Everything you need to know about remortgaging

Remortgaging is a common option for homeowners who want to review their mortgage without selling their property. It can be used to secure a new deal, change the way you repay, or access additional borrowing—depending on your circumstances.

This guide covers what remortgaging means, the reasons people remortgage, the key costs and considerations, and the typical steps involved.

What is remortgaging?

Remortgaging is when you replace your existing mortgage with a new mortgage—either with your current lender or a different one—while keeping the same property.

In practice, remortgaging usually involves:

• applying for a new mortgage product
• the new mortgage paying off the existing mortgage balance
• continuing your borrowing under the new terms and conditions

You may hear remortgaging described as “switching” your mortgage deal. It’s not the same as moving house, although the process can feel similar because the lender will assess affordability and the property.

Why do homeowners remortgage?

There are several common triggers for remortgaging. The most suitable reason depends on what you want to achieve and how your current mortgage is performing.

1) Your fixed or discounted period is coming to an end

Many mortgages start with a fixed rate or a discounted rate for a set time. When that period ends, the mortgage may move onto a different rate (often less favourable).

Remortgaging around this point can help you avoid being automatically placed on a rate you didn’t choose.

2) You want to reduce your monthly payments or overall cost

If you can secure a more competitive deal, remortgaging may reduce what you pay. However, the best outcome is based on the total cost over time—not just the headline interest rate.

3) You want to change the structure of your mortgage

Some homeowners remortgage to better match their plans, for example:

• switching between repayment and interest-only (where available)
• choosing a fixed rate for payment stability
• moving to a different type of interest arrangement

4) You want to release equity

If your property value has increased or you’ve built up equity, remortgaging may allow you to borrow additional funds. This could be used for home improvements, consolidating other debts, or other major expenses.

Whether this is sensible depends on affordability, the costs of the new borrowing, and the risk of increasing your mortgage balance.

5) You want to switch lenders

Even if your current lender offers a retention deal, some homeowners prefer to compare options elsewhere—particularly when they want different terms or a different approach to service.

Is remortgaging right for you?

Remortgaging isn’t automatically beneficial. It’s usually most effective when you can compare your current position with what you could realistically achieve next.

Key factors to consider include:

• what your mortgage will cost when your current deal ends (including any change to rate type)
• whether early repayment charges apply and how much they could add to the switch
• the overall cost of the new deal, including fees and any product charges
• how long you’re likely to stay on the new mortgage (shorter time horizons can affect value)
• your affordability and credit profile at the time of application

A careful comparison helps you avoid switching into a deal that looks attractive on paper but doesn’t suit your timeline or total costs.

When is the best time to remortgage?

A common approach is to start planning before your current deal ends. This gives time to compare options and complete the application without rushing.

Many homeowners begin reviewing their options a few months ahead, but the exact timing can vary depending on:

• how quickly your lender processes applications
• whether a valuation is required
• your readiness with the information a lender requests

It may also be worth reviewing your mortgage if your circumstances have changed, such as:

• improved income or employment stability
• changes to your credit profile
• a property value change
• a desire to restructure repayments or access equity

How long does remortgaging take?

The remortgaging timeline can vary, but the switch often takes several weeks from application to completion.

Timeframes can be influenced by:

• lender processing and underwriting schedules
• document requirements
• valuation appointments and reporting
• any complexities in the application

It’s also important to remember that time spent comparing deals and gathering information is separate from the lender’s completion period.

The remortgaging process (step by step)

While each case is different, remortgaging generally follows a familiar sequence.

1) Review your current mortgage

Check your existing mortgage statement and agreement for details such as:

• the end date of your current deal
• any early repayment charges
• the rate you’ll move onto if you do nothing

2) Clarify what you want to achieve

Be clear about the priority outcome, for example:

• reducing payments
• securing a more predictable rate
• releasing equity
• changing repayment structure

3) Compare suitable options

Look at deals that fit your circumstances and timeline. Consider the full picture, including fees and how the mortgage cost may change over time.

4) Complete the application

You’ll provide information about your finances and the property. Lenders will assess affordability and may request additional documentation.

5) Valuation and underwriting

The lender may arrange a valuation and carry out underwriting checks. If anything needs clarification, it can affect the timeline.

6) Completion and switch

Once the new mortgage is approved and completed, the new lender repays the existing mortgage balance and your mortgage payments move to the new terms.

What mortgage types can you remortgage to?

Depending on your lender and circumstances, you may be able to remortgage to different product types. Common options include:

• Repayment mortgages: you pay interest and capital over the term.
• Fixed-rate mortgages: the interest rate stays the same for a set period.
• Standard variable rate (SVR): the lender can change the rate in line with its SVR.
• Tracker mortgages: the interest rate follows a specified benchmark.
• Interest-only mortgages: you pay only the interest, with the capital repaid separately.

The “best” option depends on how stable you want payments to be, the length of time you expect to stay, and your broader financial plans.

How much does remortgaging cost?

Remortgaging can involve several costs. Understanding them upfront helps you judge whether the new deal is genuinely better.

Early repayment charges

If you repay your existing mortgage during a chargeable period, you may have to pay an early repayment charge. The amount depends on your mortgage terms and how much time remains.

Fees and charges

Depending on the deal and lender, you may encounter costs such as:

• arrangement or product fees
• valuation-related costs
• legal fees

Some costs may be included in the mortgage, while others may need to be paid separately.

Advice and support (if applicable)

If you choose to use a mortgage adviser, there may be an advice fee. For many homeowners, the value comes from ensuring the comparison accounts for early repayment charges, total costs, and the practical impact of different terms.

Common questions homeowners ask before remortgaging

Before you commit to a new mortgage, it helps to consider:

• what will my mortgage cost after my current deal ends?
• how much would early repayment charges add to the switch?
• is the comparison based on total cost and not just the rate?
• how long am I likely to keep the new deal?
• would releasing equity change my affordability and risk level?

Summary

Remortgaging is the process of replacing your existing mortgage with a new deal—either with your current lender or a different one—without selling your home. It’s often considered when a fixed or discounted period ends, when homeowners want to reduce costs, or when they want to change repayment structure or access equity.

The most important step is comparing your current mortgage position with what you could achieve next, taking into account early repayment charges, the full cost of the new deal, and how long you’re likely to stay on the mortgage.

Important information

A mortgage is a loan secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage.

You may have to pay an early repayment charge to your existing lender if you remortgage.