mortgages

How to Remortgage: When It Makes Sense and How to Do It

How to Remortgage: When It Makes Sense and How to Do It

What Is Remortgaging?

Remortgaging means switching your existing mortgage to a new deal — either with your current lender or a different one. Millions of UK homeowners remortgage every year, typically to reduce monthly payments, access better interest rates, or release equity.

When Should You Remortgage?

The most common trigger is the end of a fixed-rate or tracker deal. When your introductory period ends, your lender usually moves you onto its Standard Variable Rate (SVR), which is almost always higher than deals available on the open market.

Other Reasons to Remortgage

  • Your property has increased in value — a lower LTV means cheaper rates
  • You want to consolidate debt
  • You need funds for home improvements
  • Your income has increased significantly

When Remortgaging Doesn't Make Sense

If you have a large early repayment charge (ERC) on your current deal, remortgaging early may cost more than staying put. ERCs typically range from 1% to 5% of your outstanding balance.

The Remortgaging Process Step by Step

Step 1: Check Your Current Deal

Find out when your current deal ends and what ERC applies. This information is on your annual mortgage statement.

Step 2: Get Your Current Property Value

Your LTV affects the rates available. Use Zoopla or Rightmove to estimate value, then calculate LTV: outstanding mortgage divided by property value.

Step 3: Compare Deals

Use a comparison site or a whole-of-market broker. Brokers have access to deals not available directly to consumers. The FCA requires all mortgage brokers to be authorised — check the FCA register before using any adviser.

Step 4: Apply

Submit your application with payslips, bank statements, and proof of identity. Halifax, Barclays, and Nationwide all offer online remortgage applications with decisions within days.

You'll need a solicitor to handle the transfer. Many lenders offer free legal work as part of their remortgage package.

How Long Does Remortgaging Take?

Allow four to eight weeks. Start the process three to six months before your current deal ends to avoid reverting to the SVR. MoneyHelper has a free remortgage checklist to help you prepare.

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