If you own a home with a mortgage, chances are you’ll face the question at some point: Should I remortgage? Done right, it can save you thousands of pounds, reduce your monthly outgoings, or free up money for other goals. Done wrong—or ignored altogether—and you could end up on a costly standard variable rate (SVR).

Here’s my deep-dive guide to remortgage advice: how it works, when it’s worth it, and the traps to avoid.

What Is a Remortgage?

In simple terms, a remortgage is when you switch your existing mortgage to a new deal. That might be:

• With your current lender (called a product transfer), or
• With a new lender (a full remortgage).

The main aim is to save money once your current fixed or tracker deal ends. However, it can also be about raising additional funds (e.g., for home improvements, debt consolidation, or buying another property).

Why Remortgaging Matters

If you do nothing when your deal ends, you’ll roll onto your lender’s standard variable rate. That’s often 3–6% higher than a competitive fixed or tracker deal. On a £200,000 mortgage, that could mean paying £250–£400 more every month—money you don’t need to waste.

Think of remortgaging like switching your energy provider, but with bigger stakes.

When Should You Remortgage?

1. When Your Current Deal Ends

The golden rule: start looking around 6 months before your deal finishes. Most lenders let you secure a new rate in advance, so you can line it up to start as soon as your current one ends.

2. If You’re on a Standard Variable Rate (SVR)

If you’ve already slipped onto an SVR, act fast. Unless there’s a particular reason (like you plan to sell soon), there’s rarely any benefit to sitting on one.

3. When Rates Drop

If you’re locked into a deal with a high rate but interest rates have since fallen, it may be worth breaking out early. However, weigh this against early repayment charges (ERCs).

4. To Release Equity

If your property’s value has risen, you might be able to borrow more at a competitive rate—applicable for extensions, big renovations, or even helping kids onto the property ladder.

5. Debt Consolidation

Rolling expensive credit cards or loans into your mortgage can lower your monthly outgoings. But beware: you’re spreading short-term debt over a much longer term, which can cost more overall.

How to Remortgage: Step by Step

Step 1: Check Your Current Deal

• Look at your end date.
• Note any early repayment charges.
• See if there’s a follow-on rate (often the SVR).

Step 2: Work Out Your Loan-to-Value (LTV)

This is your mortgage balance compared with your property’s value. For example:

• £150,000 mortgage on a £300,000 home = 50% LTV.

The lower your LTV, the better the rates you’ll be offered.

Step 3: Decide What You Want

• Lower monthly payments?
• Shorter mortgage term?
• Extra borrowing for projects?

Step 4: Shop Around (or Use a Broker)

• Comparison sites can give a snapshot but can.
• Independent mortgage brokers often have access to exclusive deals and can match you with lenders who suit your circumstances.

Step 5: Apply

The process is similar to applying for your first mortgage: you’ll need payslips, bank statements, ID, and details of debts and expenses.

Step 6: Legal Work

If you switch lenders, a solicitor or conveyancer will handle the legal paperwork. Many lenders offer free legals as part of the deal.

What Type of Remortgage Deal Should You Choose?

Fixed-Rate Mortgages

• Good for stability—your payments stay the same for 2, 3, 5, or even 10 years.
• Best if you like certainty, or if rates are predicted to rise.

Tracker Mortgages

• Linked to the Bank of England base rate (e.g., +1%).
• Good if rates are steady or falling, but your payments can go up as well as down.

Discount or Variable Deals

• Cheaper upfront, but unpredictable as they’re linked to your lender’s SVR.
• Usually best avoided unless you’re prepared for rate changes.

Common Pitfalls to Avoid

• Early Repayment Charges (ERCs)

Leaving your deal early can mean paying thousands. Always check if it’s worth it before jumping ship.

• Not Budgeting for Fees

Arrangement fees, valuation fees, legal costs—these can easily add £1,000–£2,000. Factor them in when comparing deals.

• Focusing Only on the Rate

A low rate with a massive fee may not be cheaper than a slightly higher rate with low or no fees. Always compare the total cost.

• Extending the Term Without Realising

Lower monthly payments might tempt you, but stretching a 20-year mortgage back to 30 years means you’ll pay much more in interest overall.

• Assuming Loyalty Pays

It doesn’t. Your current lender won’t reward you for staying—shop around.

Special Cases: Who Needs Extra Care When Remortgaging?

Self-Employed Borrowers

Lenders will want 2–3 years of accounts or tax returns. Having everything up to date helps.

People With Credit Issues

Missed payments or defaults don’t mean you can’t remortgage, but your options may be limited. Specialist lenders exist, though rates may be higher.

High-Net-Worth Individuals

If your income is complex (overseas, bonuses, dividends, or trusts), use a broker who understands the niche market of private banks and specialist lenders.

Interest-Only Mortgages

You’ll need a clear repayment plan—sale of property, investments, or other assets. Lenders are stricter here than they used to be.

Key Tips to Get the Best Remortgage Deal

• Start early: line up your next deal 3–6 months before your current one ends.
• Improve your credit score: pay down debts, register to vote, and avoid missed payments.
• Don’t overborrow unless necessary. It’s tempting to release equity, but it keeps you in debt longer.
• Use a mortgage broker, especially if your situation is anything but straightforward.
• Check the total cost, not just the rate.

Should You Remortgage Now or Wait?

This depends on two main factors:

• Where interest rates are headed

If rates are falling, wait. But predicting the market is like forecasting the weather—get it wrong, and you could lose out.

• Your personal situation

If your deal ends soon, or you’re already on an SVR, waiting rarely makes sense. Locking in a deal (with no fee or the option to switch if rates improve) can give peace of mind.

Quick FAQs on Remortgaging

Q: How long does a remortgage take?

Typically 4–8 weeks, quicker if staying with your current lender.

Q: Do I need a solicitor?

Yes, if you switch lenders. Many lenders cover the cost.

Q: Can I remortgage with bad credit?

Yes, but you’ll have fewer options and may pay a higher rate.

Q: What’s the difference between a remortgage and a product transfer?

A remortgage is switching lenders; a product transfer is staying with your current one but moving to a new deal.

The Bottom Line

Remortgaging isn’t something to fear—it’s an opportunity. For many households, it’s one of the most significant chances to save serious money each month.

• Don’t sleepwalk onto your lender’s standard variable rate.
• Start shopping around 6 months before your deal ends.
• Get advice if your situation is complex or you’re unsure.

Appropriately handled, remortgaging can be the difference between financial strain and financial breathing space.

Final word of advice: Think of remortgaging as a financial health check. Just as you’d shop around for car insurance every year, give your mortgage the same attention—it’s the single biggest financial commitment most of us will ever have. With the right advice and preparation, that’s where The Mortgage Blog can help turn your dreams into reality. Contact us on 0333 335 6595 or message us to explore your options and get personalised advice tailored to your unique situation.