How to Remortgage Your Home in the UK: Step-by-Step Guide to Saving Money

Remortgaging can be one of the smartest financial decisions a homeowner makes — whether you're looking to save money, switch to a better deal, or release cash from your property.

But the remortgaging process can be confusing if you're not familiar with how it works. With hundreds of lenders and products available, knowing when to remortgage — and how to get it right — can make a major difference to your finances.

In this guide, we explain everything UK homeowners need to know about remortgaging: why people do it, when it makes sense, how to prepare, and how to avoid costly mistakes.

What Is Remortgaging?

Remortgaging means switching your existing mortgage to a new deal — either with your current lender or a different one.

You're not moving home. You're simply changing the mortgage on your current property, which could mean:

• Getting a lower interest rate

• Fixing your payments for longer

• Borrowing more money (equity release)

• Changing the term or mortgage type

Why Do People Remortgage?

There are several reasons to remortgage — and in many cases, they result in saving thousands of pounds over the mortgage term.

1. Your Fixed Rate Is Ending

When your fixed or introductory rate ends, you usually move onto your lender’s standard variable rate (SVR) — which is almost always higher.

Switching to a new fixed or tracker deal can lower your monthly payments.

2. You Want a Better Interest Rate

If interest rates have dropped — or your credit score or Loan-to-Value (LTV) has improved — you may qualify for better rates than when you first took out your mortgage.

3. You Want to Overpay or Pay Off Faster

Some older mortgages come with restrictions. Remortgaging may allow you to:

• Make larger overpayments

• Shorten your mortgage term

• Pay less interest over the long run

4. You Want to Borrow More (Release Equity)

Remortgaging can let you borrow more money against your property’s value to:

• Fund home improvements

• Consolidate debt

• Pay for a major purchase

Note: You’ll need a strong credit profile and affordability to borrow more — and rates may be higher.

5. You’re Switching from Interest-Only to Repayment

You might want to start paying off the capital if you’re currently on an interest-only deal.

Related article:  Interest-Only vs Repayment Mortgages: Which Is Right for You?

When Is the Best Time to Remortgage?

Most homeowners remortgage when their fixed or discounted rate ends — typically after 2, 3 or 5 years.

Best time to start:

3 to 6 months before your current deal ends. This allows time to:

• Compare deals

• Apply and be approved

• Avoid rolling onto the SVR

Tip: You can usually lock in a new rate in advance, and delay completion until your old deal ends — avoiding early repayment charges (ERCs).

Can You Remortgage Early?

Yes — but you may face:

• Early repayment charges (ERCs) of 1%–5% of your loan

• Exit fees or administration fees

Early remortgaging may still be worth it if the savings outweigh the penalties — especially if interest rates are rising.

Always check your current mortgage offer for exact fees or speak to your lender or broker.

How Does the Remortgage Process Work?

Here’s what to expect when remortgaging in the UK:

Step 1: Review Your Current Deal

• When does your deal end?

• What’s your remaining balance?

• Are there ERCs or exit fees?

• What’s your current interest rate?

Step 2: Check Your Credit and Finances

• Review your credit report

• Gather payslips, bank statements, and ID

• Make sure your finances are in good shape

Step 3: Compare Remortgage Deals

You can search online or use a mortgage broker to:

• Find the best rates

• Explore fixed, tracker, or variable deals

• Check for any product or arrangement fees

Related article:  Fixed, Tracker or Variable Rate Mortgage?

Step 4: Apply for a Mortgage Offer

Submit an application with your chosen lender:

• Provide income and expense details

• Supply documentation

• Wait for the lender’s underwriting and valuation

Step 5: Conveyancing

If you switch lenders, a solicitor will handle:

• Legal paperwork

• Title checks

• Transfer of funds

(Some lenders offer free legal work with remortgage deals.)

Step 6: Completion

Once approved, the new lender pays off your old mortgage and your new repayments begin.

How Much Does Remortgaging Cost?

Costs vary — but here’s what to look for:

Potential Costs:

• Valuation fee (often free)

• Solicitor/legal fee (free with some deals)

• Arrangement/product fee (often £999+)

• Early repayment charges (if exiting early)

• Exit or admin fees (£50–£300 from old lender)

Tip: Some lenders offer fee-free remortgage deals, but be sure the rate isn’t inflated to compensate.

How Much Could You Save?

If your mortgage balance is £200,000 and you’re currently paying 6.5% on your SVR, switching to a 5% deal could save you over £1,500 a year — even after fees.

Use the MoneyHelper Mortgage Calculator to compare savings.

Can You Be Rejected When Remortgaging?

Yes — lenders still run affordability and credit checks.

You may struggle to remortgage if:

• Your income has dropped (e.g. maternity leave, redundancy)

• You’ve built up debt or missed payments

• Your property value has fallen

• You’ve become self-employed with limited income history

In this case, speak to a whole-of-market mortgage broker who can find more flexible lenders.

Related article:  Can You Get a Mortgage If You’re Self-Employed?

Unique Insight: Don’t Assume Staying With Your Lender Is Best

Your current lender may offer a product transfer — switching to a new deal without credit checks or legal work.

While this is faster and easier, it’s not always the cheapest.

Always compare product transfer rates to other lenders. A broker can help you check both options side by side.

FAQs: Remortgaging in the UK

Can I remortgage if my house has gone up in value?

Yes — and it can work in your favour. A higher property value improves your Loan-to-Value (LTV) ratio, potentially unlocking lower rates.

How soon can I remortgage after buying a property?

Some lenders allow remortgaging after 6 months, but most require 12 months. Check your mortgage terms and speak to a broker if unsure.

Can I remortgage to release equity?

Yes — this is known as equity release remortgaging. You borrow more against your home’s value and receive the difference as cash.

Use with caution — your repayments and total interest will increase.

Do I need a solicitor to remortgage?

Only if switching lenders. If you stay with your current lender, you may not need legal work. Many remortgage deals include free legal services.

Can I remortgage if I have bad credit?

Yes — but options may be limited. You may face higher interest rates or need a larger deposit/equity share. A broker specialising in adverse credit can help.

Related article: Can You Get a Mortgage with Bad Credit?

Final Thoughts: Is Now the Right Time to Remortgage?

Remortgaging isn’t just for savvy investors — it’s for anyone who wants to stop overpaying or take better control of their mortgage.

Whether your deal is ending, you want to reduce your term, or you need to borrow more, a well-timed remortgage could save you thousands.

But timing, preparation, and the right lender all matter. Don’t rely solely on comparison sites — speak to an FCA-authorised broker for tailored advice, especially if your situation isn’t straightforward.

You can check any lender or broker’s credentials at the FCA Register.

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Please note:  All content on SmartWithMoney.co.uk is for informational purposes only and does not constitute financial advice. Always seek guidance from a qualified financial adviser before making any financial decisions.