Remortgaging 101: What It Means and When to Do It

Learn what remortgaging really means, when to do it, and how to make sure you’re getting the best deal for your home and finances.

Thinking about remortgaging but not entirely sure what it involves? You’re not alone. Whether your fixed rate is ending, or you’re simply wondering if you could be getting a better deal, understanding how remortgaging works can make a real difference to your monthly payments - and your long-term plans.

In this guide, we’ll break down what remortgaging actually means, why people do it, and when the right time might be for you. By the end, you’ll know how to approach your next mortgage decision with clarity and confidence.

What Does Remortgaging Actually Mean?

Remortgaging simply means switching your existing mortgage to a new one - either with your current lender or a different one. You’re not moving house or taking out a second loan; you’re replacing your current deal with a new one that (ideally) better suits your situation.

Most people look at remortgaging when their fixed or discounted rate is ending. When that happens, your lender usually moves you onto their Standard Variable Rate (SVR), which is often higher. That’s where a new deal can save you money.

Why Do People Remortgage?

There are a few key reasons homeowners choose to remortgage - and it’s not always just about getting a lower rate. Here are some of the most common motivations:

• To avoid moving onto a higher Standard Variable Rate (SVR)
• To reduce monthly repayments with a better rate
• To release equity (for home improvements, debt consolidation, or big purchases)
• To change the mortgage term or type (for example, from interest-only to repayment)
• To add or remove someone from the mortgage

The best reason for you will depend on your goals. A broker can help you weigh up your options and understand the costs or benefits of each route.

When Is the Right Time to Remortgage?

Timing matters. Ideally, you should start reviewing your mortgage around **six months before your current deal ends**. That gives you time to compare rates, secure a new offer, and line everything up so there’s no gap between your current deal ending and the new one beginning.

If you leave it too late, you could automatically move onto your lender’s higher SVR, meaning your payments may jump before your new deal is ready. Planning ahead can help you avoid that.

On the other hand, remortgaging too early could trigger early repayment charges (ERCs). These can be expensive, so it’s important to check your current mortgage offer for any exit fees before making a move.

How the Process Works

The process is straightforward once you know what to expect. Here’s a step-by-step look at how it works:

1. **Review your current deal** – Check when your fixed rate ends, your balance, and any fees.
2. **Speak to a broker** – They’ll compare what’s available across lenders to find the most suitable deal for you.
3. **Submit your application** – Similar to your first mortgage, you’ll need to provide income details and documents.
4. **Valuation and offer** – The new lender values your property and issues an offer.
5. **Legal work** – Usually handled by solicitors, though many remortgage deals include free legals.
6. **Completion** – Your new mortgage replaces your old one, and any surplus funds (if releasing equity) are paid out.

The whole process typically takes **four to eight weeks**, depending on your lender and circumstances.

Common Mistakes to Avoid

Remortgaging can be a smart move, but there are pitfalls to watch for. Here are some of the most common mistakes people make:

• Leaving it too late and ending up on a higher SVR
• Focusing only on rate and ignoring fees or term length
• Overestimating affordability when releasing equity
• Forgetting to review protection policies alongside the mortgage

A good broker will help you avoid these and make sure your new mortgage aligns with your wider financial picture - not just your headline rate.

What Happens After You Remortgage?

Once your new mortgage completes, your old one is paid off in full. You’ll then start making payments to your new lender, usually under a better rate or more suitable terms.

It’s also a good time to review your protection cover to make sure it still fits your needs. Life changes - your mortgage deal should too.

Your Next Steps

If your deal is ending soon, or you simply want to check whether you could save, it’s worth having a chat. A quick review could help you avoid paying more than you need to.

Ready to get started? Book a chat today and let’s make sure your next move makes sense.

Your home may be repossessed if you do not keep up repayments on your mortgage or other loan secured against it.

• How soon can I remortgage before my deal ends?

  Most people start looking around six months before their current deal finishes. That gives time to secure a new offer and avoid moving onto the lender’s SVR.

• Will I have to pay fees to remortgage?

  Some deals include free valuation and legal work, but there may still be arrangement fees or early repayment charges depending on your current mortgage.

• Can I remortgage if my income has changed?

  Yes, but lenders will reassess affordability based on your current circumstances, including any changes to income, debts, or dependants.

• What if my property’s value has gone up?

  If your home’s value has increased, you might qualify for a lower loan-to-value bracket, which could give access to better rates.

• Can I release equity when I remortgage?

  Yes, if you have built-up equity in your home, you can release some of it to fund projects or consolidate debt - but it’s important to consider the long-term impact.