Your mortgage deal is ending, and you’ve been told you should “remortgage” — but where do you start? If you’ve never switched before, this guide explains everything: why to remortgage, when to do it, how to find the best deal, and what happens step by step.
What is Remortgaging?
Remortgaging means replacing your current mortgage with a new one. You can:
- Switch to a new deal with your current lender (called a “product transfer”)
- Move your mortgage to a different lender (remortgaging to a new lender)
Either way, the goal is usually to get a better interest rate and lower your payments.
Why Remortgage?
1. Your Current Deal is Ending
Most mortgages start with a fixed or discounted rate lasting 2-5 years. When this ends, you move to the lender’s Standard Variable Rate (SVR), which is typically much higher.
| Rate type | Typical rate | On £200,000 mortgage |
|---|---|---|
| Fixed rate deal | 4.5% | £1,111/month |
| SVR | 7.5% | £1,398/month |
| Monthly difference | £287 |
Over a year, staying on SVR could cost you £3,444 extra. Remortgaging avoids this.
2. Get a Better Rate
Even if you’re mid-deal, remortgaging might save money if:
- Rates have dropped significantly
- Your property value has increased (better LTV = better rates)
- Your credit score has improved
Calculate whether savings outweigh early repayment charges (ERCs).
3. Release Equity
If your property has grown in value, you can remortgage for a larger amount and take cash out. Uses include:
- Home improvements
- Consolidating debts
- Helping children with deposits
- Other large expenses
Warning: You’re borrowing against your home. If you can’t repay, your home is at risk.
4. Change Your Mortgage Terms
Remortgaging lets you:
- Switch from interest-only to repayment (or vice versa)
- Extend or reduce your mortgage term
- Add or remove someone from the mortgage
When to Start the Remortgage Process
The 6-Month Rule
Start looking 3-6 months before your current deal ends. Here’s why:
| Timeline | Action |
|---|---|
| 6 months before | Check your current deal’s end date |
| 5-6 months before | Research deals, compare rates |
| 4-5 months before | Apply for your new mortgage |
| 3-4 months before | Receive offer, instruct solicitors |
| 1-2 months before | Complete legal work |
| Deal end date | New mortgage starts |
Why Not Leave It Later?
- Processing takes 4-8 weeks (sometimes longer)
- You risk going onto SVR if delayed
- Rate changes — locking early protects you if rates rise
- Less stress with time to fix any issues
Can I Lock In a Rate Early?
Most lenders let you reserve a rate up to 6 months before completion. If rates drop, you can often switch to the lower rate. If they rise, you’re protected.
Option 1: Product Transfer (Same Lender)
A product transfer means staying with your current lender but switching to a new deal.
Advantages
| Benefit | Why it matters |
|---|---|
| Faster | Often completes in days |
| No valuation needed | Usually waived |
| No legal work | Your solicitor isn’t needed |
| No credit check (usually) | If borrowing same amount |
| Can do it online | Some lenders offer instant switching |
Disadvantages
| Drawback | Consideration |
|---|---|
| May not be cheapest | Other lenders might offer better rates |
| Limited options | Only your lender’s deals available |
| Can’t change amount | Usually can’t borrow more without full application |
When to Choose a Product Transfer
- Rates are competitive with the market
- You want simplicity and speed
- You don’t need to borrow more
- Your circumstances haven’t changed much
How to Do It
- Log into your lender’s website or app
- Go to “manage mortgage” or similar
- View available product transfers
- Select your new deal
- Confirm the switch
Or call your lender’s retention team.
Option 2: Remortgage to a New Lender
Switching lenders is more work but can save more money.
Advantages
| Benefit | Why it matters |
|---|---|
| Potentially lower rates | Full market access |
| Free incentives | Often free legals and valuation |
| Can borrow more | If you need to release equity |
| Fresh assessment | Better LTV may unlock better deals |
Disadvantages
| Drawback | Consideration |
|---|---|
| Takes longer | 4-8 weeks typically |
| More paperwork | Full application required |
| Credit check | Affects credit score |
| Legal work | Even if “free,” still takes time |
When to Switch Lenders
- Another lender offers significantly better rates
- You want to borrow more money
- Your current lender won’t offer good rates
- Your LTV has improved (property value up)
Finding the Best Remortgage Deal
Step 1: Know Your Numbers
Before comparing deals, gather:
| Information | Where to find it |
|---|---|
| Current mortgage balance | Statement or lender app |
| Property value | Online tools (Zoopla, Rightmove) or recent valuation |
| Loan-to-value (LTV) | Balance ÷ property value × 100 |
| Current deal end date | Mortgage contract or statement |
| Early repayment charges | Mortgage contract |
Step 2: Calculate Your LTV
LTV affects the rates you’re offered:
| LTV bracket | Rate quality | Example (£200k property) |
|---|---|---|
| 60% or less | Best rates | £120,000 mortgage or less |
| 60-75% | Good rates | £120,001-150,000 mortgage |
| 75-85% | Standard rates | £150,001-170,000 mortgage |
| 85-90% | Higher rates | £170,001-180,000 mortgage |
| 90%+ | Limited options | Over £180,000 mortgage |
If your property has increased in value, your LTV may have improved — unlocking better rates.
Step 3: Compare Deals
Use comparison sites:
- MoneySupermarket
- Compare the Market
- Moneyfacts
- Uswitch
What to compare:
- Interest rate
- Total cost over deal period (including fees)
- Monthly payment
- Fee structure
- Incentives (free legal, free valuation)
Step 4: Consider a Mortgage Broker
Brokers can:
- Access deals not available directly
- Handle the paperwork
- Advise on your best options
- Negotiate with lenders
Cost: Some charge fees (£300-500), others are paid by lenders (free to you).
Recommended for: Complex circumstances, poor credit, self-employed borrowers, or if you want guidance.
Understanding Remortgage Costs
Costs You May Pay
| Cost | Typical amount | Notes |
|---|---|---|
| Arrangement fee | £0-2,000 | Product fee for the new mortgage |
| Valuation fee | £0-500 | Often free on remortgage deals |
| Legal fees | £300-500 | Often free (“free legals” deals) |
| Exit fee | £50-300 | Charged by old lender for closing account |
| Early repayment charge | 1-5% of balance | Only if leaving mid-fixed term |
Watch Out For: Early Repayment Charges
If you’re in a fixed or discounted deal, leaving early triggers an ERC:
| Years remaining | Typical ERC | On £200,000 mortgage |
|---|---|---|
| 3 years | 3% | £6,000 |
| 2 years | 2% | £4,000 |
| 1 year | 1% | £2,000 |
| Deal ended | 0% | £0 |
Calculate carefully: Sometimes savings still outweigh ERCs, especially if rates have dropped significantly.
Example Cost Comparison
Scenario: £200,000 mortgage, switching at deal end
| Option | Arrangement fee | Legal | Valuation | Monthly payment | 2-year total |
|---|---|---|---|---|---|
| Stay on SVR | £0 | £0 | £0 | £1,398 | £33,552 |
| Product transfer 4.5% | £500 | £0 | £0 | £1,111 | £27,164 |
| Switch lender 4.3% | £999 (free legals/val) | £0 | £0 | £1,094 | £27,255 |
In this example, the product transfer wins despite higher rate due to lower fees.
Step-by-Step: How to Remortgage
Step 1: Check Your Current Deal (6 months before)
- Find your deal end date
- Note any ERCs
- Check your current interest rate
- Request a redemption statement
Step 2: Get Your Property Valued (5-6 months before)
Use online tools for an estimate:
- Zoopla
- Rightmove
- Your Land Registry sold prices
A lender will do an official valuation during application.
Step 3: Research and Compare (5-6 months before)
- Check your current lender’s product transfer rates
- Compare with other lenders
- Consider using a broker
- Factor in all fees
Step 4: Make a Decision (4-5 months before)
Choose between:
- Product transfer (quick, easy)
- Switching to new lender (potentially cheaper)
Step 5: Apply (4-5 months before)
For product transfer:
- Apply online or phone your lender
- Usually approved within days
- Minimal paperwork
For switching lenders:
- Complete application form
- Provide supporting documents (see below)
- Credit check performed
- Property valued
Step 6: Receive Your Offer (3-4 months before)
The new lender issues a mortgage offer (valid 3-6 months). Review it carefully:
- Check the rate matches what you applied for
- Confirm the terms
- Note any conditions
Step 7: Instruct Solicitors (3-4 months before)
If switching lenders, a solicitor handles:
- Paying off your old mortgage
- Registering the new lender’s charge
- Transferring funds
Many deals include free legal work — usually done by a panel solicitor.
Step 8: Complete (deal start date)
On your chosen date:
- Solicitor pays off old mortgage
- New mortgage starts
- New payments begin (usually from the following month)
Documents You’ll Need
If switching to a new lender, prepare:
| Document | Notes |
|---|---|
| Photo ID | Passport or driving licence |
| Proof of address | Utility bill or bank statement (last 3 months) |
| Bank statements | Last 3 months of all accounts |
| Payslips | Last 3 months (employed) |
| P60 | Last tax year (employed) |
| SA302 / tax returns | Last 2-3 years (self-employed) |
| Current mortgage statement | Recent statement from existing lender |
| Credit commitments | Details of loans, cards, car finance |
Special Circumstances
Self-Employed Borrowers
You’ll need:
- 2-3 years of accounts or SA302s
- Tax year overview from HMRC
- Business bank statements
- Accountant’s reference (sometimes)
Some lenders are more self-employed friendly than others — a broker helps here.
Changed Circumstances
If your situation has changed since your last mortgage:
- Lost job
- Reduced income
- New debts
- Changed to self-employment
- Health issues
Your options may be more limited. A broker can help identify lenders with suitable criteria.
Negative Equity
If your property is worth less than your mortgage:
- Product transfer is usually possible
- Switching lenders is difficult
- Consider overpaying to reduce balance
- Wait for property values to recover
Interest-Only Mortgages
If you have an interest-only mortgage:
- Product transfers are often possible
- Switching lenders may require a repayment vehicle
- Consider switching to repayment to build equity
- Lenders are stricter now than historically
Common Mistakes to Avoid
Mistake 1: Leaving It Too Late
Start 6 months early. Rushing leads to poor decisions or landing on SVR.
Mistake 2: Only Looking at Interest Rate
A 4.2% deal with £1,500 fees might cost more than a 4.4% deal with no fees over 2 years. Compare total cost over the deal period.
Mistake 3: Ignoring Product Transfers
Your current lender may match market rates with zero hassle. Always check.
Mistake 4: Not Checking ERCs
Leaving mid-deal can cost thousands. Know your ERC before making decisions.
Mistake 5: Forgetting About Fees
“Free legals” and “free valuation” aren’t always free — sometimes offset by higher rates. Do the maths.
Mistake 6: Borrowing More Without Need
Releasing equity is borrowing. Only do it if necessary and you’ve calculated the cost.
Mistake 7: Extending Your Term Unnecessarily
A 35-year term lowers payments but massively increases total interest paid. Keep your term short if affordable.
Should You Use a Mortgage Broker?
When a Broker Helps Most
- First time remortgaging (guidance through the process)
- Complex circumstances (self-employed, poor credit)
- Equity release (need advice on risks)
- Little time (broker does the legwork)
- No clear preference (broker narrows options)
Finding a Good Broker
- Check they’re FCA regulated
- Ask about fees (some are fee-free)
- Check reviews
- Ensure they’re “whole of market” (not tied to specific lenders)
Key Takeaways
- Start 6 months early — lock in rates before your deal ends
- Never stay on SVR — it costs hundreds extra per month
- Compare product transfer vs switching — sometimes staying put wins
- Factor in ALL costs — fees, ERCs, not just interest rate
- Use comparison sites or a broker for best rates
- Gather documents early — speeds up the process
- Set reminders — note your deal end date and act in advance
This guide is for general information about remortgaging in the UK. Mortgage decisions are complex — consider speaking with a qualified, independent mortgage adviser for personal recommendations. Your home may be repossessed if you do not keep up repayments on a mortgage.