Remortgage Guide UK 2026

Remortgaging is the process of switching your existing mortgage to a new deal, either with your current lender or a different one. It is one of the most important financial decisions a homeowner can make, potentially saving thousands of pounds in interest and providing access to better terms. This comprehensive guide explains when, why, and how to remortgage in the UK, helping you make an informed decision about your biggest financial commitment.

What Is Remortgaging?

Remortgaging means replacing your current mortgage with a new one. This can involve switching to a new deal with the same lender (known as a product transfer) or moving your mortgage to an entirely different lender. When you remortgage to a new lender, the new lender pays off your existing mortgage and sets up a new one in its place, secured against the same property. The process is simpler than buying a home because there is no property transaction — you already own the property and are simply changing the financing.

Millions of UK homeowners remortgage every year, typically when their initial fixed or discounted rate period ends. Failure to remortgage at this point means your mortgage reverts to the lender's Standard Variable Rate (SVR), which is almost always significantly higher than the best available deals. In 2026, the average SVR sits at around 7.5-8.5%, compared to competitive fixed rates of 4.0-5.0%. On a £200,000 mortgage, the difference between a 4.5% fixed rate and a 7.5% SVR is approximately £380 per month — over £4,500 per year in unnecessary additional cost.

The SVR Trap: Approximately 800,000 UK homeowners are currently on their lender's SVR, collectively paying billions of pounds more in interest than necessary. If your initial deal has ended and you have not remortgaged, you are almost certainly paying too much. Check your current rate and compare it with deals available today using our mortgage calculator.

Reasons to Remortgage

There are several compelling reasons to consider remortgaging, and the right one depends on your circumstances and objectives.

To Get a Better Interest Rate

The most common reason for remortgaging is to secure a lower interest rate when your current deal expires. As your fixed or discounted rate period ends, switching to a new competitive deal can save you hundreds of pounds per month. Even if you are mid-way through a deal, it may be worth calculating whether the savings from a lower rate outweigh any early repayment charges. Our mortgage calculator can help you compare scenarios.

To Release Equity

If your property has increased in value since you purchased it, you may have built up significant equity that can be released through remortgaging. This involves borrowing more than your current outstanding balance and receiving the difference as cash. Homeowners commonly release equity for home improvements (which can further increase property value), debt consolidation (replacing expensive credit with lower mortgage rates), or other major expenses. However, remember that any equity released is added to your mortgage debt, extending your overall repayment period and total interest cost.

To Change Your Mortgage Type

Remortgaging provides an opportunity to change the type of mortgage product you have. You might switch from a variable rate to a fixed rate for payment security, from an interest-only mortgage to repayment to ensure the loan is paid off, or from a long term to a shorter term if your income has increased. Life changes such as marriage, inheritance, or career progression can all prompt a reassessment of the most suitable mortgage structure.

To Consolidate Debts

Remortgaging to consolidate expensive debts — such as credit cards, personal loans, or car finance — into your mortgage can significantly reduce your total monthly outgoings. Mortgage rates are typically much lower than unsecured lending rates. However, this strategy has an important caveat: while monthly payments are lower, you are spreading the debt over the much longer mortgage term, which means you may pay more interest in total. You also convert unsecured debt into secured debt, putting your home at risk if you fail to make payments.

When Should You Remortgage?

Timing is crucial when remortgaging. Start looking at your options approximately six months before your current deal expires. Most new mortgage offers are valid for three to six months, so you can secure a rate well in advance and let it complete on the date your current deal ends. This avoids any gap where you might fall onto the SVR. Set a calendar reminder for six months before your deal end date to begin the process.

If you are in the middle of a fixed-rate deal, remortgaging means paying an Early Repayment Charge (ERC), which can be substantial — typically 1-5% of the outstanding balance depending on how far into the deal you are. Calculate whether the monthly savings from a new lower rate would recoup the ERC within a reasonable period. Sometimes paying the ERC is worthwhile if rates have dropped significantly or if you need to release equity urgently. A mortgage broker can run the numbers for your specific situation.

The Remortgage Process: Step by Step

  1. Review your current deal — check when your rate expires, your current balance, any ERCs, and your remaining term. Your most recent annual mortgage statement contains this information.
  2. Check your property value — use recent sold prices in your area and online valuation tools to estimate your home's current value. This determines your LTV ratio, which affects available rates.
  3. Compare deals — use comparison tools or speak to a mortgage broker to identify the best products for your circumstances. Consider the total cost including arrangement fees, not just the interest rate.
  4. Apply for the new mortgage — submit a full application with your chosen lender, providing income evidence, bank statements, and other required documents.
  5. Property valuation — the new lender will value your property to confirm it provides adequate security for the loan.
  6. Legal work — a solicitor handles the legal transfer of the mortgage from one lender to another. Many remortgage deals include free legal work.
  7. Completion — the new lender pays off your old mortgage and the new deal begins. This is typically coordinated to happen on the date your old deal expires.

Costs of Remortgaging

While remortgaging can save you significant money, there are costs involved that should be factored into your calculations. Arrangement fees charged by the new lender range from free to £1,999, with many lenders offering fee-free products at slightly higher rates. Valuation fees are often waived by lenders as an incentive, but may cost £250-£500 if charged. Legal fees for the conveyancing work are frequently included as a free perk of remortgage deals. If your current deal has not expired, Early Repayment Charges may apply — check your mortgage terms carefully.

When comparing deals, always calculate the total cost over the deal period (typically two or five years) including all fees, not just the monthly payment. A product with a £999 arrangement fee and a rate of 4.0% may cost more overall than a fee-free product at 4.3%, depending on your mortgage size. Adding the arrangement fee to the mortgage is possible with most lenders, but remember you will then pay interest on that fee for the remaining mortgage term.

Product Transfer vs Full Remortgage

When your current deal expires, your existing lender will typically offer you a product transfer to one of their current deals. This is the simplest option — it usually requires no valuation, no legal work, and minimal paperwork. However, product transfer rates are not always competitive with the wider market. Always compare your lender's product transfer offer with deals available from other lenders before deciding. A mortgage broker can run this comparison for you and advise whether the convenience of a product transfer is worth any rate premium over switching to a new lender.

Remortgage Checklist

  • Check when your current deal expires and note any early repayment charges
  • Review your current mortgage balance and monthly payment
  • Estimate your property's current market value
  • Calculate your current loan-to-value ratio
  • Gather required documents: payslips, bank statements, proof of identity
  • Compare deals from multiple lenders or speak to a mortgage broker
  • Consider both the interest rate and total cost including fees
  • Apply at least 3-4 months before your current deal expires
  • Respond promptly to any lender or solicitor requests
  • Confirm completion is timed to coincide with your deal end date

Frequently Asked Questions

How long does remortgaging take?

A typical remortgage takes 4-8 weeks from application to completion. Since there is no property purchase involved, the process is generally faster and simpler than buying a home. You can start the process up to 6 months before your current deal ends to ensure a smooth transition with no gap on the SVR.

Can I remortgage to release equity?

Yes, if your property has increased in value since you bought it, you can remortgage for a higher amount than your current balance and receive the difference as cash. This is commonly used for home improvements, debt consolidation, or other major expenses. Your new mortgage must still pass affordability checks, and you should consider whether the long-term cost of adding to your mortgage is worthwhile.

Do I need a solicitor to remortgage?

Yes, legal work is required for a remortgage to update the charge on the property from one lender to another. However, many lenders offer free legal work as part of their remortgage deal, handled by their panel solicitors, which saves you the cost of instructing your own. Product transfers with your existing lender typically do not require any legal work.

What is the SVR trap and how do I avoid it?

The SVR trap occurs when your fixed or discounted rate mortgage deal ends and you automatically move to the lender's Standard Variable Rate, which is typically 1.5-3% higher than competitive fixed rates. You avoid it by remortgaging to a new deal before your current one expires. Set a reminder 6 months before your deal ends to start the process of comparing new products and submitting your application.

Can I remortgage with bad credit?

Yes, though your options will be more limited and rates will be higher than for borrowers with clean credit histories. Specialist lenders and brokers cater to borrowers with adverse credit including missed payments, defaults, CCJs, and even previous bankruptcies. If you have maintained your mortgage payments on time, this works strongly in your favour regardless of other credit issues. A broker experienced in adverse credit is invaluable in these situations.