Remortgaging Guide: When and How to Switch Your Mortgage

Last updated: May 2026 · 7 min read

Remortgaging means switching your existing mortgage to a new deal, either with your current lender (a product transfer) or with a new lender. Most people remortgage when their fixed rate ends to avoid moving onto the lender's expensive standard variable rate. Done right, it can save you hundreds of pounds per month.

When Should You Remortgage?

Start looking 3-6 months before your current deal ends. Most mortgage offers are valid for 6 months, so you can lock in a rate early without committing. Key reasons to remortgage: your fixed rate is ending, you want to borrow more (for home improvements or debt consolidation), your property has increased in value (moving to a lower LTV band), or you want to switch from interest-only to repayment.

Product Transfer vs New Lender

A product transfer is the simplest option — you stay with your current lender and move to a new deal. There is no legal work, no valuation and minimal paperwork. However, your current lender may not offer the best rate. Compare their offer against the wider market. A new lender will require a full application, valuation and legal work, but may offer a significantly better rate that more than covers these costs.

Costs of Remortgaging

Early repayment charge (ERC): if you leave your current deal before it ends, you may pay 1-5% of the outstanding balance. Check your mortgage terms. Arrangement fee: the new lender may charge 500 to 2,000 pounds for their mortgage product. You can usually add this to the loan, but you then pay interest on it. Valuation and legal fees: many lenders offer free valuation and free legal work on remortgages as an incentive.

How to Find the Best Deal

Use a whole-of-market mortgage broker who can search all lenders. Compare the total cost over the deal period, not just the headline rate. A lower rate with a 1,500 pound fee can cost more overall than a slightly higher rate with no fee, especially on smaller mortgages. Factor in any cashback offers, free valuations and legal work when comparing.

Can You Remortgage to Release Equity?

Yes. If your property has increased in value, you can borrow more than your current outstanding mortgage and receive the difference as cash. This is commonly used to fund home improvements, buy another property or consolidate debts. Be aware that you are increasing your total debt and monthly payments. The additional borrowing is also subject to stamp duty if used to purchase another property — check using the stamp duty calculator.