When to Remortgage in the UK and How to Secure the Best Rate

Key Takeaway

Remortgaging typically makes sense three to six months before your current fixed or discounted deal ends, avoiding reversion to your lender’s standard variable rate (SVR), which is usually much higher. A fixed-rate remortgage offers payment certainty, while a tracker follows the Bank of England base rate and can be cheaper if rates fall. Shop around, check for early repayment charges (ERCs), and compare the true cost including fees to secure the best rate for your circumstances.

Why Remortgaging Matters

When your initial mortgage deal period ends, your rate automatically reverts to your lender’s SVR, often 2% to 4% higher than competitive fixed or tracker deals. Remortgaging allows you to switch to a new product with your existing lender (a product transfer) or move to a different lender entirely, potentially saving thousands of pounds over the loan term.

According to MoneyHelper, the best time to start the remortgage process is around three to six months before your current deal ends, giving you time to compare offers and complete the application without incurring early repayment charges.

Remortgage Options Compared

Option	Best For	Rate Type	Key Benefit	Main Drawback
Product Transfer	Staying with current lender	Fixed or tracker	Fast, no valuation or legal fees	May miss better deals elsewhere
2-Year Fixed Rate	Those wanting short-term certainty	Fixed	Lower initial rate, flexibility	Need to remortgage again sooner
5-Year Fixed Rate	Long-term stability seekers	Fixed	Payment certainty for five years	Higher rate than 2-year, ERCs if exiting
Tracker Mortgage	Risk-tolerant, base rate expected to fall	Variable (tracks base)	Can benefit from rate cuts	Payments rise if base rate increases
Discount Mortgage	Bargain hunters comfortable with risk	Variable (discount on SVR)	Initial savings over SVR	Still tied to lender’s SVR changes

When to Switch Your Mortgage Deal

Three to six months before your deal ends is the optimal window. Most lenders allow you to apply for a new deal during this period and lock in a rate, with the new mortgage starting when your current deal expires. This avoids paying the SVR even for a single month.

If you are already on your lender’s SVR, switch as soon as possible. The Financial Conduct Authority encourages borrowers to shop around regularly, as staying on an SVR costs significantly more than remortgaging to a competitive deal.

Check for early repayment charges (ERCs) if you want to remortgage before your deal ends. ERCs typically range from 1% to 5% of the outstanding mortgage balance and apply during the initial fixed or discounted period. Weigh the ERC cost against potential savings from a lower rate.

Choosing Between Fixed and Tracker Rates

Fixed-rate remortgages lock your interest rate for two, three, five, or even ten years, protecting you from base rate rises. They suit borrowers who prioritise budgeting certainty and expect interest rates to rise or remain high.

Tracker mortgages move in line with the Bank of England base rate (usually base rate plus a set margin, such as 1.5%). If the base rate falls, your payments drop immediately. Trackers suit those who believe rates will decline or want the flexibility of lower ERCs (many trackers have no ERCs after an initial period).

As of July 2026, rates change frequently; verify current terms with an FCA-authorised lender or adviser before deciding.

Pros and Cons by Remortgage Type

Product Transfer (Same Lender)

Pros: Quick approval, no valuation or legal fees, no affordability reassessment in most cases.
Cons: You may find cheaper rates by switching lenders; loyalty does not always pay.

2-Year Fixed Rate

Pros: Lower initial rate than longer fixes, freedom to remortgage again in two years without lengthy ERCs.
Cons: Remortgage costs recur sooner, and you face rate uncertainty after two years.

5-Year Fixed Rate

Pros: Five years of payment stability, fewer remortgage transactions, protection from rate volatility.
Cons: Higher rate than a 2-year fix, substantial ERCs if you need to exit early (for example, if you move home).

Tracker Mortgage

Pros: Immediate benefit from base rate cuts, often lower rates than fixed deals when the base rate is stable or falling.
Cons: Payment uncertainty, risk of sharp increases if the base rate rises unexpectedly.

How to Get the Best Remortgage Rate

Improve your loan-to-value (LTV): The more equity you own, the lower your rate. If your property has increased in value or you have paid down your mortgage, your LTV improves, qualifying you for better deals.
Check your credit file: A strong credit score opens access to the most competitive rates. Correct any errors on your credit report and avoid new credit applications in the months before remortgaging.
Compare total costs, not just rates: Factor in arrangement fees, valuation fees, and legal costs. A slightly higher rate with no fees can be cheaper overall than a low rate with a hefty product fee.
Use an FCA-authorised mortgage broker: Brokers access the whole market (including exclusive deals not available directly) and can negotiate on your behalf, according to MoneySavingExpert.
Lock in early: Rates are typically guaranteed for three to six months. Apply as soon as you can to protect against rate rises before your new deal starts.

Common Mistakes to Avoid

Staying on the SVR: This is the costliest mistake. Always remortgage before your deal ends.
Ignoring ERCs: Switching during your fixed period without checking ERCs can wipe out any savings.
Focusing only on the interest rate: A low rate with a high arrangement fee may cost more than a slightly higher rate with lower fees.
Not shopping around: Your current lender’s retention offer may be convenient but rarely the cheapest option on the market.
Missing the remortgage window: Starting too late can leave you on the SVR for months while your new application is processed.

Recommendations by Reader Profile

First-time remortgager or tight budget: Choose a 2-year fixed-rate product transfer with your current lender for speed and certainty, then explore the wider market when that deal ends.

Long-term planner wanting stability: A 5-year fixed rate provides peace of mind and fewer remortgage transactions, ideal if you expect to stay in your home and rates to remain volatile.

Risk-tolerant with flexible plans: A tracker mortgage offers the potential for lower payments if the base rate falls, and many trackers allow overpayments or early exits without ERCs after an initial period.

Rate-switcher or property investor: A 2-year fixed rate gives you the flexibility to remortgage frequently and take advantage of rate changes or property value growth.

Conclusion

Remortgaging in the UK is essential to avoid paying your lender’s expensive SVR. Start comparing deals three to six months before your current product ends, weigh the total cost including fees, and choose a fixed rate for certainty or a tracker to benefit from potential base rate cuts. Your home may be repossessed if you do not keep up repayments on your mortgage. For personalised advice tailored to your financial circumstances, speak to an FCA-authorised mortgage adviser.

Financial Disclaimer: This article provides general educational information about remortgaging in the UK and is not regulated mortgage advice or personalised financial, lending, or legal advice. Refisage is not authorised by the Financial Conduct Authority (FCA). Mortgage eligibility, rates, fees, and product availability vary by lender, product, and your individual circumstances. Rates change frequently; verify current terms with an FCA-authorised mortgage adviser or lender before making any decisions. Always consider seeking guidance from an FCA-authorised mortgage adviser, MoneyHelper, or a qualified professional for your personal situation.