Remortgaging Guide UK

How to switch your mortgage and potentially reduce your monthly payments.

What Is Remortgaging?

Remortgaging means switching your existing mortgage to a new deal — either with your current lender or a new lender. Homeowners typically remortgage when their fixed-rate deal ends.

If you're still early in your property journey, it may help to read our Buying Guide to understand how mortgages fit into the wider process.

Why Do People Remortgage?

  • To secure a better interest rate
  • To reduce monthly payments
  • To switch from variable to fixed rate
  • To release equity from property
  • To consolidate debt
Many homeowners can save significant money by switching deals before moving onto a lender’s standard variable rate (SVR).

When Is the Best Time to Remortgage?

Typically:

  • 3–6 months before your current deal ends
  • When property value increases
  • When interest rates fall

How the Remortgaging Process Works

  1. Check your current mortgage terms
  2. Compare deals
  3. Apply for new mortgage
  4. Property valuation
  5. Legal transfer
  6. New mortgage begins

The legal side is handled through conveyancing — see our Conveyancing Guide for full details.

Remortgage Costs

  • Arrangement fee
  • Valuation fee
  • Legal fees
  • Early repayment charges (if applicable)

Some lenders offer fee-free remortgage packages.

What Is Equity Release?

If your property has increased in value, you may be able to borrow additional funds against it. This is known as releasing equity.

Common Uses:

  • Home improvements
  • Debt consolidation
  • Investing in another property

If you are considering investing, read our Buy-to-Let Guide to understand rental property opportunities.

How Property Value Affects Remortgaging

The lower your Loan-to-Value (LTV) ratio, the better the rates available.

Example:

  • Home value: £300,000
  • Mortgage remaining: £150,000
  • LTV = 50%

Remortgaging for Buy-to-Let

  • Based on rental income
  • Higher interest rates
  • Different affordability calculations

Risks to Consider

  • Interest rate changes
  • Fees outweigh savings
  • Credit score impact
  • Property value decline

Fixed vs Variable When Remortgaging

Fixed Rate

  • Predictable payments
  • Protection from rate increases

Variable Rate

  • Payments can rise or fall
  • More flexibility

Should You Use a Mortgage Broker?

A broker can access multiple lenders and help find suitable deals, especially for complex cases.

Final Thoughts

Remortgaging can reduce costs or unlock funds, but timing and careful comparison are key. Always calculate total fees before switching.

Want to know your current property value before remortgaging? Get a free valuation today.

Need Professional Advice?

Speak with local property experts today.

Request Free Valuation