The Short-Term Impact on Your Credit Score
When you apply to remortgage, the lender will carry out a hard credit search. This leaves a visible footprint on your credit file and can cause a small, temporary dip in your score — usually around five to ten points. The impact is minor and typically recovers within a few months.
If you're shopping around and multiple lenders run hard searches in a short period, the effect can be more noticeable. This is why it's sensible to use an agreement in principle (which usually involves a soft search) before making full applications.
Soft Searches vs Hard Searches When Remortgaging
Many lenders now offer a soft credit check at the agreement in principle stage. Soft searches are only visible to you on your credit report and don't affect your score. This allows you to check your eligibility with multiple lenders without leaving multiple footprints.
The hard search typically happens when you submit a full mortgage application. At this point, the footprint will be visible to other lenders. Keeping your full applications targeted — ideally to one or two well-chosen lenders — helps minimise the impact.
Long-Term Effects of Remortgaging on Your Credit File
Once your remortgage completes, the new mortgage appears on your credit file. Your old mortgage account will be marked as settled and the new one will show as open. This is a routine change and doesn't negatively affect your score.
In fact, remortgaging can have a positive long-term effect. If you move to a lower rate and your monthly payments are more manageable, you're less likely to miss payments. If you remortgage to a shorter term or make overpayments, reducing your outstanding debt can gradually improve your score.
How to Minimise the Credit Score Impact
To keep the impact of remortgaging on your credit score to a minimum:
- Use soft-search eligibility checkers before applying formally
- Limit the number of full applications you make
- Work with a mortgage broker who can target the most suitable lender for your profile
- Avoid other credit applications in the weeks before and after your remortgage application
Remember that any temporary dip from the application process is far outweighed by the potential savings from securing a better mortgage rate.
Important: Your home may be repossessed if you do not keep up repayments on your mortgage. There will be a fee for mortgage advice. The actual rate available will depend on your circumstances. Think carefully before securing other debts against your home.