you buy a home. If you're sticking with your current lender, it's classed as a product transfer and there's much less paperwork. As such, you wouldn't need a solicitor.

• Product fee: This may be referred to as the arrangement fee or application fee – or whatever name a lender decides to put to it. This essentially covers the work the lender needs to do to set up your new mortgage. It can be paid upfront or added to the mortgage amount and paid off over time, which adds interest.
• Conveyancing fee: If you're switching mortgage providers or altering your terms in another way, you may need to factor in solicitor costs.
• Early redemption charge: If you're getting out of your current deal before its fixed term is over, an ERC will likely be charged as a percentage of the amount you still owe. Your lender may also apply a fixed exit fee on top of this. If you're setting up a new mortgage deal ahead of your fixed term ending, it's important to know exactly when the end date is and share this with your solicitor so you avoid paying unnecessary fees.
• Deeds release fee: This fee is paid if you're changing your mortgage to a new lender. It covers your previous provider forwarding the property's title deeds to your solicitor. It's worth speaking to your current provider about this, as it's not charged by all lenders.
• Remortgage broker fee: If you use a broker to try to find the best remortgage deal, they may charge a fee for their services. At Alexander Hall, we don't charge anything for remortgage advice. We charge a typical fee of £499, payable on application, for standard residential mortgage contracts.

Bad credit is not necessarily a barrier to getting a remortgage, although it may change your options if your financial circumstances have worsened since your last application. You might find that a product transfer with your current lender is not available, or you have to agree a deal on less favourable terms than your existing one.

In just about all instances, you wouldn't need to pay any kind of deposit when you remortgage. Your loan-to-value ratio will be calculated using your home's value and the remaining amount on your mortgage - or the amount you're borrowing if you plan to release equity.

Remortgaging is often an easier process than taking out a mortgage on a new home, and the timescale for completion is generally more predictable. Checking for deals well in advance of your fixed term ending, being clear about your plans to withdraw equity and organising financial documents can all help smooth the process further.

Understanding your property's estimated value can help you get the best possible deal when looking to remortgage – especially if your home has increased in value since you bought it. You can use online checkers for a rough estimate or ask an estate agent to value your home, which they will usually do for free.