When should I remortgage?

The best time to remortgage is 3–6 months before your current fixed rate deal expires. This gives you time to compare deals, apply, and complete the new mortgage before your old deal ends — avoiding the lender's Standard Variable Rate (SVR), which is almost always significantly higher than competitive deals. Most lenders allow you to lock in a new rate up to 6 months in advance.

How much does remortgaging cost?

Remortgaging costs typically include: an arrangement fee on the new mortgage (£0–£2,000, often added to the loan), a valuation fee (often free for remortgages), and solicitor/legal fees (often covered by the new lender as an incentive). If remortgaging within an existing deal's early repayment charge period, the ERC (typically 1–5% of the outstanding balance) is the biggest cost and may outweigh the benefit of switching early. Always calculate the total cost before remortgaging.

What is a product transfer vs a remortgage?

A product transfer means switching to a new deal with your existing lender — faster, cheaper, and requires no new credit check or solicitor. A full remortgage means switching to a completely different lender — slower, involves legal work, but often accesses better rates. Product transfers suit borrowers whose circumstances have changed or who want simplicity. Full remortgages suit those who want whole-market access to the best available rates.

Can I remortgage with bad credit?

Yes, but with fewer options. If your credit has deteriorated since your original mortgage, some lenders may decline or offer higher rates. A product transfer with your existing lender is often the easiest route as they already know your payment history. A specialist broker who works with adverse credit lenders can identify options. Improving your credit before the next remortgage date is worth doing early.

Can I remortgage to release equity?

Yes — equity release through remortgaging means borrowing more than your outstanding mortgage balance and receiving the difference as cash. This increases your loan size and monthly payments. Common reasons include home improvements, debt consolidation, or funding other purchases. The additional borrowing must pass the lender's affordability assessment. Equity release should be considered carefully — you are increasing your secured debt and the interest compounds over the remaining mortgage term.

Remortgaging -

What Is Remortgaging?

Remortgaging means switching your mortgage to a new deal — either with your existing lender (called a product transfer) or with a completely different lender. You are not moving house. You are simply replacing your current mortgage with a better one.

The most common reason to remortgage is that your current fixed rate deal is about to expire. When it does, your mortgage automatically reverts to the lender's Standard Variable Rate (SVR) — which is almost always 2–3% higher than competitive deals. On a £200,000 mortgage, that can mean paying £3,000–£5,000 extra per year. Remortgaging before the SVR kicks in is one of the most valuable financial actions a homeowner can take.

The average UK homeowner who fails to remortgage when their deal expires and falls onto their lender's SVR overpays by £2,000–£5,000 per year. At current SVR rates (~7.74%) versus best available deals (~4.84%), a £200,000 mortgage costs approximately £290/month more on SVR. Remortgaging 3–6 months before your deal expires is the single most important annual mortgage action.

⚠️ The SVR Trap — Most Expensive Mistake in Mortgages

Average UK SVR in January 2025: ~7.74%. Best available 2-year fix: ~4.84%. On a £200,000 mortgage over 25 years — staying on SVR costs approximately £290/month more than the best available deal. Over a year: £3,480 wasted. Set a calendar reminder for 6 months before your deal expires. Do not miss this.

When Should You Remortgage?

✅ Remortgage Now If...

Your Deal Expires in 3–6 Months

Start comparing deals and apply now. Most lenders allow you to lock in a rate up to 6 months in advance. This ensures you move seamlessly to a new deal without a single day on the SVR.

✅ Remortgage Now If...

You're Already on the SVR

Every month on SVR is money wasted. You can switch anytime — no ERC applies after your deal has expired. Start comparing immediately. The new deal can begin within a few weeks.

✅ Consider Remortgaging If...

Your LTV Has Improved Significantly

If your property has increased in value or you've paid down significant capital, you may now qualify for a lower LTV band — unlocking meaningfully better rates, even if your deal hasn't expired. Check if the rate saving outweighs any ERC.

✅ Consider Remortgaging If...

You Need to Release Equity

Borrowing more against your property for home improvements, debt consolidation, or other purposes is done through remortgaging. The additional amount is assessed through normal affordability criteria.

❌ Don't Remortgage If...

You're in a Fixed Period with a High ERC

Early Repayment Charges (ERCs) of 3–5% of the loan balance can easily exceed any rate saving from switching early. Always calculate the total ERC cost against the monthly saving before switching mid-deal.

❌ Consider Carefully If...

You Plan to Sell Within 12 Months

If you're selling soon, a new 2-year fixed deal may have ERCs that apply when you sell. A tracker with no ERCs, or a product transfer with portable terms, may be more appropriate. Portability allows taking the mortgage to a new property.

Product Transfer vs Full Remortgage — Which Is Right for You?

When it's time to switch deals, you have two routes. Understanding the difference helps you make the right choice.

🔄 Product Transfer (Same Lender)

✓No solicitor or legal work required

✓No new credit check (usually)

✓Can complete in days rather than weeks

✓No valuation fee

✓Good if circumstances have changed

~Limited to your lender's products only

~Rates may not be market-leading

Best for: Speed, simplicity, changed circumstances (income drop, credit issues)

🏛️ Full Remortgage (New Lender)

✓Access whole market — find the best rate

✓Legal fees often covered by new lender

✓Valuation often free for remortgages

✓Can borrow more / change term

~Takes 4–8 weeks (solicitor required)

~New affordability assessment required

~New credit check (hard search)

Best for: Maximising rate savings, equity release, changing term or repayment type

💡 Always Compare Both Options

Don't automatically accept your existing lender's product transfer rate. Use a broker to compare the whole market first. Even if your existing lender's rate is competitive, knowing you've checked means you're making an informed decision. A broker can often negotiate a better rate with your existing lender by demonstrating they have a competitive offer from another lender ready to go.

How Much Could You Save by Remortgaging?

Use the calculator below to see your potential monthly and annual savings from remortgaging to a better rate.

💰 Remortgage Savings Calculator

See how much switching could save you.

Outstanding Mortgage (£)

Remaining Term (years)

Current Rate (%)

New Deal Rate (%)

📊 Your Remortgage Savings

Enter details and
click Calculate
to see your savings

The Remortgage Process — Step by Step

Check When Your Current Deal Expires

Find your mortgage statement or original offer letter. Note the exact end date of your initial rate period. Set a reminder for 6 months before this date — that is when to start the remortgage process.

Check Your Current LTV

Get an estimate of your current property value (use Rightmove's sold prices, Zoopla estimate, or a local agent's free valuation). Calculate: (outstanding mortgage ÷ property value) × 100. A lower LTV than when you originally borrowed means you may access better rates.

Compare Deals via a Whole-of-Market Broker

A broker compares your existing lender's product transfer offers against the whole market. They know which lenders will accept your current LTV and circumstances. Most remortgage brokers offer this service free (paid by lender) or for a modest fee.

Apply and Lock In Your Rate

Most lenders allow you to lock in a new rate up to 6 months in advance. The rate is reserved — if rates rise before your completion, you keep the locked rate. If rates fall, many lenders allow you to switch to a lower rate before completion (check terms).

Submit Documents and Wait for Offer

Provide updated documents (3 months' payslips, bank statements). For a product transfer, this is often minimal or not required. For a full remortgage, the new lender does a valuation and issues a formal offer — typically 2–4 weeks.

Solicitor Completes the Switch (Full Remortgage Only)

For a new lender remortgage, your solicitor (often provided free by the new lender) handles the legal transfer of the mortgage charge. This takes 2–4 weeks and coincides with the end of your existing deal.

Remortgage Costs — What to Budget For

Cost	Typical Amount	Notes
Arrangement fee	£0–£2,000	Can be added to mortgage — increases loan size slightly.
Valuation fee	Often free	Most lenders offer free valuations for remortgages.
Legal/solicitor fees	Often free	Many lenders cover legal costs as an incentive to switch.
Exit fee (existing lender)	£0–£300	Sometimes called a deeds release or mortgage exit fee.
Early Repayment Charge	1–5% of loan	Only if switching within your existing deal's fixed period.
Broker fee	£0–£600	Or free if broker takes lender commission. Transparent brokers charge a fee.
Total (deal expired)	~£0–£800	Most free when remortgaging after deal expiry with a free legal/valuation lender.

Frequently Asked Questions

Yes, but your options may be more limited. If your property's value has fallen, your LTV may now be higher than when you originally borrowed — potentially moving you into a higher rate band or limiting available lenders. In extreme cases of negative equity (mortgage exceeds property value), full remortgaging to a new lender becomes very difficult. A product transfer with your existing lender is often the only option. Speaking to a broker will clarify which products you qualify for based on the current valuation.

Equity release through remortgaging means borrowing more than your outstanding mortgage balance. The difference is paid to you as cash. Example: your outstanding mortgage is £150,000, your property is worth £300,000. You remortgage for £180,000 — the new lender pays off your old £150,000 mortgage and gives you £30,000 in cash. The additional £30,000 is added to your mortgage debt and interest accrues on the full £180,000. The new lender assesses your affordability on the full £180,000 loan. Common reasons: home improvements, debt consolidation, helping family members, funding other investments.

It depends on your loan size. A 0.5% rate improvement on a £100,000 mortgage saves approximately £42/month (£504/year). On a £300,000 mortgage, the same improvement saves approximately £125/month (£1,500/year). Compare the annual saving against total remortgage costs (arrangement fee, legal fees, broker fee). If costs are £1,000 and the annual saving is £500, it breaks even in two years — reasonable if staying in the property. If costs are covered by the new lender (free legals, no arrangement fee), any rate improvement is worth switching for.

Yes — remortgaging is an opportunity to extend or reduce your remaining term. Extending the term (e.g. from 15 remaining years to 20) reduces your monthly payment but increases total interest paid significantly. Reducing the term increases your monthly payment but clears the mortgage faster and saves substantial interest. Any term change must pass the new lender's affordability assessment. Extending the term has become popular as rates have risen — it brings monthly payments down to manageable levels while accepting higher total cost. A broker or financial adviser can model the total cost of different term options.

Important: Mortgage rates and products change daily. Early Repayment Charges vary significantly by lender and deal. This article is educational — not FCA-regulated mortgage advice. Always consult a qualified mortgage adviser before remortgaging. Read our Disclaimer.

Remortgaging Explained:
When & How to Switch
UK Guide 2025