Remortgage or homeowner loan?

A remortgage replaces your existing mortgage. A homeowner loan is a separate loan secured on your home, alongside your mortgage.

The right route depends on your circumstances, your current mortgage, the costs and what you want to do.

With a remortgage your current rate ends, and there may be an early repayment charge for leaving your deal. With a homeowner loan your current mortgage, and its rate, stays exactly as it is, and there are no early repayment charges on your mortgage, because your mortgage does not change. You keep making two payments, though: your mortgage, plus the loan. And a homeowner loan's rate may be higher than a mortgage rate. Both routes are secured on your home, and the total cost over the term matters more than the monthly payment. A broker from our panel can explain which suits your circumstances.

Securing unsecured borrowing against your home changes the risk. A lower monthly payment can still mean repaying more in total over a longer term.

You do not have to consolidate your debts to remortgage. Debt consolidation may not be right for you. Your mortgage adviser will discuss your options with you to help you understand what suits your circumstances.

Consolidating is an option, not a requirement - an adviser will check whether it suits you.

Ask the adviser to explain fees, any early repayment charges, the repayment term and the total amount repayable for each suitable option.