Last reviewed: June 2026
TL;DR- Remortgaging means switching to a new mortgage deal - either a new product with the existing lender (product transfer) or a new lender entirely.
- The best time to start reviewing options is 3-6 months before the current deal ends - mortgage offers are typically valid for 3-6 months.
- Remortgaging to a new lender involves legal costs and a new valuation; a product transfer with the existing lender typically involves neither.
- Early repayment charges apply if the existing mortgage is within its deal period - these must be factored into any cost comparison.
Why Borrowers Remortgage
The most common reason for remortgaging is the end of an initial deal period - a fixed or tracker rate that reverts to the lender's SVR unless the borrower takes action. SVRs are typically significantly higher than deal rates, so borrowers who do not remortgage at the end of their deal period pay more than necessary. Other reasons for remortgaging include: accessing lower rates as property values have risen and the LTV has improved; raising additional funds for home improvements or other purposes; consolidating debt into the mortgage; or changing from interest only to repayment.
Product Transfer vs Full Remortgage
A product transfer is switching to a new deal with the existing lender. It is faster (often same-day), typically involves no legal fees and no new valuation, and requires less documentation. A full remortgage is moving to a completely new lender. It takes longer (typically 4-8 weeks), involves legal fees (though some remortgage deals include free legal work) and a new valuation, but may offer more competitive rates or access to products not available on a product transfer.
The product transfer rate may not be as competitive as the best available remortgage rate in the market. The saving from a lower remortgage rate must be weighed against the cost and effort of the full remortgage process.
When to Start the Remortgage Process
Mortgage offers are typically valid for 3-6 months. Starting the remortgage process 3-6 months before the current deal ends means the new deal can be locked in at current rates, with completion timed to coincide with the deal end date. If rates rise in the intervening period, the locked-in offer protects the borrower. If rates fall, most lenders allow the offer to be reapplied before completion to take advantage of the lower rate.
Leaving the remortgage until after the deal has ended and the mortgage has reverted to SVR means paying the higher SVR rate for any period between the deal end and the new mortgage completing. This can be avoided by starting the review process in good time.
Costs of Remortgaging to a New Lender
Costs of a full remortgage to a new lender include: the new lender's arrangement fee (if applicable - typically £0-£2,000); a valuation fee (£300-£1,000, often free on remortgage deals); legal fees (£500-£1,500, often free on remortgage deals); Land Registry fees; and any early repayment charge on the existing mortgage if it is still within a deal period. The total cost should be compared against the interest saving from the new rate over the remaining mortgage term.
Frequently Asked Questions
Can I remortgage to release equity?
Yes. Remortgaging to release equity involves increasing the mortgage amount to borrow against the equity built up in the property. The additional funds can be used for home improvements, debt consolidation, a deposit for another property or other purposes. A new affordability assessment is required for the higher loan amount and the LTV will increase. The additional borrowing is secured against the property.
What is a free legal remortgage?
Many lenders offer remortgage deals that include free standard legal work - the lender uses a panel solicitor at no cost to the borrower. The free legal service covers the standard remortgage conveyancing process. Non-standard situations (complex title issues, adverse entries on the title register) may still incur costs. Free legal remortgages reduce the upfront cost of switching lenders and make the cost comparison with a product transfer more straightforward.
Will a remortgage affect my credit score?
A full remortgage application involves a hard credit search, which temporarily affects the credit score. Multiple applications in a short period can have a cumulative effect. Using a broker who conducts a soft search first (before submitting a full application) reduces the risk of unnecessary hard searches on the credit file. A product transfer with the existing lender may be processed without a full credit search.
Can I remortgage with bad credit?
Yes, though the options are more restricted and the rates higher than for borrowers with clean credit. The adverse credit assessment principles for remortgages are similar to purchase mortgages - the recency, severity and type of adverse event determine lender availability. Borrowers with adverse credit should seek specialist advice before remortgaging to identify the most suitable lenders for their specific credit profile.
