Quick summary For more information, see FCA mortgage advice guidance.
- Start comparing remortgage deals four to six months before your fixed rate ends
- The standard variable rate (SVR) averages 7 to 9% in 2026, far above current fixed rates of 4 to 5%
- Locking in a new deal early is free insurance: you can usually switch to a better rate if one becomes available
- A broker compares your lender’s product transfer offer against the full open market
Remortgaging is one of the most straightforward ways to save money on your mortgage, yet a large number of UK homeowners either leave it too late or simply do nothing and drift onto their lender’s standard variable rate. In 2026, with fixed rates available from around 4% and SVRs sitting at 7 to 9%, the cost of inaction is substantial.
This guide explains exactly when to remortgage, how the process works, what it costs, and how to decide between a product transfer with your existing lender and switching to someone new.
What is remortgaging?
Remortgaging means switching your mortgage to a new deal. That deal might be with your existing lender (called a product transfer) or with a completely new lender. The goal is usually to secure a lower interest rate, release equity, or change the terms of your mortgage.
In most cases, homeowners remortgage when their existing fixed rate or tracker deal is coming to an end. If you do nothing at that point, you automatically move onto your lender’s standard variable rate, which is substantially higher than any fixed rate product currently available.
When to start looking
The most important piece of timing advice is this: start comparing deals four to six months before your current rate ends. Most lenders allow you to lock in a new rate this far in advance, with the deal starting when your existing one expires. There is no downside to starting early.
The early lock-in advantage
If you secure a rate today and a better rate becomes available before your deal starts, most brokers can switch you across at no cost. So by locking in early, you protect against rates rising while retaining the ability to benefit if they fall. It is free insurance.
| When your deal ends | What you should do now |
|---|---|
| Within 6 months | Start comparing immediately. You are in the window to lock in without early repayment charges. |
| 6 to 12 months away | Get an overview of the market. Some lenders accept applications up to six months early; others further. |
| More than 12 months away, mid-fix | Calculate your early repayment charge and compare against the saving on a lower rate. May or may not be worth breaking early. |
| Already on SVR | Remortgage as soon as possible. Every month on SVR is costing you significantly more than it needs to. |
Product transfer vs switching lenders
When your deal ends, your current lender will typically offer you a range of new products. These product transfers are fast, require no new affordability assessment and involve no legal costs. They are often the easier path.
However, easy does not mean cheapest. The open market rate is frequently 0.2 to 0.5% lower than a comparable product transfer rate. On a £250,000 mortgage, 0.3% is around £750 per year. Over a five-year fix, that is £3,750.
Example: product transfer vs open market
A homeowner has £220,000 remaining on her mortgage. Her lender offers a 5-year fix at 4.7%. A broker finds a 5-year fix at 4.3% with a new lender, with a free valuation and cashback covering legal costs. The 0.4% difference saves £880 per year. Over five years, after accounting for arrangement fees, the switch saves approximately £3,500. For a 20-minute phone call with a broker, that is a worthwhile outcome.
What does remortgaging cost?
| Cost | Typical range | Notes |
|---|---|---|
| Mortgage arrangement fee | £0 to £2,000 | Some deals are fee-free; others have a fee that can be added to the mortgage (though this increases total interest) |
| Valuation fee | Often free for remortgages | Many lenders offer free valuations as a remortgage incentive |
| Legal and conveyancing | Often free for remortgages | Many lenders offer free legal work when switching; if not, expect £300 to £700 |
| Early repayment charge (if breaking a fix early) | 1% to 5% of outstanding balance | Only applies if you switch before your current deal ends |
Releasing equity when you remortgage
If your property has increased in value since you bought it, you may be able to remortgage to release some of that equity as a cash lump sum. This is often used for home improvements, debt consolidation or other major expenditure.
Releasing equity increases your mortgage balance. The amount you can release depends on your current loan-to-value and the lender’s maximum LTV. Most lenders will lend up to 85% LTV for equity release remortgages; some up to 90%.
Think carefully before consolidating debts
Rolling unsecured debt (credit cards, personal loans) into your mortgage converts short-term debt into long-term debt secured against your home. While it may reduce monthly payments, you will typically pay more interest overall and the debt becomes secured against your property. Seek advice before proceeding.
How your LTV affects the rate available
Your loan-to-value is one of the single most important factors in determining the rate you can access. As your mortgage balance reduces and/or your property value rises, your LTV falls and better rates become available.
It is worth getting a current property valuation before remortgaging, particularly in areas where prices have risen significantly. Moving from 75% LTV to 65% LTV can improve your rate by 0.3 to 0.5%.
The remortgage process: what to expect
Check your current deal
Find out exactly when your fixed rate ends and whether any early repayment charges apply. Your mortgage statement or your lender’s online portal will have this information.
Get your property valued
An up-to-date valuation tells you your current LTV, which determines the rate bands available to you. Your broker will arrange this as part of the remortgage process.
Compare product transfers and the open market
A whole-of-market broker will compare your current lender’s retention offers against the full market simultaneously. This takes minutes but can identify savings worth thousands of pounds.
Submit your application
For a product transfer, there is usually no new affordability assessment or legal work. For a switch to a new lender, you will provide updated income documents and there will be a valuation and legal process.
New deal begins
The new rate starts when your existing deal ends. If you locked in early and a better rate became available, your broker can often switch you to the lower rate before completion.
Frequently asked questions
Can I remortgage to a longer term to reduce monthly payments?
Yes. Extending your mortgage term reduces your monthly payment but increases the total interest you pay over the life of the loan. It is a legitimate option if you need to reduce current monthly outgoings, with the understanding that you are paying more overall. You can always make overpayments later to shorten the term when your finances allow.
I am on maternity or paternity leave. Can I still remortgage?
Yes, though you need to document it carefully. Provide your employer’s letter confirming your return-to-work date and salary. Most lenders will use your full employment salary (not the reduced maternity/paternity pay) for affordability purposes, provided you are returning to the same role.
What is a tracker rate and is it worth considering?
A tracker mortgage follows the Bank of England base rate plus a fixed margin. If the base rate falls, your payments fall. If it rises, your payments rise. In an environment where rates are expected to fall, a short-term tracker can be attractive. However, if rates rise or remain elevated, a fixed rate provides more certainty.
Does remortgaging affect my credit score?
Applying for a remortgage involves a hard credit search, which can temporarily reduce your score by a small amount. This typically recovers within a few months. The impact is minimal and should not put you off remortgaging when it makes financial sense.
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