Remortgaging is switching your existing mortgage to a new deal, either with your current lender or a new one. For a full overview of remortgage options see our remortgage advice hub. Most people do it when their fixed rate ends. This guide walks through the whole process, what it costs, and what to watch out for.
Remortgaging means switching your mortgage to a new deal. You can either switch rates with your current lender (product transfer) or move to a new lender entirely. Staying put requires no legal work. Switching lenders needs a solicitor, though most lenders cover the cost. The whole process takes around four to eight weeks.
When you took out your mortgage you agreed to a rate for a set period, typically two, three or five years. When that period ends your mortgage moves onto your lender's standard variable rate (SVR). The SVR is almost always significantly higher than the deal you were on. Remortgaging is how you avoid that.
You can do it in one of two ways. A product transfer switches you to a new rate with your existing lender, no legal work, often done in days. Moving to a new lender is more involved but opens up the whole market rather than just your current lender's range.
People also remortgage to release equity, change their mortgage term, consolidate debts, or switch from interest-only to repayment. The process is the same, but whether it makes sense depends on your circumstances.
Every lender has an SVR, the rate your mortgage defaults to when a deal ends. Unlike fixed or tracker rates it is not tied to anything and can change at the lender's discretion. Most SVRs sit 2 to 4 percentage points above typical fixed rates. That gap is why most people remortgage rather than staying on it.
Here is what actually happens from start to finish.
Find the exact end date of your current fixed rate or tracker. It is on your mortgage offer or annual statement. Start the process four to six months before this date. That gives you time to compare properly without being rushed.
Divide your outstanding balance by the current value of your property. If your property has risen in value since you bought, your LTV may have dropped into a better band, opening up more competitive deals.
Check your existing lender's product transfer rates, then compare against the full market through a whole-of-market broker. The best rate is not always elsewhere, and a product transfer saves time. A broker runs both comparisons at once.
Once you have chosen a deal the application goes in. A product transfer with your existing lender is usually a straightforward online process. Switching lenders means your broker submits a full application with supporting documents.
If switching lenders the new lender instructs a solicitor and usually a valuation. Most remortgage deals include free legal work. The solicitor redeems your old mortgage and registers the new one. This takes two to four weeks.
The new mortgage completes, your old one is paid off, and you start paying the new lender on your new rate. If you are releasing equity the funds are transferred to you at this point.
Four to six months before your deal ends is the sweet spot. Most lenders let you lock in a new rate this far in advance, so the new deal starts exactly when the old one finishes. You get the rate secured without paying it early.
If rates drop between locking in and completing you can sometimes reassess. Ask your broker what flexibility exists on the product you are considering.
Doing nothing when your deal ends. Your lender will write to you beforehand, but many people miss it, forget, or intend to act and then do not. The mortgage quietly moves onto the SVR and you start paying significantly more every month. It happens to a large number of borrowers, often for months before they notice. Set a reminder when you take out any mortgage deal.
Remortgaging mid-deal can also make sense if rates have fallen significantly, your property has risen in value, or your circumstances have changed. The early repayment charge needs to be weighed against the saving. A broker can run the numbers for your situation.
These are the two routes when remortgaging. Neither is automatically better.
| Product transfer | Switch to new lender | |
|---|---|---|
| Solicitor needed | No | Yes (usually free) |
| Valuation needed | Usually no | Sometimes |
| Time to complete | Days | 4 to 8 weeks |
| Rate options | Your lender only | Full market |
| Credit check | Usually soft or none | Hard search |
| Best for | Speed and simplicity | Getting the best rate from the whole market |
The right choice depends on whether your lender is competitive. Sometimes they are. Often there are better deals elsewhere. A broker checks both in a few minutes.
A product transfer takes days and needs no legal work. A full remortgage to a new lender takes weeks but opens up the whole market. Neither is always better , it depends on the rates at the time.
Timed right, a remortgage can cost very little. Done at the wrong point, the fees add up. Here is what to account for.
| Cost | When it applies | Typical amount |
|---|---|---|
| Early repayment charge | Leaving a deal before it ends | 1% to 5% of outstanding balance |
| Product fee | Many new deals carry one | £0 to £2,000 |
| Legal fees | Switching to a new lender | Often free (covered by lender) |
| Valuation fee | Switching to a new lender | Often free (covered by lender) |
| Broker fee | If you use a broker | £299 with Woodhall (on formal offer only) |
The early repayment charge is the one that catches people out. Check it before assuming you cannot remortgage during a fixed rate. You can, but you need to weigh the charge against the rate saving over the remaining term.
Most lenders let you add the product fee to the loan rather than paying upfront. This saves cash now but means you pay interest on it over the mortgage term. On a smaller loan or shorter remaining term paying upfront often works out cheaper. A broker can run the comparison for your numbers.
Getting a better rate when your deal ends is the most common. There are others worth knowing about.
| Reason | How remortgaging helps |
|---|---|
| Deal ending | Switch to a new rate before the SVR kicks in |
| Rates have fallen | Switch mid-deal if the saving outweighs the early repayment charge |
| Property value has risen | Lower LTV may give access to better rates |
| Release equity | Borrow against increased property value for home improvements or other purposes |
| Change mortgage term | Shorten to pay off sooner or extend to reduce monthly payments |
| Consolidate debts | Roll unsecured debts into the mortgage at a lower rate , but over a longer period |
| Switch from interest-only | Move to repayment to start reducing the outstanding balance |
Consolidating debts into your mortgage reduces monthly outgoings but extends what you repay over a much longer period. You are also securing previously unsecured debt against your home. The total amount repaid over the mortgage term is often significantly higher, even at a lower rate. Think carefully and take proper advice before going down this route.
Call 01422 354011 or use the form below. Woodhall Mortgages compares product transfer and full remortgage options across the whole market and advises on which route makes most sense for your circumstances.
Get Remortgage AdviceWoodhall Mortgages compares remortgage deals across the whole market, including deals not available on comparison sites. We check your existing lender's product transfer options against the full market and advise on which route makes most sense before you commit to anything.
Initial discussion free. A broker fee of £299 is payable if you choose to proceed following a formal mortgage offer. This fee is non-refundable once charged. We may also receive commission from the lender. Your home may be repossessed if you do not keep up repayments on your mortgage. Think carefully before securing other debts against your home.
Get Remortgage AdviceWoodhall Mortgages is authorised and regulated by the Financial Conduct Authority (FRN 762513). As a whole-of-market mortgage broker, we consider mortgages from across the market, subject to lender criteria and product availability. This article is for general information only and does not constitute regulated mortgage advice. Mortgage rates and product availability change frequently. Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
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