How to Remortgage: A Step-by-Step Guide for UK Homeowners

Remortgaging means switching your existing mortgage to a new deal — either with your current lender or a different one. It is one of the most effective ways homeowners can save money, and most people should remortgage every 2–5 years to avoid reverting to their lender’s Standard Variable Rate (SVR).

Why Remortgage?

The most common reasons to remortgage are:

• **Your fixed rate is ending** — when a deal expires you roll onto the SVR, which is typically 2–3% higher
• **Rates have fallen** — locking in a lower rate than your current one
• **You need to release equity** — borrow more against the increased value of your home
• **Debt consolidation** — folding unsecured debts into a lower-rate mortgage (with caution)
• **Home improvements** — raise funds for an extension, loft conversion, or renovation
• **Change mortgage type** — move from interest-only to repayment, or vice versa

When Should You Start?

Start looking **6 months before your current deal ends**. Most mortgage offers are valid for 3–6 months, so applying early means you can lock in a rate now and complete the switch when your current deal expires — avoiding early repayment charges (ERC).

If you remortgage before the end of your fixed term, you will typically pay an ERC of 1–5% of the outstanding balance. Always check your ERC before starting the process.

Step 1: Check Your Current Deal

Before comparing deals, find out:

• When does your current deal end?
• What is your current interest rate?
• What is the outstanding balance?
• What is your current loan-to-value (LTV)?
• Are there any early repayment charges?

This information is in your annual mortgage statement or your lender’s online portal.

Step 2: Calculate Your Loan-to-Value

LTV is the percentage of your property’s current value that you owe. The lower your LTV, the better the rates available.

If your home is now worth £400,000 and you owe £240,000, your LTV is 60%. This would qualify you for the best-rate mortgage products, which typically require LTV of 60% or below.

Use Property Passport UK’s sold price data for comparable properties to estimate your current market value before applying.

Step 3: Decide Whether to Use a Broker

An independent mortgage broker can:

• Search the whole market (not just one lender’s products)
• Identify deals not available directly to consumers
• Handle the application on your behalf
• Advise on which product suits your circumstances

Most brokers are free (paid by lender commission); some charge a fee (£300–£500) for independent whole-of-market advice. The fee is usually worth it for larger mortgages.

Step 4: Compare Deals

When comparing remortgage products, look at:

• **Initial rate** — the rate during the fixed/tracker period
• **Revert rate (SVR)** — what you pay after the deal ends
• **APRC** — Annual Percentage Rate of Charge, which factors in fees over the full term
• **Product fees** — arrangement fees of £999–£1,999 are common; sometimes worth paying for a lower rate
• **Incentives** — free valuation, free legal work, cashback

Always calculate the total cost over the initial period including fees, not just the headline rate.

Step 5: Apply

Once you’ve chosen a product:

1. Submit a decision in principle (DIP) — a soft credit check that confirms your eligibility

2. Submit the full application with supporting documents: payslips (last 3 months), bank statements (last 3 months), ID, proof of address

3. The lender arranges a valuation (usually automated or a desk-based assessment for straightforward remortgages)

4. The lender issues a formal mortgage offer (typically within 2–4 weeks of application)

5. A solicitor or licensed conveyancer handles the legal transfer (many remortgage deals include free legal work)

Step 6: Complete

Completion typically takes place on a set date — usually the end of your current deal. The new lender pays off the old mortgage, and you begin paying the new one.

Total remortgage process: **6–8 weeks** from application to completion if straightforward.

How Much Can You Save?

A homeowner with £200,000 outstanding on an SVR of 7.5% paying their lender’s rate would save approximately £300–£500 per month by switching to a new 5-year fix at 4.5%. Over the 5-year term, that is £18,000–£30,000 saved.

Product Transfer vs Full Remortgage

A product transfer (switching to a new deal with your existing lender) is faster and simpler than a full remortgage, but may not offer the best rate on the market. Always compare your lender’s retention deals against the whole market before accepting.