What is Remortgaging?
Remortgaging means switching your existing mortgage — either to a new deal with your current lender (a product transfer) or to a completely different lender. You are not moving home; you are simply changing the mortgage terms on the property you already own.
The goal is usually to secure a lower interest rate, release equity, change your mortgage term, or simply avoid rolling onto your lender's expensive Standard Variable Rate (SVR) when your current deal expires.
Sign 1: Your Fixed Rate is Ending Soon
The most common reason to remortgage is that your current fixed rate deal is coming to an end. When your fixed period expires, your mortgage automatically switches to your lender's SVR — typically 1.5–3% higher than competitive market rates.
Start comparing deals 3–6 months before your current deal expires. Many lenders allow you to lock in a new rate 3–6 months in advance, meaning you can switch the moment your current deal ends with no gap on the SVR.
Use our remortgage calculator to estimate how much you could save by switching.
Sign 2: You're Already on the SVR
If you have already rolled onto your lender's Standard Variable Rate, you are likely paying a significantly higher rate than necessary. Compare the current SVR to the best available 2 or 5-year fixed rates — the difference could easily be 1.5–2%, representing hundreds of pounds per month on an average mortgage.
Unless you are planning to sell or pay off the mortgage within a few months, remortgaging away from the SVR almost always makes financial sense.
Sign 3: Your Property Has Increased in Value
If your home has risen in value since you took out your mortgage, your LTV has improved — even if your outstanding balance has barely changed. A lower LTV unlocks better interest rate bands.
For example, if you originally bought at 85% LTV and your property has risen enough to bring your LTV below 80% or 75%, you could access significantly cheaper rates by remortgaging.
Get an up-to-date valuation (your new lender will arrange this as part of the remortgage process) and check what rates are available at your new LTV.
Sign 4: Your Circumstances Have Changed
Other life changes that may trigger a remortgage review:
Income increase: A higher income may mean you can afford to shorten your mortgage term, saving significant interest over time.
Debt consolidation: Some homeowners remortgage to pay off high-interest debts by adding them to the mortgage. This reduces monthly outgoings but increases total interest paid — take independent advice before doing this.
Home improvements: Releasing equity through a remortgage can fund a loft conversion, extension, or renovation that adds value to the property.
Separation: If you are separating from a partner, remortgaging may be needed to remove one name from the mortgage.
Costs to Consider
Remortgaging is not always free. Costs may include:
Early repayment charge (ERC): If you exit your current deal early, ERCs can be 1–5% of the outstanding balance. Always check your current mortgage terms.
Arrangement fee: New deals often carry arrangement fees of £999–£1,999. Some fee-free deals are available but usually at slightly higher rates.
Valuation fee: Your new lender may charge for a property valuation, though many offer free valuations as an incentive.
Legal fees: A remortgage involves some legal work. Many lenders offer free legal services as part of the deal.
Run the numbers: weigh the total cost of switching against the monthly saving to ensure the remortgage makes financial sense.