If your current mortgage deal is coming to an end, or you feel like you could be on a better rate, remortgaging is worth understanding. It is one of the most effective ways homeowners can reduce their monthly outgoings or unlock the value built up in their property.
What is remortgaging?
Remortgaging means switching your existing mortgage to a new deal, either with your current lender or a different one. The new mortgage pays off the old one, and you begin repaying under the new terms. It does not involve moving home, it is purely a change to the financial arrangement on your existing property.
Why do people remortgage?
The most common reason is to get a better interest rate. Most mortgage deals have an initial fixed or discounted period, typically two to five years. When that ends, you usually move onto your lender’s standard variable rate, which is often significantly higher. Remortgaging to a new deal before that happens can save a considerable amount each month.
Other common reasons include releasing equity, where the value of your home has increased and you want to access some of that as cash, perhaps for home improvements or to consolidate other debts. Some people remortgage to switch from a variable rate to a fixed rate for greater payment certainty, or to shorten their mortgage term if their income has increased.
Is remortgaging always the right move?
Not always. If you are in a fixed-rate deal, leaving it early will usually trigger an early repayment charge. It is important to weigh the cost of that charge against the potential savings from switching. In some cases, it makes sense to wait until the fixed period ends before remortgaging.
It is also worth checking whether your current lender will offer you a new deal, known as a product transfer, as this can sometimes be arranged without the full legal and valuation costs that come with switching lenders.
What does the process involve?
The process is similar in many ways to applying for a mortgage in the first place. You or your adviser will research available deals, compare rates and terms, and submit an application to the chosen lender. The lender will carry out a credit check and may require a valuation of your property. A solicitor handles the legal transfer, and once complete your new mortgage replaces the old one.
The whole process typically takes four to eight weeks, so it is worth starting to look at your options around three to six months before your current deal ends.
Getting advice
With hundreds of mortgage products available across dozens of lenders, comparing the market properly takes time and expertise. A mortgage adviser can identify the most suitable deals for your circumstances, handle much of the paperwork, and make sure you are not paying more than you need to.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Approved by In Partnership FRN 192638 June 2026
