When and Why Should I Remortgage?

When to remortgage usually comes down to timing: most people look at it as their current fixed or discounted deal is coming to an end. That’s when you can usually switch without an early repayment charge, and before you move onto your lender’s standard variable rate, which is usually higher.

This guide explains the most common reasons to remortgage, the best time to start looking, when it may not be worth it, and what it can mean for your credit file.

What does remortgaging mean?

Remortgaging means replacing your current mortgage deal with a new one on the same home. You don’t usually move house or change the amount you owe, although some people do borrow more at the same time.

When your deal ends, you generally have two choices. You can move to a different lender, which is usually what people mean by remortgaging. Or you can take a new deal with your existing lender, which is called a product transfer. MoneyHelper describes both as the two main options when a deal ends.

If you do nothing, your lender will normally move you onto its standard variable rate (SVR). This is the lender’s own default rate, and it’s usually higher than the deals on offer to new and existing customers. Because an SVR can change at any time, your payments can be less predictable too. Our guide to what happens when your fixed rate ends explains this in more detail.

When to remortgage: the best time to start looking

For most people, the natural time to remortgage is when their current deal is ending. Until then, many deals carry an early repayment charge (ERC) if you leave early.

The good news is that you don’t have to wait until the last minute. MoneyHelper says you can usually apply up to six months before the new deal starts, and Experian notes that some lenders let you lock in a new deal up to six months ahead. That gives you time to compare options and get any paperwork together without a rush.

A simple timeline many homeowners find helpful:

1. About six months before your deal ends: find your end date and check your mortgage statement for any early repayment charges and the balance left.
2. Three to six months before: compare a product transfer with your current lender against deals from other lenders, including any fees.
3. Once you’ve chosen: secure the new deal so it starts as your current one ends, rather than letting your mortgage drift onto the SVR.

If you’re not sure when your deal ends, it’s usually on your annual mortgage statement or your lender’s online account. Our free fixed-rate reminder can email you 6, 3 and 1 month before your end date, so the timing doesn’t slip by.

7 common reasons to remortgage

Ending a deal isn’t the only reason people remortgage. Here are the most common ones. Whether any of them apply to you depends on your circumstances.

1. Your fixed or discounted deal is ending

This is the most common reason by far. Moving to a new deal can avoid a move onto the lender’s SVR. Our new payment calculator shows how your monthly payment could change at a different rate, using your own figures.

2. You could get a lower rate

Rates change over time, so the deals available now may be cheaper than your current one. MoneyHelper notes that a better deal could save you hundreds of pounds, although any fees and charges need to be part of the comparison.

3. Your loan-to-value has dropped

Your loan-to-value (LTV) is the size of your mortgage compared with your home’s value. As you pay your mortgage down, and if your home has gone up in value, your LTV may have fallen into a lower band. In general, a lower LTV can open up more deals. You can check yours with our loan-to-value calculator, and our guide to how much deposit you need explains how LTV bands work.

4. You’d like more certainty, or more flexibility

Some people remortgage to move from a variable rate to a fixed rate, so their payments stay the same for a set time. Others want a deal with fewer restrictions. Our guide to fixed, variable and tracker mortgages explains the differences.

5. You’d like to overpay more

If you’re planning to pay your mortgage off faster, a deal with a bigger overpayment allowance, or none at all, may suit you. Our overpayment calculator shows how much interest and time overpaying could save.

6. You’d like to change the term or repayment type

Remortgaging can be a chance to change how long your mortgage runs or to move from interest-only to repayment. A longer term can lower monthly payments but usually means paying more interest overall.

7. You need to borrow more

Some people remortgage to raise money, for example for home improvements. Borrowing more increases your debt and your LTV, and spreading other debts over a mortgage term can mean paying more interest in total. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.

When remortgaging may not be worth it

Remortgaging isn’t always the right move. MoneyHelper highlights a few situations where it may cost more than it saves:

• You’d pay an early repayment charge. If your deal hasn’t ended, an ERC can wipe out the saving from a lower rate.
• The fees outweigh the saving. Arrangement, valuation, legal and administration costs can make switching more expensive than staying put.
• Your balance is small. With a smaller mortgage, the saving from a lower rate may be too low to cover the fees.
• You’re planning to move soon. Locking into a new deal with large early repayment charges could be costly if you sell before it ends.

Illustrative example of a small balance: on a £30,000 mortgage, a rate that’s 1 percentage point lower saves roughly £300 of interest in the first year (£30,000 × 1%). A £999 arrangement fee would take more than three years to recover. Figures are illustrative only and simplified; the real saving falls as the balance is paid down.

Your circumstances matter too. If your income has dropped or your credit history has changed since you took out your current mortgage, a new lender’s affordability and credit checks may be harder to pass. In that case, a product transfer with your current lender may still be an option, as it can involve fewer checks.

What you’ll need to remortgage with a new lender

Switching to a new lender works much like your original mortgage application, so it helps to have your paperwork ready early. MoneyHelper’s guide to applying for a mortgage lists documents lenders commonly ask for, including:

• your passport or driving licence, to prove your identity
• your last three months’ payslips and your P60
• bank statements for your current account for the last three to six months
• if you’re self-employed, two to three years’ accounts from an accountant and your SA302 tax calculations
• proof of any benefits you receive

Some lenders may ask for more. You’ll also want your current mortgage details to hand: the balance, the rate, your deal’s end date and any early repayment charge. Your latest mortgage statement usually shows all of these.

Common remortgage mistakes to avoid

A few simple slips can cost more than they need to. These are some of the most common:

• Leaving it too late. If a new deal isn’t in place when your current one ends, you’ll usually move onto the SVR until it is.
• Looking only at the rate. A deal with a low rate but a large fee can cost more overall than one with a slightly higher rate and no fee, particularly on a smaller balance. Comparing the total cost over the deal period gives a fairer picture.
• Missing an early repayment charge. Check exactly when your current deal ends, so a new one doesn’t start a few days early and trigger a charge.
• Applying for other credit at the same time. New credit cards or loans just before a mortgage application can affect your credit file and the lender’s view of your budget.
• Extending the term without realising the cost. A longer term lowers the monthly payment but usually increases the total interest you pay.
• Forgetting your future plans. If you might move or repay a lump sum soon, check the new deal’s early repayment charges and overpayment rules first.

How much could you save by remortgaging?

The saving depends on your balance, your current rate, the new rate, the fees and how long you have left. Here’s an illustrative comparison of a mortgage moving onto an SVR against a new deal:

Illustrative only. These rates are examples, not current market rates. Payments are for a repayment mortgage, worked out with the standard monthly repayment formula, and assume the rate stays the same. Fees and charges aren’t included.

To compare using your own numbers, try our new payment calculator. Remember to set any fees against the monthly saving.

Remortgaging when your circumstances have changed

Life rarely stands still over a two- or five-year deal. If something has changed since you took out your current mortgage, it can affect your options when the deal ends.

• Your income has gone down, for example after going part-time, a career break or retirement. A new lender will look at what you can afford now, which may limit how much you can borrow or which deals you can get.
• You’ve become self-employed, or your income now varies. Lenders usually want to see a track record of your earnings, often through accounts and tax calculations.
• Your credit history has changed, such as missed payments or new debts. This can narrow the choice of lenders.
• Your relationship has changed, and someone needs to come off the mortgage or buy the other person out. This usually needs the lender’s agreement and a fresh affordability check for whoever stays.

In some of these situations, a product transfer with your current lender may still be available, because it may not need a full affordability check. An FCA-authorised mortgage adviser can look at what options may be open to you. If you’re struggling with payments, MoneyHelper has free guidance, and it’s worth talking to your lender early.

Does remortgaging affect your credit score?

It can, a little. When you apply to a new lender, it will usually run a hard credit search, which shows on your credit report. Equifax explains that a series of hard searches in a short period may negatively affect your score, as it can look like you need to borrow often.

A few things may help keep the impact low:

• Use eligibility tools that run a soft search while you’re still comparing. Equifax says a soft search is unlikely to affect your score and isn’t visible to lenders.
• Avoid applying for other credit, such as loans or credit cards, in the months around your mortgage application.
• Check your credit report before you apply, so you can correct any mistakes.

A product transfer with your current lender may not need a full affordability check, as Experian notes, so it can be simpler. But your current lender may not offer the lowest rate available, so it’s usually worth comparing both.

Product transfer or remortgage with a new lender?

Both can get you off the SVR. The main differences are:

An FCA-authorised mortgage adviser can compare both routes for your circumstances if you’d like a personal recommendation.

Summary

The usual time to remortgage is as your current deal ends, and many lenders let you secure a new deal up to six months ahead. People also remortgage to get a lower rate, take advantage of a lower LTV, change their term or borrow more. Whether it’s worth it depends on the fees, any early repayment charge, your balance and your circumstances.

Sources

• MoneyHelper – Remortgaging to get the best deal
• MoneyHelper – Can I change my mortgage provider?
• MoneyHelper – Help with mortgage payments
• Experian – What happens when my fixed rate mortgage ends?
• Equifax – What is a hard credit search?
• MoneyHelper – How to apply for a mortgage
• Equifax – What is a soft credit search?

Last updated: 27 October 2026. This guide is general educational information only and is not regulated financial advice.