When to Remortgage

Whether you want to cut your monthly payments, borrow more money or your personal circumstances have changed, there are many reasons you may be considering remortgaging your home.

What is a Cash ISA?

Just like a savings account, a Cash ISA (Individual Savings Account) is a safe, secure way to store your money. The only difference is that any interest you earn on your savings is tax-free.

What are the benefits of an ISA?

There are many reasons to opt for a Cash ISA over alternative savings accounts. Not the least of these, is that they’re a great way of saving for your future. Other benefits include:

  • Currently, all basic rate taxpayers can earn £1,000 of tax-free savings interest per year, under the Personal Savings Allowance (PSA). However, there is no guarantee that this won’t change in the future. With ISAs, you’re guaranteed your savings will always be tax-free. Investing your allowance each year means you can grow your savings without having to pay any tax.
  • If you were to opt for an alternative regular savers account and savings interest rates increased, the money you’d saved may tip you over the Personal Savings Allowance limit.
  • Some types of Cash ISA come with the added benefit of government boosting. For example, the 25% government bonuses offered with Help to Buy ISAs and Lifetime ISAs. 

Are ISAs tax-free?

Yes, with a Cash ISA you can rest assured your savings are not only tax-free, but safe from changing regulations.

The only time when a Cash ISA isn’t exempt from tax is if you are aged 16 or 17 years old, and the money in your account is a gift from a parent. If this is the case, your parents may have to pay tax if parental settlement rules apply.

Cash ISA rules

  • To be eligible for a Cash ISA, you must be aged 16 or over and a UK resident. The only exception to this is in the case of Lifetime ISAs, that require you to be 18 years old
  • You can only open one Cash ISA per year
  • You have a single ISA allowance each year, which you can divide between a Cash ISA, a stocks and shares ISA, an Innovative Finance ISA and/or a Lifetime ISA. With a Lifetime ISA, the maximum allowance is £4,000 each year, meaning you have up to £16,000 to split between the other types

How much can I put in an ISA?

The total amount you can put into a Cash ISA for the 18/19 tax year is £20,000. This is known as the ISA allowance and is available to every person over 16 in the UK. You have the choice of using up the maximum allowance in one account, or splitting between the different types of ISA products.

Any interest your ISA earns doesn’t count towards your Personal Savings Allowance.

When is the ISA deadline?

The ISA deadline is midnight on 5th April each year; this is the end of the tax year. Any unused allowance doesn’t roll over into the new tax year, so you should try to make the most of your allowance before the deadline comes around. For more information on the ISA deadline, refer to our ISA deadline guide.

What are the different types of Cash ISA?

There are a number of different Cash ISAs available to help you achieve your savings goals. Whether you’re saving for your first home or setting up a nest egg for your golden years, there’s an option to suit you.

Fixed Rate ISAs

A Fixed Rate ISA pays a guaranteed amount of interest for a set period of time, from six months to five years. Though withdrawals are permitted, they’re subject to penalties. Consequently, a Fixed Rate ISA is better suited to those who won’t need immediate access to their savings.

Help to Buy ISAs

A Help to Buy ISA is a government scheme designed to help you save for a mortgage deposit on your first home. To qualify, you can’t own a property anywhere in the world.

You can save up to £200 a month in a Help to Buy ISA, and they come with the added bonus of government contributions. In this case, your savings could be boosted by 25%. The minimum government bonus is £400, so you will have to have saved at least £1,600 to qualify for a government bonus.Please note, Help to Buy ISAs are due to be withdrawn in November 2019.

Lifetime ISAs

A Lifetime ISA is a tax-free savings account that also offers a government bonus of 25% on top of the money you put in, up to a maximum of £1,000 a year. With a Lifetime ISA, you can deposit as much as £4,000 per year until the age of 50. Lifetime ISAs can only be opened and funded by those aged 18 to 39.

Junior ISAs

Junior ISAs are tax-efficient ways of saving for your little one’s future. You must be 16 or over and a UK resident to open a Junior ISA on behalf of a child, or be a child aged 16 to 18 to open one for yourself. The Junior ISA allowance for 2019/20 is £4,368.

Find everything you need to know about Junior ISAs here.

Refer to our Cash ISA page to discover the full range of ISAs available with Newcastle Building Society.

How many ISAs can I have?

You can have multiple ISAs at one time, but you can only open or pay into one of each type of ISA using your £20,000 allowance. 

Though you can only open one Cash ISA each tax year, there’s no limit to the number of ISA transfers you can make, should you spot a better interest rate with another provider. However, with Newcastle Building Society, you can open multiple cash ISAs using our CustomISA service. You can find more about that here.

What happens if I take money out of my ISA?

Withdrawals are permitted from most ISAs. However, if you make a withdrawal from a Fixed Rate ISA, you will be subject to a penalty in the form of a loss of interest on your savings.

If you think you will need access to your savings quickly, then you may be best suited to an ISA that doesn’t penalise withdrawals.

In relation to the Lifetime ISA a penalty of 25% of the withdrawal amount will be deducted unless the funds are being used for either:

  • Buying your first house (the account must have been held for a minimum 12 months)
  • You reach the age of 60
  • You are diagnosed with a terminal illness and have less than 12 months to live

Can I transfer my ISA to another provider?

You are permitted to unlimited transfers each tax year. However, you should always check that your new provider accepts transfers, as not all banks and building societies are obliged to do so

Avoid withdrawing money from your ISA yourself, as your savings may lose their tax-free status!

There are a number of reasons you may want to transfer to a new provider. For example, if you’ve spotted better rates elsewhere. Read our complete guide to the ISA transfer process for more information.

Can I inherit an ISA?

If your spouse or civil partner passes away, you will be eligible to receive an Inheritance ISA Allowance. Read more information about inheritance tax allowance in our helpful inheritance tax allowance guide.

Applying for a Cash ISA with Newcastle Building Society

If you'd like to apply for a Cash ISA at Newcastle Building Society, the process is really simple. We also accept ISA transfers, including Lifetime ISAs. To get the ball rolling, simply browse our Cash ISA product range or contact us.​

Our remortgage guide covers every aspect of remortgaging: from how much you can remortgage your house for to what to do when your remortgage application is rejected.

What is a remortgage

A remortgage is the process of switching your existing mortgage on your home to a different scheme, either with your current lender or a new lender. In simple terms, the new mortgage is used to pay off the existing mortgage, using the same property as security against the loan.

When to remortgage

In many cases, a remortgage is simply about changing to a mortgage that is more suitable for your current circumstances. But, how do you know when it’s the right time to remortgage your home?

There is no hard and fast rule when it comes to remortgaging, as the decision will always depend on lots of different factors. However, it’s especially worth thinking about remortgaging if you’re nearing the end of a fixed deal or if you’re on your lender’s standard variable rate as your lender’s standard variable rate is likely to be higher than other interest rates.

Other reasons you may want to consider remortgaging your home:

  • You want to borrow more

If your current lender has said no to lending you extra money, remortgaging to a new lender might allow you to raise money, perhaps even on a lower rate than your current deal.

  • You want to overpay and your current lender won’t let you

If your financial situation has changed and you want to pay extra on your monthly repayments, but your existing deal won’t let you, a remortgage will allow you to reduce the loan size and potentially get a cheaper rate as a result.

  • Your home’s value has increased by a significant amount

If the value of your property has increased rapidly, you may find you’re in a lower loan-to-value band and eligible for lower rates.

  • You want to switch from repayment to interest-only

In most cases, making the switch shouldn’t require remortgaging, your lender should be able to make the change for you. However, if you want to change from capital repayment to interest only this can be difficult.

Alternatively, there are many circumstances where remortgaging your home may not be the best option. For example, if your mortgage debt is small, you have little equity or you’ve had credit problems since taking out your last mortgage.

If you’re unsure whether to remortgage your home or not, why not pop into your nearest Newcastle Building Society branch to speak with a member of our team?

Tips for remortgaging

Some important considerations to make ahead of remortgaging your home are:

  • Understand what you want from your new mortgage deal
  • Ensure you have sufficient equity in your home
  • Find out how much you owe your current lender
  • Check the terms and conditions of your current mortgage to find out whether there is an early repayment charge
  • Make sure your budget accommodates for legal, valuation and administration costs
  • Check if your current provider can offer you the mortgage you require as there may be cost benefits in staying with your current provider instead of moving.

How much can I remortgage my house for?

You can get a rough idea of how much you can borrow using our mortgage affordability calculator. However, this should only be regarded as an estimate.

What to do when remortgage application is rejected

When you choose to remortgage your home, your lender will assess your application using set affordability criteria, including a full credit check. There may be other eligibility requirements depending in the type of mortgage applied for.

The purpose of this process is for the lender to determine how likely you are to meet repayments.

Occasionally, lenders can reject mortgage applications. This may be because you have missed payments or made late payments recently, you have made too many credit applications, you’re not registered to vote on the electoral role, the lender has calculated you won’t be able to make repayments based on your affordability assessment, or a number of other reasons.

If you have been declined a remortgage, you will be informed by your lender as to why. At this point, you should address the reasons why you were refused.

Should I pay off my mortgage early?

If you're remortgaging with a desire to pay off your mortgage early in mind, you may want to view our should I pay off my mortgage early guide as the answer to that quesiton may not be as straightforward as you think.


Do i need a deposit to remortgage?

No, you do not need a deposit to remortgage however you must have sufficient equity in your home. 

Equity is the percentage of your home you already own.

How much does it cost to remortgage?

There are a number of fees and charges you may need to budget for depending on the type of mortgage you take and your personal situation. The types of fees include; 

  • Valuation fee
  • Reservation fee
  • Arrangement / completion fee
  • Legal fees

You should also check the terms and conditions of your current mortgage to find out whether there is an early repayment charge or / as well as an exit fee.

Before making a final decision, obtain a full mortgage redemption cost from your current lender and carefully check your new mortgage illustration, which will include the details of any costs involved.

Do you need a solicitor when remortgaging?

If you are switching lenders, you will require a solicitor or conveyancer to help with the legal side of things. Moving to a new rate or deal with your current lender is known as a product transfer and doesn’t require additional legal work.

If you choose to remortgage with Newcastle Building Society, you can benefit from our solicitor services. With us, you can enjoy no standard legal costs. Read our conveyancing services page to find out more.

What documents do I need to remortgage?

If you are remortgaging with a new lender, the documents you need to provide will be similar to when you applied for your first mortgage.

You will usually need to provide the following paperwork:

  • Details of the property
  • Details of your bank account
  • Proof of identity, such as a passport or driving licence
  • Proof of address, such as a council tax or utility bill
  • Proof of employment
  • Proof of your financial situation
  • Proof of your income, such as pay slips, P60, or your accounts if you are self-employed
  • Proof of your outgoings, such as bank statements, and including debts and loans
  • Proof of your assets, such as investments, other properties, or accounts

If you’re still unsure about the buying and selling process, why not pop into a Newcastle Building Society branch today?

Whether you’re a new customer or an existing customer, our qualified team of mortgage advisors are always on hand to help and answer any questions you may have. Book an appointment in branch today.

Your mortgage will be secured on your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

Thinking about remortgaging?

You can speak to one of our friendly mortgage advisers by calling


8am - 8pm Monday to Friday 9am - 3pm Saturday (Calls to 0345 numbers, cost the same as a call to a standard ‘01’ or ‘02’ landline number, even when calling from a mobile.)