Quick Answer
Remortgaging is the process of switching your existing mortgage to a new deal, either with your current lender or a new one. This is often done to get a better interest rate, reduce monthly payments, or release equity from your home.
What Is Remortgaging?
Remortgaging means replacing your current mortgage with a new one.
You can:
- Switch to a better deal with your current lender (product transfer)
- Move your mortgage to a different lender
Most people remortgage when their initial deal ends.
Why Do People Remortgage?
There are several common reasons:
1. Get a Better Interest Rate
When your fixed or introductory deal ends, your lender usually moves you to a higher standard variable rate.
Remortgaging can help you secure a lower rate.
2. Reduce Monthly Payments
A better rate or longer term can lower your monthly costs.
3. Release Equity
You can borrow more against your home to:
- Fund home improvements
- Consolidate debts
- Access cash
4. Change Mortgage Type
You may want to switch between:
- Fixed-rate
- Tracker
- Repayment or interest-only
See: Fixed vs Tracker Mortgage UK
When Should You Remortgage?
Most homeowners remortgage:
👉 3–6 months before their current deal ends
This helps you:
- Avoid higher rates
- Secure a new deal in advance
What Happens If You Don’t Remortgage?
If you do nothing, your lender may move you to a:
👉 Standard Variable Rate (SVR)
This is usually:
- Higher than fixed deals
- Less predictable
How Does Remortgaging Work?
The process is similar to applying for a new mortgage.
Steps:
- Review your current deal
- Compare new mortgage options
- Apply for a new mortgage
- Provide documents (income, bank statements)
- Lender completes checks
- New deal replaces old mortgage
What Costs Are Involved?
Remortgaging can involve fees, including:
- Arrangement fees
- Valuation fees
- Legal fees (sometimes included)
- Early repayment charges (if leaving early)
See: Mortgage Fees UK
Can You Remortgage Early?
Yes, but you may face:
👉 Early Repayment Charges (ERCs)
These can be:
- 1% to 5% of your remaining balance
Always check if switching early is worth it.
How Much Can You Borrow When Remortgaging?
This depends on:
- Your property value
- Your remaining mortgage balance
- Your income and affordability
You may be able to borrow more if your property has increased in value.
How Remortgaging Affects Your Finances
Remortgaging can:
- Reduce monthly payments
- Change your mortgage term
- Affect total interest paid
To understand the impact, use our
Mortgage & Cost Calculators UK (2026) tools.
Should You Stay with Your Current Lender?
This is called a product transfer.
Pros:
- Simpler process
- Fewer checks
- Faster
Cons:
- May not get the best deal available
Comparing the wider market can often save money.
What Do Lenders Check?
When you remortgage, lenders assess:
- Your income
- Your spending
- Your credit history
- Your property value
See: How Lenders Check Your Bank Statements UK
How to Get the Best Remortgage Deal
To improve your chances:
- Check your credit score
- Reduce debts
- Compare multiple lenders
- Consider using a broker
- Start early
Check Your Budget Before Remortgaging
Before switching, it’s important to understand your full financial position.
Use our tools to:
- Estimate new monthly payments
- Compare interest rates
- Combine mortgage and living costs
👉 See: Mortgage & Cost Calculators UK (2026)
Related Guides
- Mortgage Affordability Explained UK
- Fixed vs Tracker Mortgage UK
- Mortgage Overpayments Explained UK
- What Will Get You Declined for a Mortgage UK
Final Thoughts
Remortgaging is a key part of managing your mortgage over time.
By reviewing your options regularly and understanding how different deals affect your finances, you can reduce costs and keep your mortgage working in your favour.