Remortgage Guide | If you’re considering a remortgage, you’ll already be familiar with how mortgages work. A remortgage simply means renegotiating your mortgage without moving home. It could help you reduce monthly repayments, release equity from your property, or switch to a more competitive deal.
Why timing matters
Acting at the right time is essential. Many homeowners delay and end up on their lender’s Standard Variable Rate (SVR), which is usually more expensive. To avoid this, you should start reviewing your mortgage around six months before your current fixed rate ends.
What is Remortgaging?
Remortgaging means switching your current mortgage to a new deal, either with your current lender or a new one.
You might want to:
Get a lower interest rate
Fix your payments again
Release some equity for home improvements
Consolidate debts
Move to a product that suits your new situation
You don’t always need to move house to change your mortgage. It’s about finding a better fit.
Why Timing Matters
Many homeowners wait until their rate ends before acting. That’s often a costly mistake.
Most lenders allow you to secure a new mortgage up to six months in advance.
This gives you time to:
Explore deals
Get paperwork sorted
Avoid slipping onto a costly SVR
Start early to avoid rushed decisions and missed savings.
Standard Variable Rate (SVR) Explained
SVR is the default rate your lender moves you to when your fixed or tracker deal ends.
These rates are:
Often higher than fixed or tracker rates
Subject to change without warning
Not usually competitive
Even a short period on SVR can increase your monthly payments significantly.
When Should You Remortgage?
You should consider remortgaging if:
Your fixed or tracker rate ends in the next 6 months
You’re currently on SVR
Your home’s value has increased
Your income or outgoings have changed
You want to raise funds for another purpose
You need a longer or shorter term
Remortgaging isn’t just about saving — it’s about ensuring your deal still suits your needs.
Common Remortgage Reasons
1. To Save Money
You may find a lower rate elsewhere, especially if your loan-to-value (LTV) has improved.
2. To Fix Your Rate Again
Lock in a new fixed rate for certainty over future payments.
3. To Release Equity
You can raise funds for renovations, tuition fees, or other large expenses by borrowing more against your home.
4. To Consolidate Debts
Roll other debts into your mortgage. This can reduce monthly outgoings, but it increases the loan term.
Remortgage Facts & Figures Table (UK)
| Category | Fact or Information |
|---|---|
| SVR Average (UK, 2025) | Approx. 7.5% — varies by lender; usually higher than fixed or tracker deals. |
| Fixed Rate Typical Term | 2, 3, or 5 years — some lenders offer 7- or 10-year fixes. |
| Remortgage Timeline | Allow 4 to 8 weeks for most remortgage cases to complete. |
| Advance Planning Window | Start reviewing your options 6 months before your fixed rate ends. |
| Minimum Equity Required | Typically 5–10% equity (90–95% LTV products available). |
| Best LTV Range | 60% or lower LTV often gets access to the most competitive rates. |
| Early Repayment Charges | Can range from 1% to 5% depending on lender and how early you exit your deal. |
| Credit Score Range Needed | Good to excellent (typically above 670) for best rates — though some lenders accept lower. |
| Typical Legal Fees | £300–£600 — many remortgage deals offer free legal work. |
| Valuation Fees | Often free with remortgage products; standalone costs can be £200–£500. |
| Remortgage for Equity | You can usually borrow up to 85% of your home’s value, depending on lender. |
| Debt Consolidation Limit | Subject to affordability — lender will assess ability to repay over full mortgage term. |
| Number of UK Remortgages | Over 400,000+ remortgages occur annually in the UK (source: UK Finance). |
What Lenders Assess in a Remortgage Application
Even if you already own the property, lenders still assess risk and affordability.
They’ll check:
Your income (salary, benefits, self-employed earnings)
Monthly expenses and debts
Credit history and score
Property value and equity
Mortgage term and remaining balance
Your employment status
Providing accurate documents speeds up the process.
What Documents You’ll Need
Passport or driving licence
Latest utility bill or council tax notice
Three months of bank statements
Payslips or SA302s if self-employed
Mortgage statement
Evidence of the property’s value (usually via lender survey)
Some lenders may require additional paperwork, depending on the loan size or structure.
Product Types Available When Remortgaging
Fixed Rate — Rate stays the same for a set period. Great for budgeting.
Tracker — Follows the Bank of England base rate. Could rise or fall.
Offset — Links savings to your mortgage to reduce interest paid.
Interest-Only — You pay interest only. Full loan must be repaid at term end.
Each comes with different risks and benefits. Choose based on your budget and future plans.
Why Use a Mortgage Broker?
You can remortgage directly with a lender, but a mortgage broker may offer broader access to products.
Lender:
Limited to their own products
Usually requires full application process
Broker:
Searches across many lenders
Helps find a suitable deal quickly
May access exclusive or intermediary-only rates
They can also manage the process and reduce delays.
Fees to Watch Out For
Some mortgages come with fees. Always ask what’s included.
Arrangement Fee — Charged by the lender for setting up the loan
Valuation Fee — May apply if the lender needs a new valuation
Legal Fees — Usually lower for remortgages, but still applies
Exit Fee / Early Repayment Charge (ERC) — Check your current deal’s terms before switching
Ask your broker or lender for a total cost comparison.
Things That Could Delay Your Remortgage
Incomplete documents
Errors on your credit report
Changing jobs recently
Applying for other credit products
High debt levels
Using an inaccurate property value
Always give truthful, up-to-date information and speak to a mortgage adviser early.
Tips to Prepare for Remortgaging
- Review your mortgage deal at least six months before it ends
- Improve your credit score by clearing missed payments
- Avoid new credit applications before remortgaging
- Gather documents early
- Speak to a broker for tailored guidance
- Don’t let your deal roll onto SVR
Being proactive helps you avoid higher costs and rushed decisions.
Start Planning Early for a Smoother Remortgage
Remortgaging is not just a way to save money; it’s part of managing your home and finances responsibly.
Waiting until the last moment risks missing the best rates or falling onto a higher SVR.
Begin the remortgage process six months prior to your current deal’s expiration to stay ahead.