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 Reasons for a Remortgage
Remortgaging is one of the most effective ways to manage your mortgage, lower your monthly payments, or release funds for new goals. Homeowners across the UK remortgage for a variety of reasons, including securing better interest rates and financing home improvements. Understanding the main motivations can help you decide whether it’s the right time for you.
To Get a Better Interest Rate
The most common reason to remortgage is to secure a lower interest rate.
When your initial fixed or tracker deal ends, your lender usually moves you onto their standard variable rate (SVR), which is often higher. By remortgaging before or soon after this happens, you can switch to a more competitive rate and potentially save hundreds of pounds a year.
Example:
If your mortgage balance is £200,000 and your rate drops from 6% to 4.5%, that’s roughly £2,000 saved annually in interest.
To Fix Your Monthly Payments
Many homeowners remortgage to gain financial stability. A fixed-rate mortgage offers predictable monthly payments, making budgeting easier, especially during periods of rising interest rates.
Locking in a new fixed-rate deal can provide peace of mind if you expect your household costs to increase.
To Release Equity
If your property has risen in value or you’ve paid off a significant portion of your mortgage, you may be able to remortgage to release equity.
This extra cash can be used for home improvements, purchasing an investment property, or funding large expenses such as university fees or weddings. It’s essentially a way to access the value tied up in your home.
To Consolidate Debts
Some homeowners choose to remortgage to consolidate debts, rolling multiple high-interest debts (such as loans or credit cards) into one affordable mortgage payment.
While this can make repayments more manageable, it’s vital to seek professional advice. Extending short-term debts over a long mortgage term can mean paying more interest overall.
To Fund Home Improvements
Remortgaging can provide the funds for major renovations, extensions, or energy-efficiency upgrades.
Using your home’s equity can be a cost-effective alternative to personal loans, especially if it increases your property’s long-term value.
To Remove or Add a Name from the Mortgage
Life changes, such as marriage, separation, or inheritance, often require updating the names on a mortgage.
A remortgage provides an opportunity to add or remove a borrower, while also reviewing the deal to ensure it remains competitive and suitable for your circumstances.
To Switch Lenders or Access Better Flexibility
Some lenders offer more flexible terms, such as overpayment options, payment holidays, or offset facilities.
If your current lender doesn’t provide these benefits, remortgaging allows you to switch to one that better suits your lifestyle or long-term financial plans.
To Change the Mortgage Term
Remortgaging is also a chance to shorten or extend your mortgage term.
Reducing the term means you’ll pay off your loan sooner and save on interest overall. Extending it may lower your monthly payments if you need more breathing room in your budget.
To Move to a More Specialist Lender
If your circumstances have changed — for example, you’ve become self-employed or started letting your property — you may need a specialist mortgage lender.
Remortgaging allows you to switch to a lender that understands your new situation, ensuring you get advice and products tailored to your needs.
When to Review Your Mortgage
It’s wise to review your mortgage every two to five years or whenever your fixed deal is due to expire. Even if you’re happy with your current lender, comparing rates through a whole-of-market mortgage adviser could reveal better deals that save you money over the life of your loan.
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. The full loan must be repaid at the term end.
Each comes with different risks and benefits. Choose based on your budget and future plans.
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.
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FAQ: Remortgage Guide
| Question | Answer |
|---|---|
| What is a remortgage? | A remortgage is when you move your existing mortgage to a new lender or negotiate a new deal with your current lender, usually to save money or unlock equity from your property. |
| When should I consider remortgaging? | You should consider remortgaging when your current deal is ending, if you’re on a high standard variable rate, or if you want to borrow more for home improvements or debt consolidation. |
| How long does the remortgage process take? | On average, the remortgage process takes between four and eight weeks. Timescales depend on your lender, solicitor, and how quickly you can provide any required documents. |
| Can I remortgage before my fixed rate ends? | Yes, you can, but you may have to pay an early repayment charge. Speak to a qualified mortgage adviser to check if remortgaging early is still beneficial. |
| Do I need a solicitor to remortgage? | Most lenders require a solicitor or conveyancer to handle the legal work, but many remortgage deals include free legal services or cashback to cover this cost. |
| Can I remortgage to release equity? | Yes. If your home has increased in value or you’ve repaid a large part of your mortgage, you can remortgage to release some equity for home improvements, investment, or other major expenses. |
| What documents will I need for a remortgage? | You’ll typically need proof of income, bank statements, identification, and details of your existing mortgage. Lenders may also request a property valuation. |
| Will I need a credit check to remortgage? | Yes. Lenders will perform a credit check to assess your affordability and repayment history before offering a new mortgage deal. |
| Can I remortgage if I’m self-employed? | Yes. Self-employed borrowers can remortgage, but you’ll usually need to show at least two years of accounts or tax returns to prove your income. |
| What are the main costs of remortgaging? | Costs may include valuation fees, solicitor fees, early repayment charges, and product fees for the new deal. Some lenders offer fee-free remortgage packages to reduce these costs. |
| Can I remortgage with bad credit? | It’s possible. Some specialist lenders offer remortgage options for clients with missed payments or defaults. A mortgage adviser can help you explore these routes. |
| How do I find the best remortgage deal? | Compare rates across the market or use a whole-of-market mortgage adviser. They can find deals that match your financial goals and may have access to exclusive lender offers. |