Remortgaging means switching your existing mortgage to a new deal — either with your current lender or a different one — without moving home. It is one of the most common ways UK homeowners can save money or access additional borrowing, yet many people let their mortgage roll onto an expensive standard variable rate simply by not taking action.
Why do people remortgage?
The most common reason to remortgage is that a fixed-rate or tracker deal is coming to an end. Without taking action, most mortgages automatically revert to the lender's standard variable rate (SVR), which is typically significantly higher than competitive fixed or tracker rates. Remortgaging to a new deal — either with your existing lender or by switching — avoids this jump in cost.
Other common reasons to remortgage include wanting to release equity from your home (borrowing additional money secured against the increased value of your property, for example to fund renovations), wanting to switch from an interest-only to a repayment mortgage, consolidating other debts into your mortgage (though this extends the repayment period of that debt and increases total interest paid), or simply finding a better rate than your current deal as market conditions change.
When should you start the remortgaging process?
It is generally recommended to start looking at remortgaging options around three to six months before your current deal ends. This gives enough time to research and apply for a new deal without rushing, and many lenders allow you to secure a new rate up to six months in advance, which can be cancelled or changed if a better rate becomes available closer to the time.
Product transfer vs full remortgage
There are two main ways to remortgage. A product transfer involves switching to a new deal with your existing lender, which is typically a simpler process — often without a new valuation or full underwriting — but may not always offer the most competitive rate available in the wider market. A full remortgage involves moving to a different lender entirely, which typically requires a new application, valuation and underwriting process similar to an initial mortgage application, but may offer access to better rates or larger borrowing amounts.
What about early repayment charges?
If you remortgage before your current fixed or tracker deal ends, you may face an early repayment charge (ERC) from your existing lender — typically a percentage of the outstanding mortgage balance, often reducing the longer you have been in the deal. It is important to check whether an ERC applies and calculate whether the savings from a new deal outweigh this cost before proceeding. Remortgaging at the natural end of your current deal avoids ERCs entirely.
How does your loan-to-value affect remortgaging?
If your property has increased in value, or you have paid down a portion of your mortgage, your loan-to-value (LTV) ratio may have improved since you took out your original mortgage. A lower LTV can give you access to better interest rates when remortgaging, as it represents lower risk to the lender. Getting an up to date valuation, even informally through online estimation tools, can help you understand which rate bracket you might now qualify for.
Releasing equity through remortgaging
If your property has increased in value or you have paid down your mortgage, you may be able to remortgage for a larger amount than you currently owe, releasing the difference as cash — commonly used for home improvements, debt consolidation, or other large expenses. This increases your overall mortgage debt and monthly payments, so it is worth carefully considering whether this is the most appropriate way to access funds compared to other forms of borrowing.
Should you use a mortgage broker?
A mortgage broker can search across the market to find competitive remortgage deals suited to your circumstances, which can be particularly valuable if your situation has changed since your original mortgage (such as a change in income, credit history, or property value). Brokers may also identify deals not available directly to consumers.