If your fixed-rate deal is coming to an end, you have probably had a letter from your lender with a cheerful-sounding "new options" headline. Behind it sits a simple fact: doing nothing is usually the most expensive choice. Once a fixed deal ends, most lenders move you onto their standard variable rate, which at the moment sits around 7% at many lenders, noticeably higher than the best fixed deals on the market.
The good news is that remortgaging is far less scary than it sounds. Here is how it works, and how to do it without losing a weekend to paperwork.
What remortgaging actually means
Remortgaging means replacing your current mortgage with a new one on the same property. You might stay with your existing lender on a new deal, or move to a different lender entirely. People usually do it to:
- Avoid the standard variable rate when a fixed or tracker deal ends
- Lock in a lower rate
- Release equity for home improvements or other plans
- Change the term or switch between repayment and interest-only (see our explainers on repayment mortgages and interest-only mortgages)
If you want the background first, our guide to what a re-mortgage involves covers the basics.
Product transfer or full remortgage?
This is the first decision, and it shapes everything else.
Product transfer: You stay with your current lender and simply choose a new deal. There is usually no new valuation, no solicitor and very little paperwork. It is quick, but you only see that one lender's rates.
Full remortgage: You move to a new lender. You will need a fresh application, a valuation and legal work, though many lenders offer free valuations and a free or low-cost legal package on remortgages. The upside is access to the whole market, which often means a better rate.
Neither is automatically better. The right answer depends on the gap between the rates on offer and the cost of switching, which is why comparing both is worth the effort.
Step by step: how to remortgage
1. Check when your deal ends
Look at your latest mortgage statement or log in to your online account. Note the date your deal ends, your remaining balance and any early repayment charge. Leaving a deal early usually triggers a charge, often a percentage of the balance, so waiting for the end date is normally cheaper. Our guide to early repayment charges explains how they are calculated.
2. Start looking 3 to 6 months ahead
Most lenders let you secure a new rate up to six months before your current deal ends, and many let you change your mind if a better one appears. Locking in early protects you if rates rise, and you can usually still switch to a cheaper deal later if the market improves. The Bank of England base rate has been held at 3.75% through 2026, but with a decision due on 5th November, rates can move quickly.
3. Work out your loan to value
Your loan to value (LTV) is your mortgage balance as a percentage of your home's value. The lower it is, the better the rates you will be offered, with price bands typically stepping at 60%, 75%, 80% and 90%. If house prices have risen since you bought, or you have paid down some of the balance, you may have dropped into a cheaper band. Our explainer on loan to value shows how to calculate it.
4. Compare the total cost, not just the rate
A low headline rate can hide a hefty product fee. Add up the fee, any valuation or legal costs, and the monthly payment over the length of the deal. Sometimes a slightly higher rate with no fee comes out cheaper overall, particularly on smaller mortgages. Our guide to mortgage product fees is a handy cheat sheet.
Also think about what you want from the deal:
- Fixed rate: Your payments stay the same for the term, which makes budgeting simple. See fixed-rate mortgage basics.
- Tracker: The rate moves with the base rate, so payments can go up or down. See tracker mortgages explained.
- Overpayment allowance: Most deals let you overpay up to 10% a year without penalty, useful if you want to shrink the balance.
5. Talk to a broker (or at least a few lenders)
A good independent mortgage advisor can see deals you will not find on comparison sites, including some that are only available through brokers. They also handle the paperwork and tell you honestly if staying put is the better option. Our page on mortgage advisor services explains what to expect and what they charge.
6. Gather your documents
For a full remortgage you will usually need:
- Proof of identity and address
- Recent payslips and bank statements, or accounts and tax calculations if you are self-employed
- Details of your current mortgage and outgoings
- Your most recent mortgage statement
Having these ready can shave days off the process.
7. Apply and complete
Your new lender values the property, your solicitor deals with the legal switch, and once everything is signed your new lender pays off the old mortgage. A full remortgage typically takes between 4 and 8 weeks, so the earlier you start, the less chance of a gap on the standard variable rate. A product transfer can be done in days.
Common mistakes to avoid
- Waiting until the last week: You can lose a rate you wanted, or spend a month or two on the standard variable rate.
- Ignoring fees: A cheap rate with a large fee on a small balance is not always a bargain.
- Borrowing more than you need: Releasing equity feels easy, but every extra pound is repaid with interest.
- Forgetting life changes: A new job, a new baby or going self-employed all affect what lenders will offer, so be upfront from the start.
- Assuming your lender is the best option: Their loyalty deal may be fine, but it only takes a few minutes to check it against the market.
Remortgaging as a landlord
If the property is a rental, you will need a buy-to-let remortgage. Lenders look closely at rental income against the mortgage payment, so it pays to know your numbers. Keep your tenancy agreement, rent statements and safety certificates to hand, and make sure the property is compliant. A well-managed property with reliable rent is easier to finance. If you would rather leave the day-to-day to someone else, our fully managed service keeps the paperwork organised, and our tenant find service helps if you need a tenant in place before you borrow.
Your quick checklist
- Find your deal end date and any early repayment charge
- Start comparing 3 to 6 months ahead
- Work out your loan to value
- Compare total cost, not just the headline rate
- Speak to an independent advisor
- Gather your documents
- Apply early, and keep a backup plan if completion slips
If you are thinking of selling rather than remortgaging, it is worth knowing what your home could achieve before you commit to another deal. Our sell your home service gives you a flat-fee route to market with no percentage commission, so you can compare the two options with the full picture in front of you.
This article is general information, not financial advice. Your home may be repossessed if you do not keep up repayments on your mortgage.
