If your fixed-rate or tracker deal is coming to an end, or you simply want to review whether you’re on the best mortgage available, remortgaging is worth understanding properly. Done at the right time, it can save you a significant amount of money. Done without checking the details, it can land you on a worse deal than you started with. Here’s everything you need to know.
What Does Remortgaging Actually Mean?
Remortgaging means switching your mortgage to a new deal, either with your existing lender or a different one, without moving house. This is different from a product transfer, where you move to a new deal with your current lender without a full new application, and different from porting, where you take your existing mortgage deal with you to a new property.
Most people remortgage when their current fixed or tracker deal is ending, but you can also remortgage at other times, for example, to release equity, consolidate debt, or simply because a much better deal has become available.
Why Do People Remortgage?
To avoid moving onto the Standard Variable Rate (SVR). When a fixed or tracker deal ends, you’re usually moved onto your lender’s SVR automatically, which is typically higher than the rate you were paying. Remortgaging before this happens, onto a new fixed or tracker deal, avoids this jump.
To release equity. If your property has increased in value or you’ve paid down a chunk of your mortgage, you may be able to borrow against the equity you’ve built up, for home improvements, debt consolidation or other large expenses.
To change your mortgage type. For example, switching from a tracker to a fixed rate for payment certainty, or vice versa.
To change your mortgage term. You might want to extend your term to lower monthly payments, or shorten it to pay off the mortgage faster and reduce total interest paid.
When Is the Right Time to Remortgage?
Most lenders let you start arranging a new deal three to six months before your current deal ends, and many remortgages can be locked in up to six months ahead at today’s rate, giving you protection if rates rise in the meantime, while still allowing you to switch to something better if rates fall before completion.
Leaving it too late is one of the most common and avoidable mistakes: miss the window, and you could slip onto your lender’s SVR for even a short period, costing you more than necessary.
Early Repayment Charges (ERCs)
If you’re still within your current deal’s fixed or discounted period, switching early usually comes with an Early Repayment Charge, often a percentage of the remaining loan, which can be several thousand pounds. Before remortgaging early, it’s worth comparing the ERC against the savings a new deal would offer, since sometimes it’s genuinely worth paying the charge, and sometimes it isn’t. A broker can run these numbers for you.
What Does the Remortgage Process Involve?
- Review your current deal — note your end date, ERCs, and current balance
- Get a valuation estimate of your property to understand your current equity and LTV
- Compare the market — a broker can check both your existing lender’s retention deals and the wider market
- Apply for your new mortgage, providing updated income evidence, bank statements and ID, similar to your original application
- Valuation and underwriting — the new lender assesses your finances and the property
- Receive your new mortgage offer
- Legal work and completion — your solicitor handles the switch; this is often simpler than a home purchase since there’s no chain involved
The whole process typically takes around four to eight weeks, though starting three to six months ahead of your current deal ending gives you comfortable breathing room.
Remortgaging vs Product Transfer: Which Is Better?
| Remortgage | Product Transfer | |
|---|---|---|
| Lender | Can switch to a new lender | Stays with your current lender |
| Application | Full new application and checks | Usually simpler, fewer checks |
| Market comparison | Access to the whole market | Limited to your current lender’s deals |
| Legal work | Usually required | Usually not required |
| Best for | Getting the most competitive rate | Speed and simplicity |
It’s tempting to default to a product transfer because it’s quicker and less paperwork, but it also means you’re only seeing one lender’s offers rather than comparing the whole market. A broker can usually check both in parallel and tell you honestly which comes out ahead.
Does Remortgaging Affect Your Credit Score?
A remortgage application involves a credit check, similar to any mortgage application, which can cause a small, temporary dip in your score. This is normal and shouldn’t cause concern provided your overall credit history is healthy.
Stamp Duty and Remortgaging
Good news here: remortgaging doesn’t trigger Stamp Duty Land Tax, since you’re not purchasing a new property, you’re switching the mortgage on one you already own.
Frequently Asked Questions
How long before my deal ends should I start remortgaging?
Most lenders allow you to secure a new deal three to six months in advance, which is generally the ideal window to start.
What happens if I do nothing when my fixed rate ends?
You’ll automatically move onto your lender’s Standard Variable Rate, which is usually higher than a new fixed or tracker deal.
Can I remortgage with bad credit?
It’s possible, though your options may be more limited. A broker can help identify lenders more likely to accept your circumstances.
Is it better to remortgage with my current lender or switch?
It depends on the deal available from each. A product transfer with your current lender is usually quicker, but a full remortgage lets you compare the whole market, which may offer a better rate.
Will I need a new valuation when I remortgage?
Usually yes, the new lender will want to confirm the property’s current value, which also determines your loan-to-value and the rates available to you.
Deal ending soon, or just want to check you’re on the best rate? Speak to our team for a free, no-obligation remortgage review.
