Remortgaging is one of the most powerful financial tools homeowners can use to save money, reduce repayments, or release cash from their property.
Yet many people still find the process confusing — especially when trying to figure out if it’s worth switching from their current mortgage deal.
In this guide, our MillionPlus mortgage experts explain how remortgaging works, when to consider it, how much it costs, and what to watch out for before making the switch.
What Is Remortgaging?
Remortgaging simply means replacing your existing mortgage with a new one — either with your current lender or a new lender offering better terms.
It doesn’t involve moving home; instead, it’s about changing the financial deal on your current property to get a better rate or more flexibility.
You might choose to remortgage to:
- Secure a lower interest rate and save on monthly payments.
- Avoid switching to your lender’s Standard Variable Rate (SVR) after your fixed period ends.
- Borrow more money for renovations, education, or consolidating debts.
- Switch from interest-only to repayment to start building equity.
Remortgaging gives you control over your biggest financial commitment — your home loan — helping ensure it continues to suit your life and income.
How Does Remortgaging Work?
When you remortgage, you take out a new mortgage that pays off your existing one.
If you stay with your current lender, this process is often called a product transfer — typically faster and with fewer fees.
If you move to a different lender, your new provider will arrange to pay off your old loan, and you’ll begin repayments on the new mortgage.
Here’s how the process usually unfolds:
- Review your current deal: Check when your fixed or discounted rate ends.
- Compare rates: Look at what other lenders are offering — small rate differences can mean big savings.
- Get a property valuation: The lender assesses your home’s current value to calculate your new loan-to-value (LTV) ratio.
- Apply for your new mortgage: Submit financial documents and pass affordability checks.
- Complete the switch: Once approved, your old mortgage is cleared and your new deal begins.
💡 Example: If your £250,000 mortgage at 5.5% moves to a 4.3% rate through remortgaging, you could save over £2,000 per year in interest alone.
When Should You Remortgage?
Most people remortgage at the end of their fixed or tracker period (typically every 2, 3, or 5 years).
When this period expires, your lender automatically transfers you to their Standard Variable Rate (SVR) — often 2–3% higher than market deals.
✅ Best time to start:
Start exploring new deals six months before your fixed rate ends.
This gives you time to secure a better rate early and avoid overpaying once your deal expires.
⚠️ Avoid remortgaging too early if your current deal includes early repayment charges (ERCs), which can offset your savings.
Families planning a remortgage can also check our guide on remortgaging fees and costs for families to estimate total charges and avoid hidden expenses.
Why Do Homeowners Remortgage?
There are several reasons why remortgaging can make financial sense.
Here are the most common motivations:
- To lower your interest rate: The main reason most homeowners switch.
- To access equity: Borrow extra funds for home improvements or children’s education.
- To change mortgage type: For example, moving from interest-only to repayment for long-term stability.
- To consolidate debts: Merge personal loans or credit cards into one manageable monthly payment.
- To avoid reverting to the SVR: Protect yourself from rate hikes.
Each of these reasons depends on your financial situation, property value, and future goals.
Costs Involved in Remortgaging
Remortgaging isn’t always free. While some lenders offer “fee-free” remortgage deals, others may charge setup or exit costs.
Here’s what you might pay:
💡 Tip: Many homeowners can offset these costs by securing a lower interest rate or choosing a cashback remortgage deal.Fee Type | Typical Range | Description |
|---|---|---|
| Early Repayment Charge (ERC) | 1–5% of loan | Applies if you switch before your fixed period ends. |
| Product or Arrangement Fee | £0–£2,000 | Charged by lenders for setting up your new mortgage deal. |
| Valuation Fee | £0–£1,500 | Covers property valuation (often free on some remortgage deals). |
| Legal Fees / Conveyancing | £0–£1,000 | Required when changing to a new lender. Some lenders cover this cost. |
| Broker Fee | £0–£495 | Optional — brokers find the best deals and handle paperwork. |
💡 Tip: Many homeowners can offset these costs by securing a lower interest rate or choosing a cashback remortgage deal.
Things to Consider Before Remortgaging
Before jumping into a new mortgage deal, take time to weigh your options carefully.
- Check for ERCs: Leaving your current deal early can be costly.
- Compare total savings: Don’t focus solely on rate — factor in setup and legal costs.
- Monitor your LTV ratio: A lower loan-to-value means access to better mortgage rates.
- Review your credit score: Lenders still assess affordability, even for existing homeowners.
If you’re nearing retirement, our guide on mortgage options for older buyers can help you explore flexible products designed for later life.
Do I Need a Solicitor to Remortgage?
If you’re switching to a new lender, a conveyancing solicitor is required to handle the transfer of funds and title deeds.
However, if you’re staying with your current lender (product transfer), legal work is minimal or unnecessary.
Many remortgage products include free legal services, so check with your broker or lender before appointing one independently.
What Happens If My Circumstances Have Changed?
If you’ve changed jobs, become self-employed, or taken maternity leave since your last mortgage, this may affect your affordability assessment.
You’ll need to provide up-to-date proof of income such as:
- Recent payslips or tax returns
- Employer references (if applicable)
- Business accounts (for self-employed applicants)
If your earnings have decreased, consider extending your term instead of remortgaging — see our guide on changing the term of your mortgage for practical solutions.
How Long Does Remortgaging Take?
The process typically takes four to eight weeks, depending on your lender and circumstances.
Product transfers (same lender) are usually faster — often completed in as little as two weeks.
Remortgaging to a new lender involves more checks, such as valuations and affordability assessments, which may extend the timeline.
Is Remortgaging a Good Idea?
Remortgaging can be an excellent financial move if it saves you money, improves your mortgage flexibility, or lets you release equity for life goals.
However, it’s not right for everyone.
You should avoid remortgaging if:
- Early repayment charges exceed potential savings.
- You’re planning to sell your home soon.
- Your credit score has recently dropped.
Always speak with an independent mortgage adviser who can compare thousands of deals and ensure you’re not paying more than necessary.
Our expert advisers at MillionPlus can compare over 90 lenders and 12,000 mortgages to help you find a deal that fits your financial goals.
Final Thoughts
Remortgaging is about more than just saving money — it’s about taking control of your financial future.
By reviewing your mortgage regularly, you can reduce long-term costs, protect against rate changes, and adapt to new life circumstances.
If you’re unsure where to start, speak to a MillionPlus mortgage expert today for personalised advice on remortgaging, product transfers, or refinancing strategies.
