Remortgaging is one of the easiest ways to save serious money as a homeowner, yet many people leave it too late and end up drifting onto an expensive standard variable rate. Others remortgage at the wrong time, pay unnecessary charges, or choose a deal that looks cheap on paper but becomes costly once fees and restrictions are included.
This guide is designed to make remortgaging feel simple and predictable.
You will learn what remortgaging actually is, the best time to start, what fees to watch, what lenders check, and a step by step process you can follow. At the end, you will get a clear checklist you can use every time you remortgage.
If you have read the earlier posts on credit score and mortgage affordability, this is where it all comes together in the real world.
What Remortgaging Means And Why It Matters
Remortgaging means switching your mortgage deal. You can do this in two main ways:
- Switching to a new deal with your existing lender (often called a product transfer)
- Switching to a new lender (a full remortgage)
The core reason people remortgage is simple: your current deal ends and you want to avoid paying more than you need to.
Why your mortgage suddenly gets more expensive
Most mortgages start with an introductory deal, often a fixed or tracker rate for a set period. When that period ends, many borrowers move onto the lender’s standard variable rate. This rate is often higher than the best deals available.
If you do nothing, you can end up paying hundreds more each month than necessary.
Remortgaging is not only about rate shopping
A smart remortgage can help you:
- reduce monthly payments
- shorten your mortgage term
- move to a more flexible deal that supports overpayments
- switch from a tracker to a fixed rate or the other way around
- borrow extra money for home improvements (with care)
In other words, remortgaging is a chance to optimise your mortgage for your life, not just chase the lowest number.
Product transfer vs switching lenders
A product transfer can be quicker and easier because you stay with the same lender. It may involve fewer checks.
A full remortgage can sometimes unlock better deals, but it may include:
- a full affordability assessment
- property valuation
- legal work
Your best route depends on your circumstances and how competitive your current lender is.
When You Should Start Looking And The Best Time To Remortgage
Timing is everything with remortgaging. Start too late and you lose your best options. Start too early and you might face early repayment charges.
The golden window for most people
A practical rule that works for many homeowners is:
Start looking around 6 months before your current deal ends.
Why so early?
- many lenders let you secure a deal in advance
- you can switch later if something better appears
- it gives you time to organise documents and fix issues
- it reduces the risk of rolling onto the standard variable rate
Even if you cannot lock a deal in that early with your chosen lender, starting early means you are never rushed.
What happens if you remortgage too early
The main risk is early repayment charges. Many fixed deals have charges if you leave before the deal ends.
This is why you must know:
- when your current deal ends
- what the early repayment charge would be
- whether the saving from switching outweighs the charge
If the charge is large, the smartest move is often to line up a remortgage for the moment the charge disappears.
Should you remortgage when rates fall
If rates fall and you are already on a fixed deal, it can be tempting to switch early. The question is always:
Is the saving bigger than the early repayment charge and fees.
If not, you wait.
Should you remortgage when rates rise
When rates rise, some people panic and lock into a long fixed deal without checking whether it suits their timeline.
The better approach is to focus on your household budget:
- what payment can you live with comfortably
- what payment would stretch you
- how stable is your income
- how likely are you to move soon
A “perfect rate call” matters less than choosing a deal you can actually stick with.
Special timing situations
Remortgaging may be different if you:
- are self employed and your income has changed
- have taken on new debt since your last mortgage
- have had a credit issue such as missed payments
- have moved from two incomes to one
- are planning to move home soon
In those cases, you might prefer a product transfer with your current lender if it avoids tougher checks, but it depends on the lender.
The Real Costs Fees And Charges To Watch
Many people compare mortgages only by the interest rate. That is a mistake. The total cost is what matters.
Here are the main costs you need to understand.
Product fees
Some deals have a product fee, sometimes a large one. A lower rate with a high fee can be worse value than a slightly higher rate with no fee.
A simple way to compare:
- calculate the cost difference in monthly payments over the deal period
- add the product fee
- include any legal and valuation costs if switching lenders
For smaller mortgages, high product fees can be poor value.
Early repayment charges
If you leave your current mortgage deal early, you may pay an early repayment charge.
This is the biggest remortgage trap.
Always check:
- how much the charge is
- how long it applies for
- whether it reduces as you get closer to the end date
Valuation fees
If you remortgage to a new lender, you may need a valuation. Some lenders offer free valuations, some charge.
The valuation affects:
- your loan to value
- the rate you qualify for
- sometimes whether the lender will proceed
Legal fees
A remortgage usually involves legal work. Some lenders offer free legal services as part of the deal. Others expect you to pay.
Always check whether “free legals” includes everything or only basic work.
Broker fees
Some brokers charge a fee. Some do not. A good broker can still be worth it if they:
- access better deals
- guide you away from expensive mistakes
- save you time and stress
If a broker fee feels high, ask what you get for it and whether the fee is refunded if the remortgage does not complete.
Fees for borrowing extra
If you are remortgaging to borrow extra money, be careful. It can be sensible for essential improvements, but it can also increase risk.
Make sure you understand:
- the new monthly payment
- the new total interest over the term
- whether the extra borrowing is truly worth it
Overpayment rules and flexibility
A mortgage is not only a rate. It is a set of rules.
If you plan to overpay, check:
- how much you can overpay each year without penalties
- whether overpayments reduce the term or monthly payment
- whether there are restrictions during the deal period
Flexibility can be worth more than a tiny rate difference.
How Lenders Assess You Now Affordability Credit And Property Checks
Remortgaging is not always automatic. If you switch lenders, you may be assessed almost like a new borrower.
Affordability checks
Lenders assess your ability to pay based on:
- income and stability
- debts and commitments
- household costs
- stress testing at higher rates
If your income has fallen or your commitments have increased, the lender may offer less than you expect or decline the application.
This is why cleaning up finances before remortgaging is so powerful.
Credit profile and recent behaviour
Mortgage lenders tend to dislike:
- lots of recent credit applications
- high credit card balances
- missed payments
- heavy overdraft reliance
- messy address history
If your remortgage is approaching, it helps to keep the last few months of your finances calm and predictable.
Loan to value changes
Your loan to value can improve over time as:
- you pay down the mortgage balance
- the property value increases
A better loan to value can unlock better deals.
Even small jumps in loan to value can matter. That is why some homeowners:
- make a lump sum payment before remortgaging
- time remortgaging after improvements that increase value
- avoid borrowing extra if it worsens the loan to value bracket
Property issues
Sometimes a remortgage is blocked by the property, not you.
Potential blockers include:
- unusual construction types
- short lease length on a flat
- issues identified at valuation
- building safety concerns
If you suspect your property is non standard, a broker can help identify lenders more likely to accept it.
Why product transfers can be easier
If your situation has changed and you worry about affordability checks, your current lender may offer product transfers with fewer hurdles.
This is not always true, but it is a common reason people stay with their lender even if a new lender is slightly cheaper.
Step By Step Remortgaging Process From Quote To Completion
Here is a clean process you can follow.
Step 1 Check your current deal end date and charges
Before you do anything, find out:
- when your current deal ends
- whether early repayment charges apply
- what the standard variable rate would be after the deal
This tells you your deadline and your risk if you do nothing.
Step 2 Check your rough loan to value
Estimate:
- current mortgage balance
- approximate property value
This gives you a loan to value estimate which helps you shop the right deals.
You do not need perfect accuracy at this stage. You need a realistic range.
Step 3 Decide what you want from the remortgage
Choose your main goal:
- lowest monthly payment
- payment stability
- flexibility for overpayments
- shorter term
- borrowing extra for improvements
When you know your goal, you avoid choosing a deal that looks good but does not fit your plan.
Step 4 Compare options with your lender and the wider market
Get options from:
- your current lender
- a broker or comparison tools for new lenders
Often the best option is not obvious until you compare properly, including fees.
Step 5 Apply and prepare documents
If switching lender, you will likely need:
- proof of income
- bank statements
- details of commitments and debts
- property and mortgage details
Keep everything organised. Slow paperwork is one of the biggest causes of stressful delays.
Step 6 Valuation and legal process
The lender will value the property. Legal work will be completed to move the mortgage.
Your job is to respond quickly if anything is requested.
Step 7 Completion and confirm the new payment
When complete:
- confirm the new direct debit amount
- confirm the first payment date
- check any fees that were added to the mortgage
- set a reminder for when this new deal ends
The last step is important. Remortgaging is a cycle. You want to be early every time.
A Simple Remortgage Checklist And Common Mistakes
Here is a practical checklist you can copy into your notes.
Remortgage checklist
- Check current deal end date
- Check early repayment charges
- Check standard variable rate risk
- Estimate loan to value
- Decide your goal and deal preference
- Compare total cost including fees
- Check overpayment rules and flexibility
- Avoid new credit applications near remortgage time
- Reduce credit card balances if possible
- Organise income and bank statement documents
- Apply early to avoid deadline stress
- Confirm completion details and direct debit
- Set a reminder for the next deal end date
Common remortgage mistakes
Waiting until the last month
This is how people end up on expensive standard variable rates. Starting early removes pressure.
Choosing purely on rate
A slightly lower rate can be beaten by a high product fee or harsh early repayment charges.
Forgetting affordability has changed
If you have taken on new commitments, your options may be different. Plan for this early.
Borrowing extra without a plan
Extra borrowing can be sensible for essential improvements. It can also create long term cost for short term wants.
Always run the numbers:
monthly payment, total interest, and whether the improvement adds value or quality of life.
Not checking overpayment limits
If you plan to overpay, choose a mortgage that allows it without penalties. Overpayments can change your mortgage timeline dramatically.
FAQs
Is it worth paying a remortgage fee
Sometimes yes, sometimes no. It depends on your mortgage size and the savings over the deal period. Always compare total cost, not the headline rate.
Can I remortgage if my credit score dropped
Possibly. What matters is the details of your credit file and affordability. If a full remortgage is difficult, a product transfer with your lender may be easier.
How early can I lock in a remortgage deal
This varies by lender. Many allow you to secure a rate in advance. The safest approach is to start looking early and choose a deal that aligns with your current deal end date.
Should I remortgage if house prices fell
It depends. If your loan to value worsened, deals may be less competitive. In that case, a product transfer might be a smoother option until loan to value improves.
Disclaimer
This article is for educational and informational purposes only and does not constitute mortgage advice, financial advice, or a recommendation to use any specific lender or product. Mortgage rates, fees, and eligibility criteria change and depend on your circumstances. Consider speaking with a regulated mortgage adviser or broker for personalised guidance.