Last updated: September 2026. This guide covers remortgaging in the UK. It is educational content, not financial advice.
Most UK homeowners do not keep the same mortgage deal for the whole of their loan. Instead, they switch to a new deal every few years, usually when a fixed or tracker period ends. This is called remortgaging, and doing it at the right time can save you thousands of pounds.
With average fixed rates rising again in 2026 and many borrowers coming off cheap deals taken out in 2021 or 2022, understanding how remortgaging works has never been more important. In this guide we explain what remortgaging is, when to do it, what it costs and how to do it step by step, including a simple timeline you can follow so you never end up paying more than you need to.
What Is Remortgaging?
Remortgaging means replacing your current mortgage with a new deal, without moving home. There are two main ways to do it:
- Remortgage with a new lender. You apply to a different lender, which pays off your existing mortgage.
- Product transfer with your current lender. You switch to a new deal with the lender you already have.
Both options give you a new interest rate and terms. The difference is mainly in the process, the checks involved and the range of deals available.
| Feature | Remortgage with a new lender | Product transfer |
|---|---|---|
| Choice of deals | Whole market | Your current lender only |
| Affordability and credit checks | Full checks | Usually limited or none |
| Property valuation | Usually required | Usually not required |
| Legal work | Required (often free on remortgage deals) | Not usually required |
| Speed | Typically four to eight weeks | Often a few days |
| Borrowing more | Possible, subject to checks | Possible, but may require checks |
Why Remortgage?
1. Avoid your lender’s standard variable rate
When a fixed or tracker deal ends, your mortgage usually moves to the lender’s standard variable rate (SVR). According to Moneyfacts, the average SVR was 7.13% in mid September 2026, compared with an average two year fix of 5.73% and five year fix of 5.78%. Staying on the SVR can add hundreds of pounds a month.
2. Get a better rate
If your home has increased in value or you have paid down your balance, your loan to value (LTV) may have fallen, which can unlock cheaper deals.
3. Switch between fixed and tracker
You may want the certainty of a fixed rate after a tracker, or the flexibility of a tracker after a fix. Our guide to the best mortgage lenders in the UK can help you compare who offers what.
4. Release equity
You can borrow more against your home to fund home improvements or other large costs. This increases your debt and is secured on your home, so borrow carefully.
5. Change your term or repayment type
You can shorten your term to become mortgage free sooner, or extend it to lower your monthly payments if your budget is under pressure.
6. Overpay or add flexibility
Some borrowers remortgage to a deal with better overpayment allowances or an offset facility.
When Should You Remortgage?
When your current deal ends
This is the most common time. Most lenders let you secure a new deal up to six months before your current one ends. Under the Mortgage Charter, signed by most major UK lenders, customers can lock in a new deal in advance and, in many cases, switch to a better deal with the same lender if rates fall before the new one starts.
When your LTV has dropped
If your home has gone up in value or you have paid off a significant amount, you may qualify for a lower LTV band and a cheaper rate.
Before an early repayment charge would apply
If you are still in a fixed deal, leaving early usually means paying an early repayment charge (ERC), often 1% to 5% of the balance. Only remortgage mid deal if the savings clearly outweigh the charge.
When your circumstances change
A pay rise, an improved credit record or a change in your plans can all be good reasons to review your mortgage.
What Happens If You Do Nothing?
Let’s look at a borrower with £200,000 left to pay over 20 years, whose five year fix at 2.0% is ending:
| Scenario | Rate | Monthly payment |
|---|---|---|
| Old fixed deal | 2.00% | £1,012 |
| New average 2 year fix | 5.73% | £1,402 |
| New average 5 year fix | 5.78% | £1,408 |
| Lender’s average SVR | 7.13% | £1,566 |
Illustration only, using Moneyfacts averages from 15 September 2026.
Even with a new fixed rate, this borrower faces a rise of almost £400 a month. But doing nothing and drifting onto the SVR would cost around £160 a month more than taking a new five year fix, or roughly £1,900 a year. Planning ahead is essential.
As Moneyfacts noted in September 2026, the pressure is particularly heavy for borrowers whose deals were fixed at very low rates and who must now refinance at today’s higher levels.
The Costs of Remortgaging
Remortgaging is not always free. Check these costs before you commit:
| Cost | What it is | Typical range |
|---|---|---|
| Early repayment charge | Penalty for leaving a deal early | Often 1% to 5% of the balance |
| Arrangement or product fee | Fee for a new deal | From nothing to £1,000 or more |
| Exit fee | Admin fee from your old lender when you leave | Usually a modest fixed amount |
| Valuation fee | Cost of valuing your home | Often free on remortgage deals |
| Legal fees | Conveyancing to switch lenders | Often free on remortgage deals |
| Broker fee | Charged by some brokers | Many brokers are free |
A deal with a low rate but a large fee is not always the cheapest, especially on a smaller mortgage. Compare the total cost over the deal period.
Example: Is it worth paying an ERC?
Suppose you have a £200,000 balance and a 2% ERC for leaving your fixed deal a year early. That charge would be £4,000. If switching would save you £150 a month, it would take more than two years to recover the cost, longer than the time left on your deal. In this case, it would usually be better to wait.
How to Remortgage: Step by Step
1. Check your current mortgage
Find your outstanding balance, current rate, end date and any early repayment charges. Your annual mortgage statement or online account will have these details.
2. Estimate your home’s value and LTV
Look at recent sold prices for similar homes nearby. Divide your balance by your estimated value to work out your LTV.
3. Review your finances
Check your credit reports, register on the electoral roll and avoid new credit applications. If you are applying to a new lender, you will face affordability checks.
4. Compare your options
Get your current lender’s product transfer offer, then compare it with deals from other lenders. A whole of market broker can help.
5. Apply
For a product transfer, you can often accept online in minutes. For a new lender, you will submit an application with documents such as payslips, bank statements and ID.
6. Valuation and legal work
A new lender will usually value your home and appoint a conveyancer to handle the switch, often at no cost to you.
7. Receive your offer and complete
Once approved, you receive a mortgage offer. On completion, your new lender pays off your old mortgage and your new deal begins.
A Simple Remortgaging Timeline
| When | What to do |
|---|---|
| 6 months before your deal ends | Check your balance, end date, ERCs and LTV. Start comparing deals. |
| 3 to 6 months before | Secure a new deal, either a product transfer or a remortgage with a new lender. |
| 2 to 3 months before | Complete your application, valuation and legal work if switching lenders. |
| 1 month before | Confirm your completion date so the new deal starts as the old one ends. |
| After completion | Update any direct debits and keep a note of your new deal’s end date. |
Setting a calendar reminder for six months before your next deal ends is one of the simplest ways to avoid ever paying the SVR.
Remortgaging in Different Situations
Remortgaging after a separation. If you want to remove a former partner from the mortgage, the remaining borrower will usually need to pass affordability checks on their own. This is often called a transfer of equity and may involve legal work.
Adding someone to your mortgage. Adding a partner can increase the income used for affordability, but both people become fully responsible for the debt.
Interest only borrowers. If you have an interest only mortgage, lenders will want to see a credible plan to repay the capital at the end of the term. Some borrowers remortgage onto a repayment or part and part deal.
Buy to let landlords. Buy to let remortgages are assessed mainly on rental income, with lenders applying their own stress tests. Rates and fees are usually higher than for residential mortgages.
Self employed borrowers. Expect to provide two years of accounts or tax calculations. A product transfer can be simpler if your income has fallen or become less predictable.
Remortgaging and the Mortgage Charter
Most large UK lenders have signed the Mortgage Charter, which offers extra support. Depending on your lender, it may allow you to:
- Lock in a new deal up to six months before your current deal ends.
- Switch to a better like for like deal with the same lender before your new one starts, if rates fall.
- Temporarily switch to interest only payments or extend your term to reduce payments, with the option to switch back, without a new affordability check or impact on your credit score.
If you are worried about affording your new payments, contact your lender early.
Common Remortgaging Mistakes
- Leaving it too late and drifting onto the SVR.
- Accepting your lender’s first offer without comparing the market.
- Ignoring fees and ERCs when comparing deals.
- Extending your term without thinking. It lowers payments but increases total interest.
- Borrowing more than you need when releasing equity.
- Applying for new credit just before remortgaging.
If You Are Struggling With Payments
A big rise in payments can be stressful. If you are worried:
- Talk to your lender early. Options may include a longer term, a temporary switch to interest only or a payment plan.
- Get free debt advice from services such as MoneyHelper, StepChange or Citizens Advice.
- Avoid unregulated lenders or schemes that promise to solve mortgage problems for a fee.
Frequently Asked Questions
How long does remortgaging take?
A product transfer can take a few days. Remortgaging with a new lender usually takes four to eight weeks, which is why starting early matters.
Can I remortgage with bad credit?
It may be harder, but product transfers usually do not require a new credit check. Specialist lenders may also help, although rates are usually higher.
Does remortgaging affect my credit score?
Applying to a new lender involves a hard credit search, which may cause a small, temporary dip. Product transfers usually do not.
Can I remortgage to release equity?
Yes, subject to affordability checks and the lender’s LTV limits. Think carefully, as you are increasing the debt secured on your home.
What documents do I need to remortgage?
For a new lender, you will usually need photo ID, proof of address, your latest payslips or accounts, recent bank statements and your current mortgage statement. A product transfer normally needs much less.
Can I remortgage before my deal ends?
Yes, but you will usually pay an early repayment charge if you leave during the deal period. Many lenders let you lock in a new rate up to six months ahead, with the new deal starting when your current one ends, so there is no penalty.
Is it better to remortgage or do a product transfer?
It depends. A product transfer is quick and simple, while remortgaging with a new lender gives you access to the whole market. Compare both before deciding.
The Bottom Line
Remortgaging lets you switch to a new deal when your current one ends, helping you avoid the lender’s SVR, which averaged 7.13% in September 2026. Start looking around six months before your deal expires, compare your current lender’s offer with the wider market, and weigh fees and early repayment charges carefully.
With rates rising and many cheap fixed deals ending, planning ahead can save you a significant amount of money. Once your new deal is in place, note its end date and set a reminder for six months beforehand, so you are ready to review your options again next time. If you are unsure, an FCA authorised mortgage broker can help you find the right deal for your situation.
Disclaimer: This article is for general educational purposes only and does not constitute financial advice. Rates are based on Moneyfacts data from September 2026 and are not offers of credit. Fees and early repayment charges vary by lender. Your home may be repossessed if you do not keep up repayments on your mortgage.