For many homeowners, a mortgage review can feel like a routine product renewal. In reality, it can be an opportunity to reassess wider financial goals, explore new options, and ensure a mortgage continues to support changes in your circumstances.
This was particularly relevant for one of our mortgage clients; a couple who had purchased their first home five years ago with support from our mortgage team and were now approaching the end of their five-year fixed-rate deal.
Since taking out their first mortgage, their circumstances had evolved. Their family had grown, household outgoings had increased, and they were considering borrowing additional funds against their property to fund home improvements.
Alongside concerns around higher mortgage rates and uncertainty around the remortgaging process, the clients wanted guidance on whether staying with their existing lender or moving elsewhere would be the most suitable route forward.
They were in need of clear advice, a practical strategy, and reassurance that their mortgage arrangements remained aligned with both their immediate needs and long-term goals.
The situation
Establishing the clients’ circumstances
Mortgage and Protection Adviser, Beth Martin, explained that the clients were first-time buyers when they purchased their home in 2021 and had taken out a five-year fixed-rate mortgage.
Since then, their circumstances have changed significantly:
“When we first arranged their mortgage, their circumstances were very different. Only one of the individuals was working full time and they had a young child. Five years on, both individuals have moved into new full-time roles and have grown their family further, which has naturally led to increased household outgoings.”
Although both clients were now earning higher salaries, they were also managing significantly higher childcare costs of £1,000 per month. They also wanted to access additional funds through releasing equity, which led them to question how this may affect their options.
“The clients were looking to release £20,000 in equity from their property to fund home improvements but were unsure how the process worked and whether it may impact their available rates. This was a particular concern for the clients given their increased childcare costs and having secured a lower rate on their current product.”
As this was their first remortgage, the clients were also unfamiliar with the remortgaging process itself.
“They had questions that many of my clients have at this stage, such as what happens when a fixed-rate ends, whether they should switch lenders, and how the additional borrowing could affect their affordability and rates. At this stage, I took the time to explain how the remortgaging process works and what releasing equity involves, to help the clients feel informed and give them clarity.
The priority is always to help the clients understand what is happening and why, as well as establishing my clients’ needs to ensure the products I recommend are aligned with their current circumstances and long-term goals.”
Reviewing the mortgage early
Why proactive contact mattered
The clients’ current fixed-term product was due to end in July. However, rather than waiting until July to approach the clients, Beth contacted them several months in advance as part of our proactive mortgage review process.
“We contact clients between four to six months before their current product ends so there is time to review their options thoroughly and put everything in place well ahead of time. This prevents the clients from being automatically transferred onto their lender’s Standard Variable Rate (SVR), which is often higher than normal rates, and ensures a new product is set up and ready to kick in from the day after their existing term ends.
In this case, reviewing the clients’ situation early created time for me to assess both their remortgaging options as well as the potential for additional borrowing, without the pressure of an approaching term end date.”
It also allowed wider factors to be considered, including:
- Changes in their household income.
- Increased outgoings due to childcare costs.
- Whether remaining with their current lender or switching to a new one would be most suitable.
- How releasing equity may affect their borrowing options.
This moved the conversation beyond simply renewing a mortgage product and towards a broader review of the client’s circumstances and what they needed as a family.
Assessing the options
Understanding the impact of additional borrowing
“A key part of the review involved assessing how releasing £20,000 of equity from the clients’ property may affect their mortgage options. This was because rates are often linked to Loan-to-Value (LTV) bands and the additional borrowing may have moved the clients into a different pricing bracket, potentially leading to less competitive rates.”
The client’s existing mortgage balance placed them in a stronger LTV position than when they first purchased their property due to their equity increasing over time as they made repayments.
However, adding the released £20,000 to a new single mortgage product with a new lender would have moved the clients’ entire borrowing into a higher LTV bracket (e.g. 95%), which would have increased costs across the whole mortgage balance rather than just the additional borrowing.
Comparing remortgaging to a product transfer
To help the clients make an informed decision and secure a product that aligned with their personal circumstances, two options were explored: switching to a new lender through a full remortgage or remaining with their existing lender through a product transfer combined with separate additional borrowing.
“After exploring the options available to the clients, I was able to offer them the option of remaining with their current lender who would allow the product transfer and additional borrowing to be arranged as two separate transactions.
This created an opportunity to structure things in a more cost effective and efficient way, meaning that one would not negatively affect the pricing of the other.”
The solution
Structuring two products instead of one
“After reviewing my clients’ financial situation, needs, and goals for their property, I recommended that the clients remain with their existing lender and that two separate products should be arranged.
The clients agreed with the recommendation which led to the first product being a product transfer for their existing mortgage balance. This involved switching their current mortgage deal to a new one with their existing lender, rather than moving to a new provider.
The second was a separate product for the £20,000 additional borrowing, which meant the higher rate associated with the additional borrowing applied only to the £20,000, rather than the client’s full outstanding mortgage balance.
If we had moved the whole borrowing to a new lender, the increased LTV would have likely affected the rate on the entire mortgage, but by separating the borrowing into two products we avoided that.”
This approach reduced the client’s projected repayments by around £100 per month and saved the clients from several potentially expensive upfront costs, such as legal fees.
Releasing equity without unnecessary costs
An additional benefit of the clients remaining with their current lender was efficiency.
Although affordability checks, credit checks and a property valuation were still required, the clients avoided a full legal process and associated conveyancing costs.
“There was still underwriting involved, but it was a simpler route than a full remortgage and avoided unnecessary legal fees and potential delays.
The additional borrowing was also processed and sent to the clients in around two weeks as they remained with their current lender. This meant the clients could begin their house renovations sooner whilst having the peace of mind that their new product was set up and ready to automatically kick in when their term ends in July.”
This gave the clients access to the funds they needed sooner while keeping their wider mortgage strategy intact.
Supporting wider affordability decisions
Looking beyond the rate
While securing a cost-effective structure was important, the conversation also considered affordability more broadly.
“Although the recommended option reduced costs compared to switching lenders, the clients’ repayments were still increasing compared to their previous deal. This was due to both higher rates as a result of the current geopolitical uncertainty and their additional borrowing.”
This led to a discussion around whether extending the clients mortgage term may be worth considering, Beth explained:
“We discussed the option of extending their mortgage term as a way to reduce their monthly repayments. I explained that while this can help with short-term affordability, it can also mean paying more interest overall, as the cost is spread over a longer period. It was therefore important that any decision reflected their wider priorities and not just the monthly figures.
After considering this, the clients decided to keep their mortgage term unchanged. They expected their childcare costs to reduce in the near future and felt comfortable managing the higher repayments over the summer, so avoiding additional interest over the longer term was the right option for them.”
This formed part of a broader advice-led conversation around:
- Monthly affordability.
- Future household expenditure.
- Borrowing flexibility.
- Balancing higher repayments against long-term cost.
Ongoing support and monitoring
Continuing to review rates
Although the product transfer was arranged months in advance, monitoring did not stop there.
Beth explained:
“We continue to monitor rates right up to completion and, where possible, move our clients onto a better rate should one become available to them.”
This ongoing support forms part of the wider service offered to our clients, ensuring our guidance continues beyond the point an application is submitted.
Maintaining long-term advice
The clients were reassured that advice continues even after their mortgage was completed and their new product begins, including:
- Ongoing access to mortgage advice throughout the fixed term.
- Flexibility to review further borrowing if needed and available.
- A proactive review ahead of their next remortgage in 2028.
- Continued rate monitoring up until two weeks before the product is completed.
“As advisers, our role is not just arranging a mortgage at a single point in time. It is about helping clients review decisions as their circumstances evolve and providing support when they need it most.”
The outcome
A practical solution tailored to the clients
Through practical advice and taking the time to fully understand the clients’ needs and changes in circumstances, Beth was able to:
- Secure the clients a new two-year fixed-rate product for their existing mortgage.
- Successfully release £20,000 in equity for the clients’ home improvements.
- Implement a structure that saved the clients around £100 per month, despite rate increases.
- Provide quick access to funds without full remortgage legal costs.
- Provide ongoing monitoring and support before and after completion.
Just as importantly, the clients gained clarity, confidence, and reassurance that their mortgage arrangements continued to support both their current needs and long-term goals.
Final reflection
This case demonstrates that remortgaging can be about far more than just securing a new rate.
With the right advice, it can be an opportunity to reassess wider goals, structure borrowing more effectively and make informed decisions that support both your current needs and long-term objectives.
In this case, early management, product knowledge and a tailored recommendation helped the clients release equity, manage increasing rates and secure a more cost-effective outcome compared to remortgaging with a new lender.
It also highlights the value of proactive, ongoing advice, not only at the point of a product ending but throughout a client’s wider homeownership journey.
