When should I remortgage?

The best time to remortgage is typically 3-6 months before your current fixed-rate or introductory deal ends, as you will otherwise move onto your lender's standard variable rate (SVR), which is usually much higher. You might also consider remortgaging if interest rates have dropped significantly, your property has increased in value (giving you a lower LTV), or you want to release equity. Most mortgage offers are valid for 3-6 months, so you can lock in a rate early.

How much does it cost to remortgage?

Remortgaging costs typically include: arrangement fees (£0-£2,000), valuation fees (£0-£500, often free), legal/conveyancing fees (£300-£1,000, often free with lender deals), and potentially early repayment charges if you leave your current deal early. Many lenders offer fee-free remortgage deals or cashback to offset costs. Our calculator helps you compare total costs to ensure remortgaging is worthwhile.

Can I remortgage to release equity?

Yes, remortgaging to release equity is common. You borrow more than your current mortgage balance, and the extra funds are paid to you. This can be used for home improvements, consolidating debts, or other purposes. However, borrowing more increases your monthly payments and the total interest paid. Lenders will assess your affordability for the higher amount and your LTV must stay within their limits, typically 80-90% maximum.

Should I remortgage to a fixed or variable rate?

Fixed rates give payment certainty — your monthly payment stays the same for the fixed period (typically 2-5 years), making budgeting easier. Variable rates (trackers or discounted rates) may start lower but can rise or fall with the Bank of England base rate. Choose fixed if you value stability and rates may rise; choose variable if you believe rates will fall or want flexibility. In uncertain economic times, many borrowers prefer the security of a fixed rate.

Can I remortgage with bad credit?

Yes, but your options may be more limited. High street lenders prefer clean credit histories, but specialist lenders cater to borrowers with CCJs, defaults, missed payments, or low credit scores. Rates will typically be higher, and you may need a lower LTV (larger deposit/equity). Improving your credit score before applying, reducing debts, and using a specialist mortgage broker can all help you find suitable deals.

Remortgage Calculator UK - Compare Savings & Costs

	Current Mortgage	New Mortgage	Difference
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Total Interest	£0	£0	£0
Setup Costs	£0	£0	£0

Remortgaging Considerations

Early Repayment Charges: Check if you'll face penalties for leaving early
Arrangement Fees: Factor in setup costs for the new mortgage
Valuation Required: New lender will need property valuation
Credit Check: Your credit score affects available rates

What is Remortgaging?

Remortgaging means switching your existing mortgage to a new deal, either with your current lender (known as a product transfer) or with a different lender. Most homeowners remortgage when their initial fixed-rate or tracker period ends to avoid moving onto their lender's standard variable rate (SVR), which is typically 1-3% higher than the best available deals.

The remortgaging process is simpler than your original mortgage application. There is no property chain or estate agent involved, and the process typically takes 4-8 weeks from application to completion. Your new lender's solicitor handles the legal work, which is often offered free of charge as part of the remortgage package.

When Should You Remortgage?

Deal Ending

Start looking 3-6 months before your current deal expires. Most mortgage offers are valid for 3-6 months, so you can lock in a rate early without commitment. If rates drop before completion, some lenders allow you to switch to their latest deal.

Property Value Increase

If your property has risen in value, your loan-to-value (LTV) ratio will be lower. This could move you into a cheaper LTV band. Use our LTV calculator to check your current ratio.

Rates Have Dropped

If market rates have fallen significantly since you took out your mortgage, remortgaging could save you money — even if you need to pay an early repayment charge. Our calculator helps you compare the total cost including fees.

Release Equity

Remortgaging allows you to borrow additional funds against your property's value for home improvements, debt consolidation, or other purposes. Lenders typically allow borrowing up to 80-90% of your property's current value.

Costs Involved in Remortgaging

Understanding the full costs is essential to determine whether remortgaging is worthwhile. Our calculator factors in these costs to give you an accurate picture of your potential savings.

Cost	Typical Range	Notes
Arrangement fee	£0 - £2,000	Can sometimes be added to the mortgage balance, but you will pay interest on it
Valuation fee	£0 - £500	Often free with remortgage deals; some use automated valuations
Legal fees	£0 - £1,000	Many lenders offer free legal work for remortgages
Early repayment charge	1-5% of balance	Only applies if leaving during a fixed or discounted rate period
Exit fee	£0 - £300	Administrative charge from your current lender for closing the mortgage

Product Transfer vs Full Remortgage

Product Transfer

Switching to a new deal with your existing lender.

Simpler and faster process (often completed online)
Usually no valuation or legal fees
No new affordability assessment in most cases
Limited to your current lender's products
May not offer the most competitive rates

Best for: Those who want simplicity and whose current lender offers competitive rates.

Full Remortgage

Moving to a new lender entirely.

Access to the whole market for the best rates
Opportunity to release equity or change terms
Full affordability and credit assessment required
Property valuation usually needed
Takes longer (4-8 weeks typically)

Best for: Those seeking the lowest rates, wanting to release equity, or change mortgage type.

Step-by-Step Remortgaging Guide

Check your current deal: Note when your current rate expires, any ERCs, and your outstanding balance. Set a reminder 6 months before your deal ends.
Get your property valued: Check recent sale prices of similar properties on property portals to estimate your current property value and LTV.
Compare deals: Use our calculator to compare your current costs with new deals. Consider both product transfers and full remortgages.
Apply for a mortgage in principle: This confirms how much a new lender would offer without a full credit check. Most are valid for 60-90 days.
Submit full application: Provide proof of income, bank statements, and ID. The lender will arrange a valuation.
Completion: Once approved, the new lender's solicitor handles the transfer. Your old mortgage is paid off and the new deal begins.

Important Remortgaging Tips

Don't just look at the rate: A low rate with a £2,000 fee may cost more overall than a slightly higher fee-free deal. Always compare the total cost over the deal period
Consider the term: Extending your mortgage term reduces monthly payments but increases total interest paid. Only extend if necessary for affordability
Adding fees to the balance: While convenient, adding arrangement fees to your mortgage means paying interest on them for the full term
Check your credit score: Review your credit report before applying and correct any errors. Avoid other credit applications in the months before remortgaging

This calculator provides estimates for comparison purposes. Actual mortgage offers may differ based on your specific circumstances. We recommend consulting a qualified mortgage advisor who can search the whole market on your behalf.

Related: Read our complete remortgaging guide, check early repayment charges, and see the latest mortgage deals.

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