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.
For the wider cluster covering product transfers, fixed-rate endings, fees, timing and switching options, use the main Remortgaging hub.
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.
Related Guide
Your home may be repossessed if you do not keep up repayments on your mortgage. PocketWise provides information and guidance, not financial advice. Seek independent mortgage advice before making decisions about borrowing.