What is remortgaging and how does the process work?

Last updated: 05 Nov 2025

Key takeaways: 

• Remortgaging is the name given to switching to a new mortgage deal when your current one comes to an end 

• Remortgaging can save you hundreds or even thousands of pounds each year, when compared to the amount you’d pay if you moved on to your lender’s Standard Variable Rate when your fixed deal ends 

• You can start the process of remortgaging months before your existing deal ends 

When your existing fixed rate mortgage deal comes to an end, chances are you’ll want to secure a new deal to keep your monthly mortgage repayments as low as possible. In fact, doing nothing could cost you significantly more each month. Switching to a new mortgage deal with a different lender, is what’s known as remortgaging.   

But what exactly is remortgaging, and how does the process work? This guide explains everything you need to know, from the basics through to completion, and help you understand whether it might be right for your situation.

Explore your options with our Remortgage Calculator

What is remortgaging? 

Remortgaging is the process of replacing your current mortgage with a new deal. You can either switch to a new product with your existing lender (called a ‘product transfer’) or move to a completely different mortgage provider. 

The key thing to note is that you’re not moving house – you’re staying in the same property, but changing the terms of how you pay for it. Think of it like switching energy suppliers to get a better deal, except you’re switching mortgage lenders instead. 

Most people remortgage when their initial fixed-rate period ends. For example, if you took out a two-year fixed-rate mortgage when you bought your home, you might remortgage after those two years are up to avoid being moved onto your lender’s Standard Variable Rate (SVR), which is typically more expensive. 

The difference between remortgaging and switching deals 

It’s worth noting that remortgaging isn’t your only option when your deal ends. There are three choices to choose from:  

• Product transfer: Stay with your current lender but move to one of their new deals 

• Do nothing: Be automatically moved to your lender’s Standard Variable Rate (usually the most expensive option) 

• Remortgage: Switch to a completely different lender  

Why do people remortgage? 

Recent Bank of England data shows that remortgages make up around 29% of all new mortgage lending to homeowners. And there are several reasons why hundreds of thousands of homeowners choose to remortgage each year.  

Save money with better rates 

Moving to a deal with a lower mortgage rate, if it’s available will be most people’s desired outcome when they’re remortgaging. If you’re currently on your lender’s SVR, or if interest rates have fallen since you took out your mortgage, remortgaging to a lower rate could save you a decent chunk of money each month. To give you an idea of how much you could save, you can expect that for every 1% reduction in the mortgage rate you’re offered, this equates to a £54 monthly saving for every £100,000 you have left to pay on your mortgage (based on a typical 25-year repayment term).  

Take a look at the current average remortgage rates here. 

Avoid expensive standard variable rates 

When your fixed-rate deal ends, lenders typically move you to their SVR, which can be significantly higher than competitive market rates. 

Certainty about monthly payment amounts 

If you’re worried about interest rates rising, you might remortgage from a variable rate or tracker mortgage, to a fixed rate. This will give you predictable monthly payments which won’t change until your fixed term ends, regardless of what happens with the Bank of England’s Base Rate, or inflation.  

Release equity from your property 

If your home has increased in value, you might remortgage to borrow additional money to make home improvements, consolidate your debt, or to cover other major expenses. 

Change your mortgage terms 

You might be able to change some of the terms of your mortgage when you remortgage. For example, you may want to extend or reduce your mortgage term, or switch from interest-only to repayment. 

The benefits of remortgaging 

Understanding the potential advantages of remortgaging can help you decide whether it’s worth exploring. Let’s take a look at some of the major benefits.  

Potential significant savings 

The primary benefit is financial. Even a small reduction in your interest rate can translate to substantial savings over time. As mentioned, a general rule is for every 1% shaved off your mortgage rate, this equates to a £54 monthly saving for every £100,000 you have left to pay on your mortgage.  

Better mortgage features 

Newer mortgage products often come with improved features like overpayment allowances, or the ability to port your mortgage if you move house. Porting allows you to transfer your existing mortgage deal to a new property, which can be particularly valuable if you have a competitive rate you want to keep hold of. 

Debt consolidation 

If you have other expensive debts such as credit cards or personal loans, remortgaging to release equity can help you consolidate these into one manageable monthly payment at a lower interest rate. 

Access to more competitive rates 

The mortgage market is often highly competitive, and new deals are launched regularly. By remortgaging, you can take advantage of rates and products that might not have been available when you first bought your home. 

Common misconceptions and concerns about remortgaging 

Despite how many people decide to remortgage and the potential benefits on offer, the process still raises some questions and concerns for many homeowners. Here are some of the more common myths and misconceptions.  

Myth: “Remortgaging is always expensive and complicated” 

While there are costs involved (such as arrangement fees, legal fees and valuation costs), these are often outweighed by the savings you might make by moving onto a lower rate. The process typically takes 4-8 weeks, but you’ll likely find that a product transfer is much quicker than this. 

Myth: “It’s risky to change lenders” 

All mortgage lenders are regulated by the Financial Conduct Authority, and the legal process ensures your new mortgage is properly secured against your property. Changing lenders is a routine process handled by thousands of homeowners every month. 

Concern: Impact on credit score 

Lenders will check your credit score when you apply to remortgage, and perform a ‘hard’ credit check. However, this is all a standard part of the process of remortgaging, and any impact on your credit score will likely be short term, and minimal.  

It’s important to note that multiple ‘hard’ credit searches over a short period of time can negatively affect your credit score. 
 
Read more about the difference between hard and soft credit checks here. 

Concern: Fees outweighing savings 

This can be a valid concern, especially if you have a smaller mortgage. However, many competitive deals come with low or no fees, and even when fees exist, the long-term savings often far outweigh the upfront costs. You can also ask your lender or mortgage broker to explain these costs to you upfront, to help you work out which offers the best value in the long term.  

Things to think about before remortgaging 

Before you start the remortgaging process, you’ll want to understand the potential costs and requirements involved. Taking time to consider these factors upfront can help you make an informed decision.  

Check for early repayment charges 

If you’re still within a fixed or discounted rate period, you might face early repayment charges (ERCs) for leaving your current deal early. ERCs are designed to cover what the lender would have earned over the course of the loan, if you hadn’t paid it off early. These costs can be substantial – often 2-5% of your outstanding mortgage balance. So it’s always worth weighing up these costs against potential savings. 

Consider all costs involved 

Beyond ERCs, you might also need to pay: 

• Arrangement fees on your new mortgage 

• Legal/conveyancing fees 

• Valuation fees (though many lenders offer free valuations) 
   

Assess your current financial situation 

Lenders will reassess your affordability, just as they did when you first bought your home. If your circumstances have changed, this could affect your options. Examples of changing circumstances include a reduction in income, and taking on more debt.  

Think about timing 

Most lenders allow you to secure a new rate months before your current deal ends, so you don’t need to wait until the last minute. Starting early gives you more options and helps you avoid falling onto an expensive SVR. 

Get professional advice 

Consider speaking to a mortgage broker who can access deals from across the market and provide personalised advice based on your circumstances. They can also help you navigate the application process and ensure you’re getting the best deal available. 

Are you ready to remortgage? 

Remortgaging is a common and practical step that many UK homeowners take to manage their mortgage costs effectively. While it requires some effort and planning, the potential savings make it worthwhile for many people. 

The key is to start exploring your options well before your current deal ends. This gives you time to research the market, understand your options, and complete the process before rolling off onto a more expensive Standard Variable Rate. 

Remember, doing nothing when your mortgage deal ends will almost certainly increase your monthly repayments, so it can be worth setting aside the time for the bit of admin that comes with remortgaging. Even if you decide to stay with your current lender by doing a product transfer, you’ll likely get a better rate than their SVR. 

Explore your options with our Remortgage Calculator

In summary: 

• Remortgaging is the term used when switching your mortgage deal to a different lender. 

• Doing nothing when your fixed-rate ends will likely mean rolling off onto your lender’s more expensive Standard Variable Rate (SVR).  

• Remortgaging can save money, offer better features, and can be an opportune time to release equity or consolidate debt.  

• Watch out for fees like early repayment charges, and consider any other associated costs. 

• Start early and consider getting advice from a mortgage broker, to secure the best deal before your current one ends. 

Please note: Your home may be repossessed if you do not keep up repayments on the mortgage. Early Repayment Charges may apply if you leave your current mortgage during the fixed-rate period. Rightmove is not authorised to give financial advice; the information and opinions provided in these articles are not intended to be financial advice and should not be relied upon when making financial decisions. Please seek advice from a regulated mortgage adviser.