Remortgaging is one of the most effective ways to save money on your mortgage, release equity from your home, or restructure your borrowing. Yet many homeowners stay on their lender’s expensive standard variable rate simply because the process feels daunting. In this guide we explain everything you need to know about remortgaging in the UK — what it is, when it makes sense, what it costs, and how to find the best deal for your circumstances.
What Does Remortgaging Mean?
Remortgaging means switching your existing mortgage to a new deal, either with your current lender (known as a product transfer) or with a different lender altogether. Your home stays the same, your outstanding balance stays the same (unless you choose to borrow more), but the terms of the loan change — typically to a lower interest rate, different repayment term, or a different type of product.
It is important to understand that remortgaging is not the same as moving home. You are not buying a new property. You are simply replacing one mortgage agreement with another on the property you already own. The process is generally quicker and simpler than taking out a mortgage for the first time, and in many cases a solicitor or conveyancer will handle the legal work at no cost to you because the new lender covers the fees.
Most homeowners remortgage when their initial deal (usually a fixed rate or tracker) comes to an end. At that point, your lender will typically move you onto their standard variable rate (SVR), which is almost always significantly higher. Switching to a new deal before or when this happens can save you hundreds of pounds a month.
On a £200,000 mortgage, moving from the average UK SVR of 7.13% (Moneyfacts, April 2026) to a competitive fixed rate of 4.25% could save you around £335 per month — over £4,000 a year. With approximately 1.8 million fixed-rate mortgages scheduled to mature during 2026 (UK Finance), this is the exit point most UK homeowners will face this year.
Why Should You Remortgage?
The most common reason to remortgage is to save money by securing a lower interest rate, but you might also remortgage to release equity, consolidate debts, or change your mortgage term. The right reason for you will depend on your financial goals and circumstances.
Can You Get a Better Interest Rate by Remortgaging?
Yes, and this is by far the most common reason to remortgage. When your initial deal expires and you move onto your lender’s SVR, you could be paying 1–3 percentage points more than necessary. Even a small rate reduction on a large mortgage balance can translate into significant monthly savings. For example, on a £200,000 mortgage, reducing your rate by just 1% could save you around £160 per month.
Can You Release Equity by Remortgaging?
Yes, if your property has increased in value or you have paid down a significant portion of your mortgage, you can borrow additional funds by remortgaging to a higher amount. This is commonly used to fund home improvements, consolidate debts, or help family members with a deposit. Read our detailed guide on remortgaging to release equity.
Can You Change Your Mortgage Term When You Remortgage?
Yes, remortgaging gives you an opportunity to shorten or extend the term of your mortgage. Shortening it means higher monthly payments but less interest paid overall. Extending it reduces monthly payments, which can be helpful if your circumstances have changed and you need more breathing room in your budget.
Can You Consolidate Debts by Remortgaging?
Yes, some homeowners remortgage to consolidate unsecured debts such as credit cards, personal loans, or overdrafts into their mortgage. While this can reduce your total monthly outgoings, it is important to consider that you would be securing previously unsecured debts against your home, and spreading them over a longer term could mean paying more in total interest.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
Can You Switch Mortgage Type When You Remortgage?
Yes, you can move from a variable or tracker rate to a fixed rate for payment certainty, or vice versa if you believe rates are likely to fall. Remortgaging gives you the flexibility to choose a product that matches your current risk appetite and financial plans.
When Should You Remortgage?
You should start looking at new deals three to six months before your current fixed or tracker rate expires, to avoid being moved onto your lender’s expensive standard variable rate. Most lenders allow you to lock in a rate up to six months in advance, which means you can secure a competitive deal well before you need it.
Set a reminder for six months before your current deal ends. Most lenders let you lock in a new rate that far in advance, so if rates rise before your deal expires, you are already protected. If rates fall, some lenders will let you switch to the lower rate before completion.
The key trigger is the end of your initial rate period. Whether you are on a two-year fix, a three-year fix, or a five-year fix, you will move onto your lender’s SVR when that period ends. The SVR is almost always higher — sometimes substantially so — and it can change at any time at the lender’s discretion.
There are also situations where remortgaging during your current deal may make sense, even if it means paying an early repayment charge (ERC). This could be the case if interest rates have fallen significantly, or if your property has risen in value enough to move you into a lower LTV band.
For a more detailed look at timing, read our guide on when you should remortgage.
How Does the Remortgage Process Work?
The remortgage process typically takes four to eight weeks from application to completion and is more straightforward than buying a home for the first time. Here is what it generally involves, step by step:
- 01
Review your current mortgage
Check when your deal ends, whether you have any early repayment charges, and your current balance and remaining term. Your latest mortgage statement will have this information.
- 02
Research the market
Compare deals from different lenders to understand what rates are available. A mortgage broker can search the whole market and identify the most suitable options for your circumstances.
- 03
Get a Decision in Principle
The lender carries out a soft credit check and provides an indication of whether they would lend to you. This does not commit you to anything and does not affect your credit score.
- 04
Submit your full application
Provide proof of income, bank statements, details of your existing mortgage, and information about your outgoings. The lender runs a full credit check and affordability assessment.
- 05
Property valuation
The new lender values your property to confirm it provides adequate security. This may be a physical visit or a desktop valuation. Many remortgage deals include a free valuation.
- 06
Legal work
A solicitor or conveyancer handles the transfer from your old lender to the new one. Many remortgage deals include free legal work, so this often costs you nothing.
- 07
Completion
The new lender pays off your old mortgage and your new deal begins. The whole process typically takes four to eight weeks from application to completion.
How Much Does It Cost to Remortgage?
Remortgaging can cost between £0 and several thousand pounds, depending on whether you face early repayment charges and whether your new deal includes free valuation and legal work. Understanding these costs upfront will help you calculate whether switching makes financial sense.
- Early repayment charges (ERCs):If you leave your current mortgage before the deal period ends, your lender may charge a penalty, typically 1–5% of the outstanding balance. This is often the biggest cost to consider.
- Arrangement fee:The new lender may charge a product fee for setting up the mortgage, typically £500 to £2,000. Some lenders offer fee-free deals, though these may carry slightly higher interest rates.
- Valuation fee:The new lender needs to value your property. Many remortgage deals include a free valuation, but where one is charged, it typically costs £150 to £500 depending on the property value.
- Legal fees:A solicitor or conveyancer handles the legal transfer. Many remortgage deals include free legal work, which can save you £300 to £1,000.
- Exit fee:Your current lender may charge a small administration fee when you leave, sometimes called a deeds release fee, typically around £50 to £300.
Early repayment charges can be the biggest cost of switching. On a £250,000 mortgage with a 3% ERC, the penalty would be £7,500. Always calculate whether the savings from a lower rate outweigh the ERC before committing to a switch.
For a comprehensive breakdown, read our guide to remortgage costs and fees.
How Does Remortgaging to Release Equity Work?
You release equity by remortgaging for more than your current balance and receiving the difference as a lump sum — most lenders allow you to borrow up to 85–90% of your property’s value. Equity is the difference between the current value of your property and the amount you still owe on your mortgage. If your home has increased in value, or you have been paying down your mortgage over time, you may have built up a significant amount of equity that you can access.
When you remortgage to release equity, you take out a new mortgage for more than your current balance. The difference is paid to you as a lump sum, which you can use for a variety of purposes, including home improvements, helping a family member with a deposit, or consolidating debts.
However, releasing equity increases the size of your mortgage, which means higher monthly payments and more interest paid over the life of the loan. It also increases your loan-to-value (LTV) ratio, which could affect the interest rate you are offered. Most lenders will not allow you to borrow more than 85–90% of your property’s value.
For a detailed look at how this works, read our guide to remortgaging to release equity.
| Feature | Remortgage (new lender) | Product transfer (same lender) |
|---|---|---|
| Rate range | Whole-of-market — widest choice | Limited to your current lender’s products |
| Speed | 4–8 weeks typically | Can complete in days |
| Legal work | Required (often free with deal) | Not usually required |
| Valuation | Required (often free with deal) | Not usually required |
| Credit check | Full application and credit check | Often lighter checks or none |
| Best for | Finding the lowest rate across the market | Quick switch, credit issues, or simplicity |
Can You Remortgage with Bad Credit?
Yes, you can remortgage with bad credit, although your options will be more limited and rates are likely to be higher. Several specialist lenders cater to borrowers with adverse credit, and a product transfer with your existing lender may also be an option since it often involves less stringent checks than a brand new application.
The key factors that lenders consider include the type and severity of your credit issues, how recent they are, how much equity you have in your property, and your current affordability. Even with CCJs, defaults, or missed payments on your file, there may be lenders willing to offer you a remortgage, although the rates are likely to be higher than those available to borrowers with clean credit.
If a remortgage is not possible due to your credit situation, a second charge loan may be an alternative worth considering, as second charge lenders are often more flexible on credit history.
Read our full guide on remortgaging with bad credit for more information.
Should You Remortgage or Get a Second Charge Loan?
A remortgage is usually better if your current deal is ending and you want the lowest rate across the whole market, while a second charge loan is often the better choice if you have a competitive rate you do not want to lose or would face large early repayment charges. Both options can help you raise additional funds — the right choice depends on your circumstances.
When Is Remortgaging the Better Option?
- Your current deal is ending or you are on the SVR
- You can get a lower rate than your current mortgage
- You have no early repayment charges
- You want everything in a single monthly payment
- You have good credit and strong income
When Is a Second Charge Loan the Better Option?
- You have a competitive rate you do not want to lose
- You would face large ERCs by remortgaging
- Your circumstances have changed and you may not qualify for a new first mortgage at a good rate
- You need funds quickly
- You want to keep borrowing separate from your main mortgage
For a full comparison, read our guide to second charge loans vs remortgaging.
Whether you are looking to save on your monthly payments, release equity, or simply find a better deal, a specialist mortgage broker can compare options from across the market and recommend the most suitable route for your situation. Visit our remortgage service page or use our mortgage calculator to get started.
- Start looking for a new deal 3–6 months before your current rate expires — most lenders let you lock in early.
- Dropping off a fixed rate onto your lender’s SVR can cost you hundreds of pounds a month in unnecessary interest.
- Many remortgage deals include free valuation and free legal work, keeping switching costs low.
- Early repayment charges can be significant — always calculate the net saving before switching mid-deal.
- A product transfer with your current lender can be a quick, low-hassle alternative if rates are competitive.
Your home may be repossessed if you do not keep up repayments on your mortgage. Think carefully before securing other debts against your home.