Remortgaging Guide: When, Why & How to Get the Best Deal

When to Remortgage

The best time to remortgage is 3-6 months before your current deal ends. When a fixed or tracker deal expires, you move to your lender's Standard Variable Rate (SVR), which is typically 2-3% higher. Starting the process early ensures a seamless transition.

Reasons to Remortgage

Lower your rate: The most common reason. Even a 0.5% reduction on a £200,000 mortgage saves £1,000+ per year. Release equity: Borrow against increased property value for home improvements. Change your term: Extend to reduce payments or shorten to pay off sooner. Consolidate debts: Roll higher-interest debts into your mortgage (be cautious — this increases long-term costs).

Costs to Consider

• Early repayment charge (ERC): 1-5% of balance if leaving during a fixed period
• Arrangement fee: £0-2,000 for the new mortgage
• Valuation fee: Often free with remortgage deals
• Legal fees: Often free (many lenders offer free legal work for remortgages)
• Exit fee: £50-300 from your current lender

Fixed vs Variable

Fixed rate: Certainty of payments for 2-5 years. Best when rates are low or rising. Tracker rate: Follows Bank of England base rate plus a margin. Better when rates are expected to fall. SVR: Avoid staying on this — it is almost always the most expensive option.

How to Get the Best Deal

Improve your loan-to-value (LTV) — better LTV means lower rates. Check your credit score before applying. Use a mortgage broker who can access deals not available directly. Compare total cost including fees, not just the headline rate. A slightly higher rate with no fees may be cheaper overall.