How to Remortgage UK — Step by Step Guide
Your fixed rate is ending and your lender wants to move you onto their standard variable rate — typically 2–3% higher than the best deals. Remortgaging could save you hundreds per month. Here is exactly how to do it.
When Should You Remortgage?
Start looking 3–6 months before your current deal ends. Mortgage offers typically last 6 months, so you can lock in a rate early without committing. The key trigger dates:
Your fix is ending
Never let yourself roll onto the SVR. On a £200,000 mortgage, the difference between a 4.5% fix and a 7% SVR is around £300 per month — £3,600 per year wasted.
Your property has increased in value
If your LTV has dropped below a key threshold (90%, 85%, 80%, 75%) you may qualify for better rates. Even mid-fix, it can be worth paying the early repayment charge if the savings are large enough.
You want to borrow more
Remortgaging lets you release equity for home improvements, debt consolidation, or other purposes. The additional borrowing is added to your mortgage at the new rate.
How Much Could You Save?
| Mortgage | SVR (7%) | Best fix (4.5%) | Monthly saving |
|---|---|---|---|
| £150,000 | £998 | £760 | £238 |
| £200,000 | £1,331 | £1,013 | £318 |
| £300,000 | £1,997 | £1,520 | £477 |
| £400,000 | £2,663 | £2,027 | £636 |
Based on 25-year repayment mortgage. Rates are illustrative for 2026.
The Remortgage Process: 6 Steps
- Check your current deal— Find your deal end date and any early repayment charges (ERC). The ERC is usually 1–5% of the outstanding balance and decreases each year of the fix.
- Get an Agreement in Principle— This confirms what a new lender would offer you. It is a soft credit check that does not affect your score.
- Compare deals (or use a broker)— A whole-of-market broker compares hundreds of products including exclusive deals not available direct. Most are fee-free, paid by commission from the lender.
- Apply for the new mortgage— Submit payslips, bank statements, and proof of ID. The new lender arranges a valuation of your property (often free).
- Legal transfer— A solicitor handles the switch. Many lender deals include free legal work. If not, budget £300 – £500.
- New mortgage starts— Timed to begin when your old deal ends. Your old lender is paid off automatically.
The whole process takes 4–8 weeks, which is why you should start 3–6 months early.
Costs Involved
| Fee | Typical cost | Notes |
|---|---|---|
| Arrangement fee | £0 – £2,000 | Can be added to the loan (but you pay interest on it) |
| Valuation | £0 – £300 | Often free with lender deals |
| Solicitor | £0 – £500 | Often free with lender deals |
| Early repayment charge | 1–5% of balance | Only if leaving current deal early |
| Broker fee | £0 – £500 | Many brokers are fee-free |
Always calculate the total cost of switching versus staying. A deal with a £999 fee and 4.2% rate might be cheaper overall than a fee-free deal at 4.8%.
Product Transfer vs Remortgage
A product transfermeans switching to a new deal with your existing lender. It is faster (no solicitor, no valuation) but the rates may not be the best on the market. Always compare your lender’s product transfer rates against the wider market before deciding.
A full remortgageto a new lender takes longer but often gets you a better rate, especially if your LTV has improved. If the saving is more than £50 per month, it is usually worth the extra effort.
Common Remortgage Mistakes
Leaving it too late and ending up on the SVR for months while you sort a new deal.
Only looking at the interest rate — check the total cost including fees over the deal period.
Extending the term unnecessarily. This reduces monthly payments but costs far more in total interest.
Not considering overpayment allowances. Most fixes allow 10% overpayment per year. If you might want to overpay, check this before choosing a product.
See what your new payments could look like with our free Mortgage Calculator on CalcPad.
Last updated May 2026. This guide is for general information only. Always seek personalised advice from a qualified mortgage broker.