The main reason for remortgaging is to save money - you can save an average of £300 per month by switching to a better deal.² If you’re on a fixed rate mortgage, once the initial rate ends, you will move onto your lender’s Standard Variable Rate, which will usually be more expensive than your current rate. Remortgaging onto a new fixed rate deal can keep your mortgage costs low.
Alternately, you might want to remortgage to borrow money. As you pay off your mortgage, the equity you have in your property increases, and this equity can be released via a remortgage. The cash that is released can be used, for example, to fund home improvements or to consolidate existing borrowing.
The fees will depend on the circumstances of your remortgage. Common remortgaging fees include:
When deciding whether to remortgage, you should work out all the additional fees you’ll need to pay and make sure they won’t outweigh the savings you’ll make by remortgaging.
"Uswitch has saved me the most money on my mortgage. In just the last two years alone I’ve saved around £1,800 just by choosing a better mortgage provider. My mortgage used to be with Halifax at £550 per month, but I switched to Metro Bank for £499 a month, saving me £51."
Saurabh Kapoor, Birmingham
Find out more about remortgages in our expert guides. We cover information on buying and selling property, mortgage eligibility, costs, and more.
A buy to let (or BTL) mortgage in the UK allows you to borrow money to purchase a property that you can rent out. You can find and compare buy to let mortgages with Uswitch.
Your home may be repossessed if you do not keep up repayments on your mortgage
Mortgage eligibility depends on a number of factors, including the loan to value (LTV), outgoings, salary and debt to income ratio. It can be easier to remortgage than get an initial mortgage because you have already met the eligibility criteria the first time around.
That said, if your circumstances have changed significantly since you took out your mortgage – if you lost your job, for instance – you may no longer pass affordability tests for a remortgage deal. People in this situation are known as “mortgage prisoners”, as they are unable to remortgage onto a cheaper deal.
If you're remortgaging to save money, it's best to start looking at offers a few months before your deal comes to an end so you can make a smooth transition to a new deal. However, it’s always good to keep an eye on the market to make sure you get the best remortgage deal for you.
To get the best rate, you can:
Pay off more of your mortgage, so you're in a lower LTV band
This can work if you're close to the next LTV band – for example, if you have an 87% LTV, waiting until it drops to 85% will mean you have access to cheaper rates and better deals
Watch out for fees
Sometimes the deals with the lowest interest rates include hefty fees so are more expensive overall. You should take care to calculate your savings and make sure these won't be undone by large fees
When you remortgage with Uswitch, you'll be taken to our expert broker partner's site. We work with trusted, whole-of-market online brokers who are on hand to help you select the right deal and handle all the paperwork. They won't charge you a fee and can take the stress out of the remortgaging process.
Remortgaging usually takes about a month, which is the time you need to complete all the paperwork and have a valuation carried out on your home. When the process is over, you’ll be notified with a completion statement from your lender.
If you choose to remortgage with the same lender, this is known as a product transfer. Because the lender already has all your details, product transfers tend to be quicker than remortgaging with a new lender. Some lenders offer digital product transfers which can be completed online in 15 minutes.
If you’re still locked into a mortgage deal, it’s likely you’ll have to pay an early repayment charge or ERC. An ERC is a penalty for leaving your existing mortgage deal early; it’s usually calculated as a percentage of the amount borrowed, which tends to decrease the closer to the end of the deal you get.
Paying an ERC to remortgage before your fixed-rate period comes to an end could negate any savings you would make, so make sure you calculate the costs carefully to decide whether it's worth it for you.
When you’re looking to remortgage, you’ll need to have an idea of the estimated value of your home, the amount you want to borrow, your annual income and how much you owe on your current mortgage.
Once you have this information to hand, answer some questions and use our remortgage calculator to compare the best remortgage deals on the market. With these results, you can compare the monthly cost, the initial rate and any fees across the deals. You can then work out the difference between the cost of your current deal and the best remortgage deals.
The lower your LTV (the percentage of the property’s value that you need to borrow) the lower the interest rate you tend to pay. This is because lenders see you as less of a risk compared with someone with a higher LTV. You’ll get the best deals if you’re borrowing 60% or less of your property’s value.
Yes, you can, although the process tends to be lengthier than transferring onto a new deal with your current lender. Providers usually offer better deals to existing customers, but you could still save by remortgaging with a different lender, so it’s worth comparing all the deals available.
You should ensure your outgoings are as low as possible and that you have a good credit rating by making sure you make any repayments for credit on time. You should also get your credit reports from the three credit reference agencies - Experian, Equifax and TransUnion - to make sure there are no errors on them. And register to vote if you haven’t already.
Also, avoid applying for other credit just before you need to remortgage, close any accounts you don’t use anymore, and pay off as much of your other debts as possible.
The “hard” search a mortgage lender carries out on your credit report as part of deciding whether to lend to you in a remortgage can leave a small dent in your credit score temporarily, especially if there’s more than one because you’ve had to apply to a number of lenders before being accepted.
In the long term, though, making your remortgage payments on time each month will actually boost your credit score.
Yes, you can, but the lender will usually want to see two to three years of accounts to decide whether you can afford to take out the remortgage and if you can, how much you can afford.
¹Trustpilot rating correct as of 13/08/2021.
²Average saving for Trussle remortgage customers moving from their Standard Variable Rate (SVR).
Last updated: 12th August 2022