Remortgaging means switching your existing mortgage to a new deal, either with your current lender or a different one. Most homeowners in the UK remortgage when their initial deal period ends to avoid higher interest rates, but it can also be a way to release equity, reduce monthly payments, or consolidate debt. Knowing when and how to remortgage can save you thousands of pounds over the life of your loan.

This guide explains the remortgage process step by step, when it makes financial sense to switch, and how to compare deals to find the best rate for your circumstances.

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

This article provides general educational information only. It is not regulated mortgage advice, personalised financial advice, or lending advice. Refisage is not authorised by the Financial Conduct Authority (FCA). You should consider speaking to an FCA-authorised mortgage adviser before making any decisions about remortgaging.

What You Will Learn

  • What remortgaging is and how it differs from a product transfer
  • When it is worth switching to a new mortgage deal
  • How to compare remortgage offers and calculate potential savings
  • The step-by-step process to remortgage your home in the UK
  • Common mistakes to avoid when remortgaging
  • Frequently asked questions about remortgaging

Understanding Remortgaging and When Your Deal Ends

Remortgaging is the process of replacing your existing mortgage with a new one. You can remortgage with your current lender (often called a product transfer or rate switch) or move to a different lender entirely.

Most UK mortgages have an initial deal period (typically two, three, five, or ten years) during which you pay a fixed, tracker, or discounted interest rate. When this period ends, you automatically revert to your lender’s standard variable rate (SVR). The SVR is almost always higher than the deal rate you were paying, sometimes by several percentage points.

According to the Financial Conduct Authority, borrowers on SVR rates can pay significantly more than those on competitive fixed or tracker deals. Remortgaging before you revert to the SVR can save you hundreds of pounds every month.

You can also remortgage during your deal period, but you will usually face an early repayment charge (ERC) if you leave before the initial term ends. The ERC is typically a percentage of the outstanding loan (for example, 3 per cent in the first year, 2 per cent in the second year, and so on). You should compare the cost of the ERC against the potential savings from a new deal to decide whether it is worth switching early.

When It Is Worth Remortgaging

Remortgaging makes sense in several situations:

Your deal period is ending. This is the most common reason. If your fixed, tracker, or discount period is about to expire, you should start comparing new deals at least three to six months before the end date. Most lenders allow you to apply up to six months in advance and lock in a rate, protecting you if rates rise in the meantime.

Interest rates have fallen. If the Bank of England base rate has dropped, or if lenders are offering more competitive deals than when you took out your mortgage, you may be able to secure a lower rate. Even a small reduction in your interest rate can lead to significant savings over the term of your mortgage (Bank of England, 2026).

Your loan-to-value (LTV) has improved. LTV is the percentage of your property value that you are borrowing. As you pay down your mortgage and your property value increases, your LTV falls. Lower LTV bands (for example, 60 per cent, 75 per cent, or 85 per cent) attract better interest rates. If your LTV has dropped into a lower band since you took out your mortgage, you may qualify for a cheaper deal.

You want to release equity. If your home has increased in value, you can remortgage for a larger amount and use the extra funds for home improvements, debt consolidation, or other purposes. Be aware that borrowing more increases your monthly payments and the total interest you pay over the life of the loan.

You are currently on the SVR. If you have already reverted to your lender’s SVR and have not remortgaged, you are almost certainly paying more than you need to. Switching to a new deal should be a priority.

You want to change your mortgage type. You might remortgage to switch from an interest-only mortgage to a repayment mortgage (capital and interest), or to move from a tracker to a fixed rate for more certainty over your monthly payments.

When remortgaging may not be worth it: if the costs (arrangement fees, valuation fees, legal fees, and any ERC) outweigh the savings you would make from a lower rate, or if your circumstances have changed (for example, reduced income or credit issues) and you can no longer access competitive rates.

How to Compare Remortgage Deals and Calculate Savings

Before you remortgage, compare the total cost of each deal over the initial period, not just the headline interest rate.

Look at the annual percentage rate of charge (APRC). The APRC includes the interest rate and most fees, giving you a better indication of the true cost of the mortgage over the full term. However, the APRC assumes you keep the mortgage for the entire term (often 25 or 30 years), which is unrealistic if you plan to remortgage again in two or five years.

Calculate the total cost over the deal period. Add up all the monthly payments during the initial deal period, plus any arrangement or product fees, valuation fees, and legal fees. Compare this total across different offers. A mortgage with a slightly higher interest rate but no fees may work out cheaper than one with a lower rate and high upfront costs.

Consider whether to add fees to the loan. Some lenders allow you to add arrangement fees to the mortgage balance rather than paying them upfront. This reduces the cash you need at the outset, but you will pay interest on the fee for the life of the loan, increasing the total cost.

Check the reversion rate. What happens when your deal period ends? If you do not remortgage again, you will revert to the lender’s SVR. Some lenders have lower SVRs than others, which can be useful if you end up on the reversion rate temporarily.

Use a remortgage calculator. Online remortgage calculators can help you estimate monthly payments and compare the total cost of different deals. MoneyHelper and other consumer websites offer free tools (MoneyHelper, 2026).

Factor in your loan-to-value. Check your current property value (you can use online valuation tools or get a professional valuation) and calculate your LTV. This determines which rate bands you can access. If you are close to a lower LTV threshold, paying down a bit more of your mortgage before remortgaging can unlock better rates.

Step-by-Step: How to Remortgage Your Home

Step 1: Check When Your Deal Ends and Whether You Have an ERC

Find out the end date of your current deal period. You can check your mortgage statement, log in to your lender’s online portal, or call them. Also confirm whether you will face an early repayment charge if you remortgage before the deal ends.

If your deal is ending soon and you have no ERC, you can proceed immediately. If you are still within your deal period, calculate whether the ERC cost is less than the savings you would make by switching to a lower rate. In most cases, it is best to wait until the ERC-free period (usually the last three to six months of your deal) before remortgaging.

Step 2: Review Your Financial Situation and Credit File

Lenders assess your affordability and creditworthiness when you remortgage. Check your credit file with the main UK credit reference agencies (Experian, Equifax, and TransUnion) to ensure there are no errors or unexpected marks. If your credit score has improved since you took out your mortgage, you may qualify for better rates.

Gather evidence of your income (payslips, tax returns if self-employed, bank statements) and review your regular outgoings. Lenders will ask about your income, employment, and monthly commitments to ensure you can afford the new mortgage payments.

If your circumstances have changed (for example, you earn less, you have more debt, or you are now self-employed), this may affect the deals available to you. In some cases, your current lender may still offer you a product transfer without a full affordability assessment, which can be helpful if your income has dropped.

Step 3: Calculate Your Loan-to-Value and Property Value

Work out how much you owe on your current mortgage and estimate the current value of your property. Divide the outstanding loan by the property value and multiply by 100 to get your LTV percentage.

For example, if you owe £150,000 and your home is worth £250,000, your LTV is 60 per cent. This LTV band determines which mortgage rates you can access. Lower LTVs get better rates because the lender’s risk is lower.

If you are unsure of your property value, you can use online tools for an estimate, but lenders will carry out their own valuation when you apply.

Step 4: Compare Remortgage Offers

Use comparison websites, speak to a mortgage broker, or approach lenders directly to compare remortgage deals. Look at:

  • Interest rate (fixed, tracker, discount, or SVR)
  • Deal period (two years, five years, ten years)
  • Arrangement or product fees
  • Valuation and legal fees (some lenders offer free valuations or legal work)
  • Whether you can add fees to the loan
  • Flexibility (can you overpay without penalty? Can you take payment holidays?)
  • Cashback or incentives

A mortgage broker can help you find deals that suit your circumstances, including products that may not be available directly to consumers. Brokers may charge a fee or earn a commission from the lender. Ask upfront how they are paid and whether they search the whole market or only a panel of lenders.

Step 5: Get an Agreement in Principle (AIP)

Once you have found a deal you like, apply for an agreement in principle (AIP, also called a decision in principle). This is a conditional offer from the lender that shows you are likely to be approved for the mortgage, subject to a full application and valuation.

An AIP involves a soft or hard credit check (depending on the lender) and requires basic details about your income, employment, and the property. It is usually valid for 60 to 90 days and can help you lock in a rate if you are applying several months before your current deal ends.

Step 6: Submit a Full Mortgage Application

After you have your AIP, submit a full mortgage application. You will need to provide detailed evidence of your income, proof of identity, bank statements, details of your existing mortgage, and information about the property.

The lender will instruct a valuation to confirm the property value. Some lenders offer free valuations as part of the remortgage package. The valuation is for the lender’s benefit, not a full structural survey, so if you have concerns about the property’s condition, you may want to arrange your own survey separately.

The lender will also carry out affordability checks and credit checks. If everything is in order, they will issue a formal mortgage offer.

Step 7: Instruct a Solicitor or Conveyancer

Remortgaging requires legal work to transfer the mortgage from the old lender to the new one (or to update the charge if you are staying with the same lender). You will need to instruct a solicitor or licensed conveyancer.

Some lenders offer free legal work as part of the remortgage deal, in which case they will nominate a solicitor for you. If you are paying for your own legal work, shop around for quotes. Remortgage conveyancing is usually simpler and cheaper than purchase conveyancing because you already own the property.

The solicitor will carry out searches (though these are often minimal for a remortgage), request a redemption statement from your old lender (showing the exact amount you owe, including any exit fees or ERC), and prepare the legal documents.

Step 8: Complete the Remortgage

On the completion date, your new lender sends the funds to your solicitor, who pays off your old mortgage and registers the new charge against the property at the Land Registry. Any remaining funds (for example, if you are releasing equity) are transferred to your bank account.

Your old mortgage account is closed, and you start making monthly payments to your new lender according to the terms of your new deal.

The whole remortgage process typically takes four to eight weeks from application to completion, though it can be faster if you are doing a product transfer with your existing lender (sometimes as quick as a few days).

Common Mistakes to Avoid When Remortgaging

Waiting until after your deal ends. If you wait until you are already on the SVR, you will overpay in the meantime. Start comparing deals at least three to six months before your deal period ends.

Focusing only on the interest rate. A low rate with high fees can cost more overall than a slightly higher rate with no fees. Always calculate the total cost over the deal period.

Not checking your credit file first. Errors on your credit file can lead to a rejection or a higher rate. Review your file before you apply and dispute any mistakes.

Ignoring your current lender. Your existing lender may offer you a product transfer with minimal paperwork and no valuation or legal fees. Always compare their offer against the wider market before deciding.

Overpaying through early repayment charges. If you remortgage before your ERC-free period, the penalty can wipe out any savings from a lower rate. Check the ERC cost and do the sums before proceeding.

Not shopping around. Mortgage rates and offers vary widely. Use comparison sites, speak to a broker, and compare at least three lenders to ensure you are getting a competitive deal.

Releasing too much equity. Borrowing more through a remortgage increases your debt and monthly payments. Only release equity if you have a clear plan for the funds and are confident you can afford the higher repayments.

Frequently Asked Questions

Can I remortgage if I am self-employed?
Yes, but you will need to provide additional evidence of income, such as tax returns (SA302 forms) or accountant-certified accounts, usually for the last two or three years. Some lenders are more flexible with self-employed applicants than others, so it can help to use a broker.

How much does it cost to remortgage?
Costs vary but typically include an arrangement or product fee (ranging from nothing to £2,000 or more), a valuation fee (often free or a few hundred pounds), and legal fees (often free if the lender includes free legal work, or £300 to £800 if you pay separately). You may also face an early repayment charge if you leave your current deal early.

Can I remortgage with bad credit?
It is possible, but you will have access to fewer deals and may pay a higher interest rate. Lenders that specialise in adverse credit or second-charge mortgages may be options. Improving your credit score before applying, or waiting until negative marks age off your file, can help you access better rates.

What is the difference between remortgaging and a product transfer?
A product transfer (also called a rate switch) is when you move to a new deal with your existing lender without changing lender. It is often quicker and cheaper because there is no need for a full valuation, legal work, or affordability checks in many cases. Remortgaging usually means switching to a different lender, which involves a full application, valuation, and conveyancing.

How long does remortgaging take?
The process typically takes four to eight weeks from application to completion. A product transfer with your current lender can be faster, sometimes completed in a few days to two weeks.

Can I remortgage to release equity?
Yes, if your property has increased in value or you have paid down your mortgage, you can remortgage for a higher amount and use the extra funds for home improvements, debt consolidation, or other purposes. Be aware that this increases your loan balance and your monthly payments, and you will pay interest on the additional borrowing.

What happens if my property value has fallen?
If your property is now worth less than when you bought it, your LTV will be higher, which may mean you cannot access the best rates. In some cases, if your LTV has increased significantly, you may struggle to remortgage at all. Your current lender may still offer a product transfer, which can be a fallback option.

Should I use a mortgage broker?
A broker can save you time by searching the market on your behalf, accessing deals not available directly to consumers, and handling the application paperwork. Some brokers charge a fee (typically £300 to £500 or more), while others earn commission from the lender. Ask how they are paid and whether they search the whole market or only a panel of lenders before proceeding.

Conclusion

Remortgaging is one of the most effective ways to reduce your monthly mortgage payments and save money over the life of your loan. By switching to a new deal before your current rate ends, you can avoid reverting to your lender’s higher standard variable rate and take advantage of competitive rates in the market.

Start the process at least three to six months before your deal period ends, compare the total cost of offers (not just the headline rate), and check whether you have any early repayment charges before proceeding. If your circumstances have changed or your property value has increased, remortgaging can also help you release equity or access better rates through an improved loan-to-value ratio.

Remember, this article is for general educational purposes only and is not regulated mortgage advice. Eligibility, rates, fees, and product availability vary by lender and your personal circumstances. Speak to an FCA-authorised mortgage adviser to discuss your specific situation and confirm the best remortgage option for you. Your home may be repossessed if you do not keep up repayments on your mortgage.