Remortgaging means switching your existing mortgage to a new deal — either with your current lender or a different one. Done right, it can save you thousands of pounds per year.
When Should You Remortgage?
1. Your Current Deal Is Ending
This is the most common reason. When your fixed rate period ends, you automatically move to your lender’s Standard Variable Rate (SVR). SVRs are typically much higher than fixed rates.
| Current Deal | Typical SVR After | Monthly Payment (on £200,000, 25 years) |
|---|---|---|
| 2-year fixed at 4.5% | 6.5% SVR | £1,100 vs £1,357 |
| 5-year fixed at 4.0% | 6.5% SVR | £1,050 vs £1,357 |
That is a difference of around £250-£300 per month — over £3,000 per year — for doing nothing.
2. Better Rates Are Available
If interest rates have dropped since you took out your mortgage, you may be able to switch to a cheaper deal.
3. Your Home Value Has Increased
If your property has gone up in value, your loan-to-value (LTV) ratio improves. Lower LTV means access to better rates.
4. You Want to Overpay
Different mortgages have different overpayment limits. If you want the flexibility to pay off your mortgage faster, remortgaging to a product with higher overpayment allowances can make sense.
Types of Remortgage Deals
Fixed Rate
Your interest rate stays the same for a set period (usually 2, 3, or 5 years). This gives you certainty — your monthly payment won’t change regardless of what the Bank of England does.
- Best for: People who want predictable monthly payments
- Watch out for: Early repayment charges if you move or overpay above the limit
Variable Rate
The rate can go up or down at any time, usually tracking the Bank of England base rate.
- Best for: People who think rates will fall
- Watch out for: Payments can increase unexpectedly
Tracker Mortgage
A type of variable rate that “tracks” the Bank of England base rate at a set margin above it.
- Best for: People who want to benefit from rate falls
- Watch out for: Payments rise when rates rise
Discount Mortgage
A discount off your lender’s SVR for a set period.
- Best for: Short-term savings
- Watch out for: SVR can change at any time
Fixed rate deals are by far the most popular in the UK because they offer certainty and make budgeting easier.
Best Rates Available
As of mid-2026, typical UK mortgage rates are:
| Deal Type | Rate Range |
|---|---|
| 2-year fixed | 4.0% - 5.0% |
| 3-year fixed | 4.2% - 5.2% |
| 5-year fixed | 4.0% - 5.5% |
| Tracker | 4.0% - 5.5% |
The exact rate you’re offered depends on:
- Your LTV — lower is better. 60% LTV gets the best rates; 95% gets the worst
- Your credit score — a clean credit history means better deals
- The property — some lenders have restrictions on property types
- The product — rates with fees are often lower than fee-free deals
Where to Find the Best Deals
- L&C (London & Country) — Free whole-of-market mortgage broker
- Habito — Online mortgage broker with AI-powered matching
- MoneySuperMarket — Comparison site for mortgage deals
- Trussle — Online broker with a free remortgage service
- Your existing lender — Check what they offer, but don’t assume it’s the best deal
Costs of Remortgaging
Remortgaging isn’t free. Factor these costs into your decision:
| Cost | Typical Amount |
|---|---|
| Arrangement fee | £0 - £2,000 |
| Valuation fee | £0 - £500 |
| Legal fees | £0 - £1,500 |
| Early repayment charge (if applicable) | 1-5% of outstanding balance |
Tip: Some lenders offer fee-free deals or will contribute towards legal fees. Always ask.
Working Out if It’s Worth It
Use this formula:
Annual saving x Years of new deal - Total fees = Net saving
If the result is positive, remortgaging is worth it.
The Remortgage Process
Remortgaging is simpler than getting your first mortgage. Here is the typical process:
Step 1: Compare Deals
Use comparison sites or speak to a broker. Check rates, fees, and total cost over the deal period.
Step 2: Check Your Current Deal
Find out:
- When your current deal ends
- Whether there are early repayment charges (ERCs)
- Your current interest rate and outstanding balance
- Your current property value (check Rightmove or Zoopla for an estimate)
Step 3: Apply
Submit your application to the new lender. You’ll need:
- Proof of income (payslips, tax returns if self-employed)
- Bank statements (typically 3-6 months)
- Details of your current mortgage
- Property details
Step 4: Valuation
The new lender will value your property. Many lenders offer free valuations as part of the deal.
Step 5: Offer
If approved, you’ll receive a formal mortgage offer.
Step 6: Legal Work
The new lender’s solicitor handles the legal transfer. This is usually paid for by the lender.
Step 7: Completion
Your old mortgage is paid off and your new mortgage starts. The whole process typically takes 4-8 weeks.
Overpaying Your Mortgage
Most UK lenders allow you to overpay up to 10% of your outstanding balance per year without penalty. This can save you a significant amount in interest and reduce your mortgage term.
Example: Impact of Overpaying
On a £200,000 mortgage at 4% over 25 years:
| Scenario | Monthly Payment | Total Interest Paid | Term |
|---|---|---|---|
| No overpayment | £1,050 | £115,000 | 25 years |
| Overpay £200/month | £1,250 | £82,000 | 19 years |
| Overpay £500/month | £1,550 | £58,000 | 14 years |
Overpaying £200 per month saves you £33,000 in interest and clears your mortgage 6 years early.
Before overpaying, make sure you:
- Have an emergency fund (3-6 months of expenses)
- Have paid off any higher-interest debt (credit cards, personal loans)
- Check your mortgage allows overpayments without penalty
Worked Example: Is Remortgaging Worth It?
Let’s say you have a £200,000 mortgage with 25 years remaining.
| Detail | Current Deal | New Deal |
|---|---|---|
| Interest rate | 5.0% | 4.0% |
| Monthly payment | £1,169 | £1,056 |
| Monthly saving | — | £113 |
| Annual saving | — | £1,356 |
| 5-year saving | — | £6,780 |
Minus fees:
| Fee | Amount |
|---|---|
| Arrangement fee | £1,000 |
| Valuation fee | £0 (free with new lender) |
| Legal fees | £300 |
| Total fees | £1,300 |
Net saving over 5 years: £6,780 - £1,300 = £5,480
That is £5,480 saved over 5 years just by switching deals. Even after fees, it’s well worth it.
Tips for Remortgaging
- Start looking 3-6 months before your deal ends. Mortgage offers last 3-6 months, so you can lock in a new rate early.
- Compare total cost, not just the interest rate. A low rate with high fees may cost more than a slightly higher rate with no fees.
- Use a broker. Whole-of-market brokers like L&C or Habito can find deals you won’t see on comparison sites. They’re usually free to you.
- Don’t just stay with your existing lender by default. Loyalty rarely pays in mortgages. Your lender’s new-customer deals are almost always better than what they offer existing customers.
- Consider overpaying. Even an extra £50-£100 per month can save you thousands in interest and shorten your term.
- Check for early repayment charges. If you’re still within a fixed deal, leaving early could cost you 1-5% of the outstanding balance.
- Remortgage to a lower LTV if possible. If your property has increased in value, you may qualify for better rates.
- Don’t overborrow. Just because you can release equity doesn’t mean you should. Borrow only what you need.
Useful Resources
- MoneyHelper — Free, impartial guidance from the UK government on mortgages and remortgaging
- Which? — Independent mortgage reviews and comparisons
- L&C (London & Country) — Free whole-of-market mortgage broker
- Habito — Online mortgage broker with instant decisions
- MoneySuperMarket — Compare mortgage rates and deals
- Trussle — Free online remortgage broker
Summary
Remortgaging is one of the easiest ways to save money on your mortgage. The key points:
- Start early — 3-6 months before your deal ends
- Compare the total cost including all fees
- Use a broker for access to the best deals
- Consider overpaying to reduce your term and interest
- Don’t default to your existing lender — loyalty rarely pays
A remortgage that takes an hour of your time could save you thousands of pounds over the next few years.