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, outgoings, salary and debt to income ratio. If you're remortgaging, it can be easier to get a mortgage as you will have already met the eligibility criteria the first time around.
However, if you've had a significant change in your circumstances since you took out your mortgage, you might have trouble. Say your outgoings have increased or you've lost your job. In which case, you may no longer pass affordability tests for your remortgage. 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 that 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:
- Wait until your deal is due to end to avoid paying an early repayment charge
- Pay off more of your mortgage so you're on a lower LTV band - if you're close to the next LTV band, e.g. you have an 87% LTV, waiting until your loan to value reaches 85% will unlock cheaper rates and better deals
- Watch out for fees - sometimes the lowest interest rate includes hefty fees. 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 for you and handle all the paperwork. They won't charge you a fee and can take the stress out of the remortgaging process for you.
Remortgaging usually takes about a month, which is the time you need to complete all the paperwork and have a valuation conducted 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 to 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, you will likely have to pay an early repayment charge or ERC. An ERC is a penalty for leaving your existing mortgage deal early; it is usually calculated as a percentage of the amount borrowed.
Remortgaging before your fixed-rate period comes to an end could negate any savings you would make, so make sure you calculate your mortgage payments 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. Once you have your results, 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 lowest interest rate remortgages.
¹Trustpilot rating correct as of 13/08/2021.
²Average saving for Trussle remortgage customers moving from their Standard Variable Rate (SVR).
Last updated: 13th August 2021