In this guide
What Is Remortgaging?
Remortgaging means switching your current mortgage to a new deal — either with your existing lender or a different one. The property doesn't change. You're simply replacing the loan that's secured against it.
Most people remortgage to get a better interest rate when their current deal ends. If you do nothing, you'll be moved onto your lender's Standard Variable Rate (SVR), which right now averages close to 8%. That's nearly double what you'd pay on a decent fixed deal.
On a £250,000 mortgage, the difference between a 4.5% fixed rate and an 8% SVR is roughly £500 per month. That's why remortgaging before your deal ends is so important.
When Should You Remortgage?
There are several good reasons to look at remortgaging:
- Your fixed rate is ending. This is the biggest trigger. Start looking 6 months before your deal expires to avoid slipping onto the SVR.
- Your property has gone up in value. If your home is now worth more, your loan-to-value (LTV) ratio will have dropped. Crossing key thresholds — 90%, 85%, 80%, 75% — unlocks better rates.
- You want to release equity. Remortgaging lets you borrow against the value you've built up, for things like home improvements or other large expenses.
- Better deals are available. Even if your deal hasn't ended, it can be worth switching if the savings outweigh any early repayment charges.
- Your circumstances have changed. Divorce, a change in income, or wanting to consolidate debts can all be reasons to restructure your mortgage.
Most lenders let you lock in a new rate up to 6 months before your current deal ends. The offer is usually valid for 3–6 months, so you're protected if rates rise — and you won't pay early repayment charges if you time completion for when your deal actually expires.
How the Remortgage Process Works
The whole process typically takes 4–8 weeks from application to completion. Here's what happens:
- Review your current deal Check your remaining balance, current rate, when your deal ends, and whether there are any early repayment charges.
- Compare the market Look at what's available across different lenders. A broker can search deals you can't access directly and compare them against your existing lender's offers.
- Apply to the new lender Submit your application with proof of income, bank statements, and details of your current mortgage. The lender runs a credit check and arranges a valuation of your property.
- Receive your mortgage offer Once approved, the lender issues a formal offer. This is usually valid for 3–6 months.
- Legal work A solicitor handles the transfer — signing the new mortgage deed and registering the new charge with the Land Registry. This usually takes 2–4 weeks.
- Completion Your new mortgage pays off the old one. Your new deal begins.
We handle the whole process for you — from searching the market to chasing the solicitors.
What Does Remortgaging Cost?
These are the fees you might come across. Many are avoidable with the right deal.
| Fee | Typical Cost | Notes |
|---|---|---|
| Arrangement fee | £0 – £1,500 | Charged by the new lender. Can usually be added to the loan. |
| Valuation fee | £0 – £1,500 | Often free on remortgage deals. |
| Legal fees | £300 – £1,000 | Many lenders include free legal work as an incentive. |
| Early repayment charge | 1% – 5% of balance | Only applies if you leave your deal early. Avoidable with timing. |
| Exit fee | £50 – £300 | Charged by your current lender to close the old mortgage. |
Many remortgage deals include free valuation and free legal work, so the main cost to watch is the arrangement fee and any early repayment charge.
Product Transfer vs Remortgage
When your deal ends, you actually have two options: switch to a new deal with your current lender (a product transfer) or move to a different lender entirely (a remortgage). Here's how they compare:
- Stay with your current lender
- Can complete in days
- Minimal paperwork
- Usually no valuation or legal fees
- Limited to one lender's products
- Can't usually release equity
- Move to a new lender
- Takes 4–8 weeks
- Full application and credit check
- Valuation and legal work required
- Access to 90+ lenders
- Can release equity
A product transfer is quicker and simpler, but a full remortgage across the market will often deliver a better rate and greater long-term savings. The right choice depends on your situation.
If your income has changed, you've recently become self-employed, or your credit score has taken a hit — a product transfer skips the affordability checks that a new lender would require. It's often the safer option in those situations.
When Not to Remortgage
Remortgaging isn't always the right move. Think twice if:
- Early repayment charges would wipe out savings. ERCs of 2–5% of your balance can amount to thousands. Always do the maths first.
- Your remaining balance is small. If you owe less than around £50,000, the fees involved may outweigh any interest savings.
- Your property has dropped in value. If your LTV has gone up rather than down, you may not get a better rate than what you're already on.
- You're close to paying off your mortgage. With only a few years left, the costs and hassle may not be worthwhile.
If in doubt, speak to a broker. We'll run the numbers for you and tell you honestly whether it's worth switching.
Not Sure What to Do Next?
Whether you're 6 months away from your deal ending or you've already landed on the SVR, we can help. We'll compare 90+ lenders against your current lender's product transfer options and tell you exactly which route saves you the most money.
