When you remortgage your property, timing is everything. There are significant benefits to be had from remortgaging in the right circumstances. However, it’s also important to know when it’s probably not the best time to switch mortgage deals.
In this article, we look at remortgaging in detail, from what it actually means and when is the best time to do it is, to how to compare remortgage rates and find the best deals available to you.
Remortgaging is simply switching to a different mortgage deal. This might be a new deal with an entirely different lender, or a different deal with your current lender, which is called a product transfer.
A product transfer is often quicker and easier than a full remortgage, given that you’re not switching lenders. However, it won’t always give you the best rate available, as many lenders keep their most competitive rates for new customers.
It’s always a good idea to compare remortgage rates across the market before you decide which remortgage deal is best for you. As a whole-of-market mortgage broker, we can help you to do so quickly and easily - speak to a friendly adviser to learn more.
There are a few reasons that people might consider a remortgage, which we’ll go into in greater detail later. In the simplest terms, however, people tend to remortgage to either:
In some cases, you might even remortgage to achieve all 3.
Remortgaging involves applying for a new mortgage deal, similar to the process when you took out your original mortgage. The process and how long it takes to complete will depend on whether you stay with your current lender or switch to a different one.
Moving to another mortgage deal with the same lender (a product transfer) is usually a bit easier, as your current lender knows everything they need to know about you and your property already. This means that most product transfers won’t involve any additional legal work, surveys, or fees.
On the start date of your new deal, your lender simply transfers you from the old deal to the new one, and you start repaying your mortgage with the new terms.
If you intend to borrow more money or change any of the terms of your mortgage, such as the length of the term, your current lender will likely treat the application more like a full remortgage with a new lender.
Remortgaging with a different lender is more like being a first-time buyer, as you’ll need to submit your up-to-date proof of income, bank statements, etc and undergo a new credit check.
The new lender will usually want to arrange a property valuation to check that your home is worth what you’re remortgaging it for. This means you’ll most likely need a conveyancer to handle the legal changes.
When the process is complete, your new mortgage provider will pay off your old mortgage, and you’ll start making your new monthly repayments to them on the new set of terms. The whole process can typically take around 4-8 weeks, but if you’re saving money, it’ll all be worth it in the end.
If you’re not sure whether to stay put or move to a new lender, we can help you find the best remortgage deal for your situation.
Lenders base how much they’re willing to lend you on risk, no matter whether you’re getting a new mortgage or remortgaging. With your first mortgage, your deposit balances some of the risk, as you are personally invested in the property. With a remortgage, your equity - the amount of the property that you own outright - is usually used in the same way as a deposit.
This means you won’t usually need to fork out any cash to remortgage, but how much equity you have impacts what interest rates are available to you. Your current LTV will show how much equity you have in your property.
The LTV is the percentage of your property that is financed by your mortgage. For example, if you had a 90% LTV mortgage, you would have used a 10% deposit and borrowed 90% of the property value.
Generally, your LTV reduces as you repay your mortgage; however, the value of your property also affects it. So, for example, if your property value rises, the LTV goes down, as you’ll then be borrowing a lower percentage of the new property value. If your property value falls, however, your LTV can increase, even though you’re still repaying your loan.
Lenders offer lower interest rates, the less risky your remortgage application, so those with the lowest LTV are likely to get a cheaper remortgage deal.
If your property value falls significantly, you could potentially end up owing more than the current value of your property - which is known as negative equity. Lenders are unlikely to approve a remortgage application while you are in negative equity.
To work out your LTV you’ll need to know what your property is currently worth, so you’ll need to get a valuation. A new lender will automatically organise this as part of the remortgage process, but if you want to know beforehand, most estate agents are able to provide you with an estimate and will often do so free of charge.
Then do the sum - outstanding mortgage loan divided by the current property value, and then x 100. This will give you your current LTV.
We always recommend starting the remortgage process around 6 months before your fixed rate deal ends. This is because when your current deal ends, you automatically fall onto your lender’s SVR (standard variable rate), which is typically their most expensive rate.
Many lenders also allow you to lock in a new mortgage deal 3-6 months before your existing deal ends, meaning you’ll automatically transfer to the new deal, rather than having to scramble to remortgage before your SVR kicks in.
Beginning your search for a new deal 6 months early gives you a chance to have a look at what deals are available on the market - a broker like ourselves can speed this process up for you significantly.
The best bit is, in many cases you’re not committed to a new remortgage deal until it begins, meaning you may be able to switch to a better deal if one becomes available before your current deal ends. However, this can vary between lenders, and some may apply early repayment charges or restrictions once an offer is accepted, so it’s important to check the terms carefully before proceeding.
The most common reason to remortgage is because a current mortgage deal is ending, but there are a whole host of reasons that you might want to remortgage your property:
The vast majority of mortgage deals have relatively short lifespans, with 2,3 and 5 years being the most common. Those that choose not to remortgage when their deal ends will end up on the SVR of their current lender. The SVR is not a deal rate, so it has no end date and you’re not tied in, but it’s usually much more expensive than lenders’ other deals. Switching to a new deal will normally be cheaper than staying on an SVR.
It’s not so common in the current market that you’ll see a mortgage deal significantly lower than the one you took out a few years ago. As of April 2025, rates are generally higher than they were 3-5 years ago, although they have started to reduce gradually. That said, in a very competitive market, it’s possible that you’ll see a deal worth remortgaging for, that would save you considerable money each month. Keep in mind, however, that ERCs (early repayment charges) are usually payable if you leave a deal before it ends.
If your original mortgage terms no longer work for you, then you might remortgage to a deal with more suitable terms. Maybe you want to switch from a tracker deal to a fixed-rate mortgage for greater peace of mind that your repayments won’t rise, or you might want to increase or reduce your mortgage term.
Perhaps you’re looking for a more flexible mortgage deal, with the ability to overpay your mortgage without penalty, or to reduce the amount of interest you pay overall, by utilising your savings with an offset mortgage. No matter the reason, remortgaging onto a new deal could help you attain the terms you’re looking for.
Note: If you’re looking to change your repayment method from interest-only to capital repayment, it’s usually possible to do this without remortgaging. However, if you want to swap repayment types in the opposite direction, you likely will.
Some people remortgage to release equity in their property. This is essentially re-borrowing some of the money you’ve already repaid and can often be used for a wide number of purposes, from home improvements to providing a deposit to help your children or grandchildren get onto the property ladder.
It’s important to realise that this will increase your monthly mortgage payments rather than reduce them, as your loan size and LTV will increase. However, as mortgage interest is often lower than other loans, it can be a good way to utilise your equity.
Because of how beneficial a lower LTV can be in getting a competitive mortgage interest rate. When you first took out a mortgage, it was based on the value of your property at the time. If the value of the property has risen significantly since then, you own more equity in your home. This means it’s certainly worth checking out the mortgage rates that are now available to you.
LTV is usually looked at in bands by lenders, so, for example, anything above 85% LTV is typically considered to be high, whereas anything under 50% is usually considered low. If your LTV has fallen enough to push you into a lower band, the savings can be significant.
If you’ve read right from the top of this article (firstly, well done!), you’ll remember that we mentioned how timing is an important element of remortgaging. We’ll now explain why and highlight a few scenarios where remortgaging might not make sense for the time being:
If your finances or credit score are in worse shape than when you took out the mortgage, it may be difficult to remortgage. It won’t always be impossible, but keep in mind that affordability and credit score are reassessed when you remortgage.
It’s a good idea to check your credit status with Experian, Equifax, and TransUnion if you think you may have credit issues. A low credit score can impact the rates available to you, as lenders need to be confident in your ability to keep up with repayments.
Also, keep in mind that even if your equity puts a good dent in the loan size, you may struggle to meet affordability if your income has fallen. Even more so if your interest rates are higher due to a low credit score.
If you’ve recently changed career, especially if you’ve moved from being employed to self-employed, full-time to part-time, or entered long-term leave, such as parental leave or sick leave, it can be more difficult to qualify for a remortgage.
Again, it’s not necessarily impossible, so do speak to a broker to see where you stand; however, keep in mind that the interest rates available may not be favourable if you’re seen as high-risk by lenders.
Most people remortgage when they have come to the end of their previous mortgage deal, but if your deal has not yet ended, there are likely to be early repayment charges and potentially exit fees payable to leave early. The fees associated with leaving a deal early usually reduce the closer you are to the end date.
Unless you’re confident that the benefits of a new deal outweigh the costs of leaving your current one early, then it’s probably not the best time to remortgage. If you’re already on an SVR (standard variable rate), then you won’t need to worry about exit fees.
The amount of equity you hold in your home will be a big factor in whether now is the right time to remortgage. If you have gained very little due to only having repaid the mortgage for a short time, then it can be harder, as many lenders have a minimum equity level, similar to minimum deposit requirements.
Equally, if your property has fallen in value since you bought it, then you may have low equity, or potentially less equity than you began with, even if you’ve been making your repayments. In this case, you’re unlikely to be accepted for a remortgage, particularly if you’re in negative equity - where you owe more than your home is currently worth.
Usually, you’ll need to wait until you have a reasonable amount of equity to remortgage - most lenders will be looking for around 10% as a minimum.
If it’s the right time for you, then remortgaging can be beneficial - especially if you’re about to fall onto your lender’s SVR. Individual savings will vary depending on your circumstances, so try our handy remortgage calculator to see how much you may be able to save.
If you’re unsure whether remortgaging is worth it for you right now, your friendly Habito mortgage expert will compare remortgage rates and deals to help you figure out if it’s cheaper to switch or stay put, taking any legal costs or fees into account.
*Source: Habito data
You can remortgage whenever you like, assuming you’re able to qualify, but it’s best to start the remortgage process around 6 months before your existing deal ends. This allows plenty of time for the deal to be finalised before you fall onto your lenders’ SVR, but with the confidence that you’re not locked into a new deal until your old one ends.
It’s not essential to use a mortgage broker to remortgage, but it can be a good idea. At Habito, we look at all the costs of remortgaging combined, including things like fees assisted legal work, to work out which is the best deal for you.
Get started for free with Habito.
Absolutely, any property can be remortgaged. If you have a buy-to-let mortgage, then you’ll also need a buy-to-let remortgage when your deal ends, just like residential customers.
You’ll need to meet the same criteria, but lenders will additionally check that the rent you’re charging is suitable and that you’re turning enough profit to make your repayments.
You can learn more about remortgaging your buy-to-let in our dedicated article.
It’s sometimes possible, although most mortgages will charge you a substantial fee for exiting the deal early. In today’s market, the rates available don’t generally warrant jumping from one deal and paying exit fees, as you won’t save money by doing so; however, this isn’t always the case. It’s a good idea to check with a broker before making this type of decision, either way.
Remortgaging can take up to 8 weeks unless there are delays, which is why we recommend starting to look for your next mortgage around 6 months before your existing fixed rate period ends!
If it’s the right time, we’ll get it done - quickly, simply, and for free.
If you’re remortgaging to a new lender, then yes, you’ll most likely need a conveyancing solicitor to do the paperwork for that.
If you’re remortgaging with the same lender (a product transfer), then you probably won’t need a conveyancing solicitor.
Remortgage costs vary depending on the reason for your remortgage and whether or not you’re moving to a different lender. However, lots of remortgage deals come packaged with a free valuation and fees assisted legal work.
The majority of remortgages have an arrangement fee, similar to your original mortgage, but you can often choose to add this to your mortgage balance. Keep in mind that this means it would gather interest and could also impact the LTV of your borrowing.
Although remortgaging usually involves some costs, you often save money in the long run by not slipping onto your lender’s standard variable rate.
It depends how bad your credit issues are, because mortgage approval is based on risk, whether you’re taking out your first mortgage or remortgaging. In some cases, it may be possible to remortgage with minor bad credit; however, this won’t get you the cheapest rates available.
The reason for your bad credit can also be a factor, and lenders are less likely to approve a remortgage if your poor credit is due to late and missed mortgage payments, for example.
What is a remortgage? (hub page)
When you remortgage your property, timing is everything. There are significant benefits to be had from remortgaging in the right circumstances. However, it’s also important to know when it’s probably not the best time to switch mortgage deals.
In this article, we look at remortgaging in detail, from what it actually means and when is the best time to do it is, to how to compare remortgage rates and find the best deals available to you.
Land mortgages are a more specialist area of borrowing than property mortgages, but they are certainly available. While you won’t usually find mainstream lenders offering land mortgage products, it’s perfectly possible to find a suitable lender with the help of a specialist mortgage broker, like ourselves.
Being green has never been so easy
Here we’ll explain when you can remortgage, when you should start the process, and share a few examples of when it might not make sense.
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