If your fixed rate mortgage is ending soon, you’re far from alone. Millions of UK homeowners are facing the same decision right now, and getting it right could save you thousands. This guide explains how remortgaging work in practice, when to act, and how to compare remortgage deals so you end up with the best outcome for your situation. You can research much of this yourself, and working with a mortgage broker such as Step by Step Financial Solutions can make it easier to compare a wider range of options and find a suitable deal for your circumstances.
Quick answer: is now a good time to remortgage?
For many homeowners, yes. A huge wave of fixed rate deals taken during the ultra-low interest rate period of 2021–2023 are expiring in 2026. If you do nothing when your current deal ends, you’ll almost certainly roll onto your lender’s standard variable rate, which as of April 2026 sits at an average of 6.74%. That’s a painful jump from the 2% or lower that many borrowers have been paying.
Remortgaging simply means replacing your existing mortgage with a new mortgage deal, either with the same lender or a different lender. You don’t have to move home. You’re just swapping the terms of your loan to (ideally) get a better rate, lower monthly payments, or both. Homeowners often remortgage to access better interest rates, and borrowers often remortgage when their fixed-rate deal ends.
You should start looking for remortgage options six months before your deal ends. That gives you time to compare remortgage rates, lock in an offer, and complete the switch before you land on SVR. The main reasons to act now include securing a better interest rate, fixing your monthly repayments for budgeting certainty, or releasing equity for home improvements.
Here are a few scenarios where remortgaging makes particular sense right now:
- Your 2-year fix is ending in November 2026 and you’re about to revert to SVR
- You’re on a tracker that has risen after Bank of England base rate changes, now sitting at 3.75%
- Your 5-year fix from 2021 expires soon, and you’re moving from a rate under 2% to something closer to 5%
- Your property has increased in value, improving your loan to value ratio and qualifying you for cheaper deals
Remortgaging activity grew by 13.7% in 2025, totaling 1.86 million refinancing loans, which signals that borrowers are actively taking control. Read on for the full picture, or skip to “How does remortgaging work?” or “Remortgaging in special situations” depending on where you are in the process.
What is remortgaging?
Remortgaging means replacing your current mortgage with a new one. You can do this with your existing lender through a product transfer, or switch to a new lender entirely. The new loan pays off the old mortgage in full on completion, leaving you with a single mortgage on different terms, whether that’s a new interest rate, a different mortgage term, or a changed repayment structure.
Most people remortgage when their fixed term or discount period ends. But you can remortgage at almost any time, subject to terms. Sometimes it’s worth exiting a deal early, even with early repayment charges, if the savings on the new deal outweigh the penalty.
Consider a borrower who took a fixed rate mortgage until March 2027 at 80% loan to value. After several years of repayments and house price growth, their LTV has dropped to 60%. That improved position could unlock significantly cheaper remortgage deals, making an early switch worthwhile. Remortgaging can change your monthly payments significantly in either direction.
Key points to keep in mind:
- You don’t move home to remortgage
- The new lender pays off your existing mortgage at completion
- It’s usually done at the end of a fixed or discount period
- It’s different from further advances, second charge loans, or equity release
How does remortgaging work in practice?
The process starts with checking when your current mortgage deal ends and what rate you’ll revert to. If your current deal expires and you haven’t arranged a new deal, you’ll land on SVR, which typically costs far more money than a competitive fixed or tracker rate.
Next, get an indication of your property value. Use online valuation tools, check recent local sale prices, or ask an estate agent. Then find your outstanding balance and remaining mortgage term from your latest statement. With those figures, you can get a rough sense of your loan to value ratio: balance divided by property value. In practice, an accurate LTV and borrowing position can be more complicated to pin down than this simple sum suggests, particularly if your finances or property are anything but straightforward. A mortgage broker can use professional valuation tools, such as Home Tracker and similar industry systems, alongside lender criteria, to assess your position more precisely.
Now decide whether to stay with your current lender or switch. A product transfer with the same lender tends to be simpler: fewer affordability checks, often no valuation, and less paperwork. Switching to a new provider means a full mortgage application, including a Decision in Principle, underwriting, and legal work. You may need a property valuation when switching lenders, and lenders will conduct credit and affordability checks during the process.
The remortgaging process typically takes 4 to 8 weeks when switching lenders, though the full remortgage process can take one to three months depending on complexity. A straightforward product transfer with your current lender can complete in as little as a few days to four weeks. On completion day, your new lender sends funds to pay off the old mortgage, your old direct debit is cancelled, and new monthly payments begin.
Why remortgage? Main reasons and potential benefits
The motivations usually come down to a few reasons: saving money, gaining payment security, or accessing cash.
Common reasons to remortgage include:
- Securing a lower rate to reduce mortgage payments
- Avoiding a costly jump to your lender’s standard variable rate
- Shortening the mortgage term to pay off the mortgage quicker
- Switching from interest-only to repayment (changing the mortgage type can be a reason for remortgaging)
- Releasing equity for home improvements, school fees, or to consolidate debt
Remortgaging can help reduce monthly payments or finance home improvements. It can also help pay off your mortgage faster if you keep payments the same on a lower rate. One-third of mortgage accounts may see payments decrease by refinancing, according to industry analysis.
Here’s a simple worked example: a £250,000 mortgage over 20 years at 6.5% costs roughly £1,863 per month. Switch to a 4.8% fixed rate and that drops to around £1,627. That’s a saving of approximately £236 per month, or over £14,000 across a five-year fixed term.
Remortgaging can lower your monthly payments significantly. You can also release equity for home improvements through remortgaging, or use it to consolidate other debts into one payment. However, if your financial circumstances have worsened, such as lower income or higher borrowing, remortgaging may stabilise payments rather than cut them. And sometimes staying put makes more sense: if early repayment charges or higher new rates outweigh the gains, switching could cost you more money overall.
Types of remortgage deals and how to choose
Most remortgage options mirror standard mortgage product types. The main categories are fixed rate, tracker, discount variable, and occasionally offset products. Choosing depends on your appetite for risk, how long you plan to stay, and what’s happening in the mortgage market.
Fixed rate remortgages offer stable monthly payments for a set term, typically two, three, five, or ten years. They’re the most popular choice for budgeting certainty and protection against rising rates. Two-year fixed remortgage rates are typically lower than five-year rates, though the gap varies.
Tracker mortgages follow the Bank of England base rate changes, rising and falling with the base rate. Variable rate remortgages can change interest rates at any time, which means your repayments could go up or down. Discounted variable mortgages track below the lender’s standard variable rate by a set margin, giving a slight discount but still leaving you exposed to rate movements.
Who each type tends to suit:
- 2-year fix – you’re expecting to move, overpay, or remortgage again soon
- 5-year fix – you want stability and protection until 2031
- Tracker or variable – you believe interest rates will fall or you want flexibility with no early repayment charges
You can compare these product types yourself, but working out which one genuinely suits your circumstances often involves more than picking a category. A mortgage broker such as Step by Step Financial Solutions can compare a wider range of remortgage deals across lenders, including specialist and niche lenders that only accept applications through a broker, and explain complex products in the context of your situation.
Loan to value (LTV), property value and equity
Your loan to value ratio is the remaining mortgage balance divided by your property’s current value, expressed as a percentage. Lenders will assess your loan-to-value ratio when remortgaging, and lower LTV bands unlock the most competitive remortgage rates because lenders see them as lower risk. The sum itself is simple, but getting an accurate, lender-acceptable property valuation is often the harder part. Mortgage brokers typically use professional valuation platforms, such as Home Tracker, alongside their knowledge of individual lenders’ criteria, to give a more reliable estimate of where you actually stand before you apply.
Here’s a concrete example: if your property is valued at £400,000 and you owe £240,000, your LTV is 60%. If your balance drops to £200,000 through repayments, your LTV falls to 50%, potentially moving you into a cheaper rate band. How much equity you hold directly affects what deals are available.
Rising property values and regular mortgage repayments both grow your equity over time. But falling values can push your LTV up, reducing your remortgage options. In the worst case, negative equity (owing more than the property is worth) makes remortgaging extremely difficult. You can remortgage up to 95% loan-to-value with some lenders, but rates at that level are significantly higher.
Before you compare remortgage deals, get a realistic valuation. Use online estimates, ask local agents for recent comparables, and don’t rely solely on your initial mortgage valuation from years ago.
Costs, fees and potential savings
Significant costs can be incurred when remortgaging, so it’s important to weigh fees against long-term savings. Evaluating all costs and potential savings is important when considering remortgaging.
Typical costs include:
| Cost type | Typical range |
| Product fee (arrangement fee) | £0–£1,500 |
| Valuation fee | £0–£500 (often free) |
| Legal/solicitor fees | £0–£1,000 (sometimes included) |
| Exit fees on old mortgage | £50–£300 |
| Early repayment charges | 1–5% of outstanding balance |
Early repayment charges may apply if you leave your current mortgage early, so check your existing deal terms carefully. Some lenders offer fee-free remortgage deals or include free legal work and valuations for new remortgage customers, but these may come with a slightly higher mortgage rate.
Adding fees to your new mortgage increases your balance, meaning you pay interest on those fees for the rest of the term. A deal with a £0 product fee at 5.30% might actually cost less overall than a deal charging a £1,000 fee at 4.80%, depending on your balance and how long you fix for. Always look beyond the headline interest rate and focus on total cost over the fixed term.
When should you remortgage and how long does it take?
You should start comparing remortgage options six months before your deal ends. Many lenders let you lock in a rate up to six months ahead, with the option to switch if better rates appear before completion. You should start looking to remortgage at least three months before your current deal ends at an absolute minimum.
A realistic timeline looks something like this: research and initial advice takes one to two weeks, application and underwriting two to four weeks, valuation and offer one to two weeks, and legal work and completion another two to four weeks. A product transfer with your current lender can be done in a few days to four weeks. Switching to a new lender usually takes six to eight weeks, sometimes longer for complex cases like self-employment or unusual properties.
The key deadline is avoiding SVR. If your current deal ends on 31 January 2027, start looking in September 2026 and aim to complete in late January. Also watch for early repayment charges: completing before your existing fixed term ends can trigger penalties that eat into your savings.
According to UK Finance forecasts, roughly 1.8 million fixed rate mortgages will expire in 2026, many taken during the months leading up to and through the low-rate era of 2021. That means competition for good deals is high, and acting early gives you more options.
What to check before you remortgage (affordability, credit score and circumstances)
Think of this as a pre-remortgage checklist to complete in the months leading up to your remortgage application.
Start by reviewing your income, regular spending, and any changes since your initial mortgage: job moves, extra children, car finance, personal loans, or other debts. Poor financial circumstances can affect the ability to qualify for remortgaging, and lenders will scrutinise all of it during affordability checks.
Your credit score is critical. Lenders assess your credit score to determine eligibility, and your credit score influences the interest rates you qualify for. A low credit score may lead to higher mortgage rates or fewer options. Checking your credit score can help before applying to remortgage, so obtain your report from the main UK agencies and correct any errors.
In the months before applying, pay down credit card balances, avoid multiple new credit applications (too many credit applications can negatively impact your score), and make sure all payments are on time. Lenders also consider your age at the end of the term, employment type, and whether you’re taking on additional borrowing.
Step-by-step: how to remortgage and compare deals
Start by gathering full details on your current mortgage: your outstanding balance, current interest rate, remaining term, any early repayment charges, and the date your current deal ends. You’ll also need to know what reversion rate applies if you do nothing.
Next, estimate your property value and calculate your LTV so you know roughly which loan to value band you fall into. This step is essential because comparing deals can help find better remortgaging options, but only if you’re looking at the right LTV tier, and a rough estimate can easily place you in the wrong one. Use a mortgage calculator to model different scenarios and see what your new monthly payments might look like, or ask a broker to calculate your borrowing position accurately using their professional valuation tools and lender systems.
Decide your goals: lower monthly repayments, a shorter term, or releasing equity. Then use comparison tools or speak to a mortgage broker to filter remortgage deals based on those goals. Prepare your documents: last three months of payslips, latest P60, two to three years of accounts if self-employed, recent bank statements, and ID plus address verification.
Once you’ve chosen a deal, submit the remortgage application, respond quickly to lender queries, and review the mortgage offer carefully. Check the product fee structure, any restrictions, and the exit fees. Then instruct the solicitor to complete, and you’re done.
Remortgaging in special situations (bad credit, self-employed, borrowing more)
Remortgaging is still possible in many non-standard cases, but your remortgage options may be more limited and specialist advice becomes important.
If your credit score is low or damaged, expect fewer lender choices and higher rates. Demonstrating a strong recent payment record on your existing mortgage helps. Some specialist lenders offer adverse credit products, though you’ll pay a premium.
Self-employed applicants typically need to provide more evidence: two to three years of tax calculations, SA302s, and business accounts. Underwriters assess your income based on profits and consistency, so having clean, well-organised records speeds things up.
If you want to borrow more money through remortgaging, lenders will look at the new LTV after the additional borrowing, and run fresh affordability checks. This approach can fund home improvements or help children with deposits. But be cautious with debt consolidation: turning short-term unsecured debt into long-term borrowing secured on your property means you could pay more interest overall, even if higher monthly repayments on the unsecured debt disappear.
Lenders may also impose maximum LTV caps, stress-test your repayments at higher interest rates, and set age limits for when the mortgage must be fully repaid.
Should you stay with your current lender or switch – and do you need a broker?
A product transfer with your current lender is usually quicker and involves less paperwork. There’s often no valuation required, and existing customers sometimes get competitive offers, especially at lower LTVs. But “competitive” doesn’t always mean “best.” It’s still important to compare remortgage deals across the wider mortgage market before accepting.
Switching to a different lender can offer a lower rate, smaller fees, or more favourable features, but it takes longer and requires a full mortgage application with new affordability checks and legal work.
A mortgage broker adds value in several ways: wider access to lenders (including specialist and niche lenders that only accept applications through a broker, not directly from customers), help with complex cases, and support understanding small print around exit fees, tie-ins, and early repayment charges. Working with a broker such as Step by Step Financial Solutions means you can compare a wider range of mortgage products than you’re likely to find searching independently, using professional broker software and lender systems to identify options suited to your circumstances. This can be especially valuable if your situation is more complex, for example if you’re self-employed, have a lower credit score, or are borrowing more against your home. Some brokers charge a fee upfront, while others are paid by the lender. Always ask how the broker is paid so there are no surprises.
Whatever you do, don’t automatically accept the first offer from your current lender. Revisit your mortgage at the end of every fixed rate period. Start by checking your current deal details, reviewing your credit score, and then exploring remortgage options either directly with a new lender or through a broker. A better deal is almost always out there if you take the time to look. You’re welcome to research and compare it entirely on your own, but if you’d like support along the way, Step by Step Financial Solutions can help you explore suitable options, compare a wider range of mortgage products, and guide you through the process from start to finish.
Disclaimer
This article is for information purposes only and does not constitute financial or legal advice. The content provides general information and should not be relied upon as professional guidance.
Always consult qualified professionals before taking financial actions. The author accepts no responsibility for actions taken based on this article.
Risk Warnings
Your home may be repossessed if you do not keep up with repayments on your mortgage.
Step by Step Financial Solutions Ltd is an Appointed Representative of Stonebridge Mortgage Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority.
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