What is Mortgage Refinancing?

Mortgage refinancing involves taking out a new loan to replace your existing mortgage, often to improve the terms or gain financial flexibility. Reasons to refinance include:

  • Reducing your monthly repayments by securing a lower interest rate
  • Switching from a variable to a fixed rate mortgage
  • Adjusting the length of your mortgage term
  • Consolidating high-interest debts into your lower interest home loan
  • Releasing equity from your property to access cash

Refinancing can help you improve affordability, reduce costs, or access additional funds if needed. However, finding the optimal deal requires research and mortgage market expertise.

The Benefits of Using a Mortgage Broker When Refinancing

An experienced mortgage broker can provide guidance and support throughout the refinancing process. Here are some of the key advantages of using one:

Access to Exclusive Mortgage Deals

Lots of lenders save their best rates for brokers. Brokers have a wider range of mortgage deals that you won’t always see if you go straight to the bank or lender yourself. With a broker, you’ve got more options for loans and interest rates to choose from.

Expertise Navigating the Market

With thousands of mortgage products and fluctuating rates, the market is complex. An established broker will have extensive knowledge to match you with deals that align with your goals and situation. Their expertise saves you time researching.

Assistance With the Application Process

Collating paperwork and applying for a mortgage is demanding. An experienced broker will handle the application, prepare necessary documents, liaise with lenders and respond to any queries. This guidance simplifies the process.

Mortgage Advice Tailored to Your Needs

Every customer’s circumstances are different. A whole-of-market broker will assess your income, credit history and objectives to recommend products specifically suited to you. Their insight ensures you make the optimal refinancing decision.

Access to Niche and Specialist Lenders

If you have a complex income or unique borrowing needs, a broker may suggest alternative lenders outside the high street. Their extensive industry connections give you more choice.

Negotiation to Secure You the Best Deal

Brokers develop strong relationships with various lenders over time. They can negotiate with underwriters to help you secure the most favourable interest rates or terms based on your situation. Their negotiations could save you thousands.

>> More about the Benefits of Using a Mortgage Broker

How Do Mortgage Brokers Get Paid for Refinancing?

In the UK, most mortgage brokers don’t charge the borrower. Instead, they receive a commission from the lender upon completion of the mortgage. 

This commission is usually 0.3% to 0.5% of the loan amount. While some may charge small admin fees, reputable brokers won’t charge you for their services.

FCA Regulation for Consumer Protection

It’s essential to check brokers are authorised and regulated by the Financial Conduct Authority (FCA). This ensures they adhere to strict standards and offer advice suited to your needs. Regulation gives you recourse if problems arise.

Key Questions to Ask a Broker When Refinancing

Vetting potential brokers with these questions can help assess if they’re the right fit:

  • Are you fully authorised and regulated by the FCA?
  • Do you have access to exclusive refinancing deals across a wide range of lenders?
  • What areas of the mortgage market do you specialise in?
  • Will you provide written recommendations outlining why you suggest certain products?
  • What are your fees, charges and commissions?
  • How will you assist me through the application and underwriting process?
  • Do you have professional indemnity insurance and public liability cover?

A reputable broker will be happy to answer your questions and demonstrate their value.

Should I Use a Broker or Go Direct to a Lender?

While applying directly with banks or building societies is an option, data indicates over 70% of UK mortgage borrowers use a broker. 

This is driven by brokers’ wider product access, market expertise and ability to handle applications efficiently.

Consider using a broker if you:

  • Want experienced guidance on suitable mortgage products
  • Have a complex income or mixed credit history
  • Seek access to exclusive refinancing deals not advertised publicly
  • Don’t have time to compare products from multiple lenders
  • Want help managing paperwork and liaising with lenders
  • Need someone to negotiate with lenders on your behalf

However, if you need a straightforward mortgage and are comfortable doing research, applying directly may suffice.

How Refinancing Brokers Assist You

Refinancing can encounter roadblocks like:

  • Struggling to keep pace with the changing mortgage market
  • Feeling overwhelmed by the maze of lender products
  • Tackling complex application paperwork
  • Facing early repayment penalties from your current lender
  • Having credit challenges that make qualifying difficult
  • Determining which loan type best fits your needs

The right refinancing broker helps you navigate obstacles to ensure mortgage success. Their expertise steadies your course through market fluctuations and paperwork requirements.

Skilled brokers negotiate with lenders to secure you the most favourable terms. Their tailored guidance smooths the journey by saving you time, money, and stress. With an experienced broker guiding your refinancing, you can stay confident you’ll choose the optimal loan solution.

Comparing Brokers vs Going Direct for Refinancing

Using a Specialist Refinancing Broker

  • Customised guidance aligned with your financial situation
  • Time savings as they filter options to suit your goals
  • Impartial insights guiding optimal decision making
  • Access to wider product ranges from an extensive lender network
  • Assistance pinpointing the best value rates for maximum savings
  • Qualified professionals with industry recognized certifications
  • Higher chance of underwriting success through a streamlined process

Applying Directly to a Lender

  • You control the lender selection
  • Faster if you have an existing relationship
  • Avoid broker fees


  • Limited to one lender’s product range
  • Guidance potentially biassed toward the lender’s deals
  • Focus only on the lender’s qualifying criteria
  • Less chance to compare rates across the broader market
  • Higher likelihood of rejection without a broker’s expertise
  • More time spent assessing each lender staff’s skills

When Does Refinancing Make Sense?

While refinancing has benefits, it only makes financial sense in certain situations:

  • Interest rates have gone down – You could save money if the new rates are at least 0.5% lower than what you’re paying now.
  • Your credit score is better – A higher credit score since you got your mortgage could mean lower interest rates are now available to you.
  • You’ll stay in your home for a while – If you plan to live in your home for at least another three to five years, the savings from refinancing could outweigh the costs.
  • You need cash – If your home’s value has gone up, you could refinance and get some of that equity in cash for other big expenses.
  • You’re struggling with payments – If your monthly mortgage payments are too high, refinancing might help you find a payment plan that fits your budget better.

Talk to a mortgage broker to see if refinancing fits into your financial plan. They can help you weigh the benefits and costs based on your specific situation.

The Refinancing Process Explained

Here are the key steps when refinancing your mortgage through a broker:

  • Initial consultation – The broker assesses your circumstances to recommend suitable products.
  • Application – The broker assists compiling documents, submits your application and liaises with lenders.
  • Valuation and assessment – The property is valued and income assessed by the new lender.
  • Mortgage offer – Details the rate, fees and terms of the new loan for your approval.
  • Legal stage – Conveyancers handle legal paperwork and transfer the new mortgage amount.
  • Completion – Your old mortgage is repaid and the new one completes. Takes 6-8 weeks.

An experienced broker guides you through the paperwork, lender communication and approvals required.

Refinancing Broker Fees and Costs

Understanding the costs associated with refinancing can help you make informed budget decisions. 

Broker fees can vary greatly depending on your specific circumstances and the details of your loan. While some brokers charge fixed fees, others may base their fees on the loan amount or a percentage of it.

The average broker fee in the UK is around £500, but this can range from £300 to £600, or between 0.3% to 1% of the loan size. 

It’s a practice in the industry to never charge more than 1% of the loan size. Most brokers offer initial consultations at no cost, and fees are typically collected only after they have successfully found you a suitable refinancing deal. If no appropriate deal is found, you should not be out of pocket.

Always confirm your mortgage broker’s fee in advance with a written quote. This step ensures that the service fee is clear and agreed upon before proceeding.

Tips for Maximising Savings When Refinancing

Follow these tips to ensure you maximise value when refinancing:

  • Improve your credit score before applying to increase chances of approval for better rates
  • Research multiple brokers and lenders to compare quotes
  • Borrow only what you need to minimise interest costs
  • Set a maximum budget for fees to reduce charges
  • Prepare paperwork like payslips and tax returns for a smoother application
  • Negotiate with lenders through your broker for improved interest rates or cashback
  • Clearly communicate your goals so your broker can prioritise suitable products

Doing your due diligence can help maximise the potential savings achieved by refinancing.

How to Choose the Right Mortgage Broker for Refinancing

If you’re considering refinancing your mortgage, take time to research potential brokers in your area. Look for online reviews, examine their qualifications, and check references from past clients. This helps assess their reputation and experience with refinancing.

It’s also wise to interview a few brokers before deciding. Ask them questions to gauge their familiarity with current refinancing products, rates, and lender criteria. 

An ideal broker will listen closely to understand your financial goals. They’ll explain refinancing options clearly without overcomplicating things.

Look for a broker well-connected in the industry. Strong relationships with lenders can help them access exclusive deals and negotiate effectively on your behalf. 

Feel confident they have the skills to smoothly guide you through documentation, underwriting, and closing.

A broker who instils trust and provides tailored advice based on your situation can make refinancing a breeze. Partner with one who eases the process while securing your optimal deal.

The Bottom Line

  • A mortgage broker unlocks exclusive deals and favourable rates, often not available when you apply directly to lenders.
  • With their market expertise, brokers swiftly find and recommend mortgage products that align with your financial situation.
  • Brokers save you time and stress by managing complex paperwork and effectively navigating the application process.
  • They provide personalised advice and can tap into niche lenders if your borrowing needs are unique.
  • Through their established relationships with lenders, brokers advocate for your best interests, often securing terms that could save you money in the long run.

For an effortless search for the perfect broker, simply reach out to us. After we’ve got your inquiry, we’ll set up a free chat with no strings attached, connecting you with a broker who’s a great fit for what you need.