Last reviewed: July 2026
What is remortgaging? Remortgaging means switching your existing mortgage to a new deal - either a new rate with your current lender (product transfer) or moving to a completely new lender. Most borrowers remortgage when a fixed or tracker rate deal ends and they would otherwise revert to their lender's standard variable rate (SVR), which in July 2026 averages 7.13% - well above the best available fixed rates.
- How long does a remortgage take? 2 to 8 weeks. Product transfer with your current lender: 1 to 5 days. Full switch to a new lender: 4 to 8 weeks.
- How much does it cost to remortgage? Product transfer: often free. Full remortgage: £0 to £2,500 (arrangement fee £0 to £999, legal fees £300 to £800, valuation £0 to £700 - many deals include free legal and valuation).
- When to start: 3 to 6 months before your current deal ends. Mortgage offers are valid for 3 to 6 months.
- Do you need a solicitor? For a product transfer, no. For switching lender, yes - though many deals include free conveyancing.
- Current rates (Jul 2026): 2-year fix ~4.9%, 5-year fix ~4.6%, SVR ~7.13%.
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What does remortgage mean?
Remortgaging means changing the mortgage on a property you already own. It is different from getting a mortgage for the first time. There are two types:
| Type | What it means | Common reason |
|---|---|---|
| Product transfer | New deal with same lender | Simplest, fastest, no legal fees |
| Full remortgage | Move to a completely new lender | Better rate, raise funds, change term |
People remortgage for five main reasons: their current deal is ending and they want to avoid the SVR; they want to get a lower rate; they want to release equity from their home; they want to borrow more; or they want to change their mortgage term or type. The most common trigger is an expiring fixed rate. In July 2026, the average SVR is 7.13% compared to the best 5-year fix at around 4.6% - a difference of roughly £460/month on a £200,000 mortgage.
How does remortgaging work? Step by step
| Step | What happens | Timeframe |
|---|---|---|
| 1 | Check your current deal: find your deal end date, early repayment charge (ERC) and outstanding balance | Day 1 |
| 2 | Check product transfer rates: log in to your lender's portal or call them. These rates are often competitive and save legal costs | Day 1-2 |
| 3 | Compare the whole market: use a whole-of-market broker to check deals you cannot access direct. Many lenders only deal through brokers | Day 2-5 |
| 4 | Get a Decision in Principle (DIP): new lender checks your credit and confirms lending in principle. No hard credit search yet | Day 3-7 |
| 5 | Full application: submit income documents, bank statements, payslips. Lender runs hard credit search and orders valuation | Week 1-2 |
| 6 | Mortgage offer issued: lender sends formal offer. You have a 7-day reflection period before you are committed | Week 2-4 |
| 7 | Solicitor handles transfer: your solicitor redeems the old mortgage and registers the new one. This is the legal completion stage | Week 3-6 |
| 8 | Completion: new mortgage starts. Old lender sends final statement. You have 12 months to dispute the final bill | Week 4-8 |
How long does a remortgage take and what does it cost?
| Route | Time | Typical cost |
|---|---|---|
| Product transfer (same lender) | 1-5 days | Often free |
| Full remortgage (new lender) | 4-8 weeks | £0 to £2,500 |
Cost breakdown for a full remortgage:
| Fee | Typical range | Notes |
|---|---|---|
| Arrangement / product fee | £0 to £999 | Often added to mortgage balance. Fee-free deals usually have higher rates. |
| Legal / conveyancing | £300 to £800 | Many remortgage deals include free legal work. Always check the offer. |
| Valuation | £0 to £700 | Many deals include free valuation. Desktop or drive-by valuations are often free. |
| Broker fee | £0 to £500 | Fee-free brokers (Habito by Monzo) earn a procuration fee from the lender instead. |
| Early repayment charge (ERC) | 1% to 5% of balance | Only applies if you leave a fixed deal before its end date. Calculate before switching early. |
On a £200,000 remortgage, a deal with free legal and valuation but a £999 product fee may be cheaper overall than a fee-free deal at a 0.2% higher rate, depending on the term. Calculate total cost over the deal period, not just the monthly payment.
When can you remortgage? Timing guide
The best time to start the remortgage process is 3 to 6 months before your current deal ends. Here is why timing matters:
| When you act | What happens |
|---|---|
| 6 months before deal ends | Most lenders allow you to lock in a new rate this far in advance. If rates rise before completion, your locked rate protects you. If rates fall, most lenders let you switch to a better deal before completion without penalty. |
| 3 months before | Still time to complete without falling onto SVR. Tighter timeline if any complications arise in the application. |
| At deal end / SVR | You move to the SVR (~7.13% in July 2026). On £200,000 that is roughly £460/month more than a 5-year fix. No ERC to worry about - you can remortgage immediately. |
| During a fixed deal | You can remortgage early but will pay an ERC (1-5% of balance). Only worth it if the rate saving outweighs the ERC. Use the calculation: monthly saving x remaining months vs ERC. |
How soon can you remortgage before your fixed rate ends?
Most lenders allow you to reserve a new rate 3 to 6 months before your current deal ends. The mortgage offer will then be dated to complete when your current deal expires, so no ERC is triggered. Start 6 months before if you want the most options; start 3 months before as a minimum to avoid SVR exposure.
Can you remortgage early? ERC calculator guide
Yes - you can remortgage at any time, including during a fixed deal period. However, if you are still inside your deal period, you will pay an early repayment charge (ERC). The question is whether the long-term saving justifies the short-term cost.
ERC breakeven calculation:
Monthly saving = (current rate - new rate) x outstanding balance / 12
Months to breakeven = ERC amount / monthly saving
Example: £200,000 balance, current rate 5.5%, new rate 4.6%, ERC 2% (£4,000)
Monthly saving = (0.055 - 0.046) x 200,000 / 12 = £150/month
Months to breakeven = £4,000 / £150 = 27 months
If your remaining fixed period is longer than the breakeven point, remortgaging early can save money overall despite the ERC. ERCs typically reduce each year of a deal (e.g. 5% in year 1, 4% in year 2, 3% in year 3) so the calculation changes as your deal progresses. Ask your lender for the current ERC figure before calculating.
Current remortgage rates: July 2026
Indicative rates for a typical borrower at 60-75% LTV paying by direct debit. Rates change daily.
| Deal type | Rate range (Jul 2026) | Monthly cost (£200k, 25yr) |
|---|---|---|
| 2-year fixed | ~4.7-5.2% | ~£1,118-£1,183 |
| 5-year fixed | ~4.4-4.8% | ~£1,082-£1,132 |
| 10-year fixed | ~4.6-5.0% | ~£1,107-£1,153 |
| Tracker (BoE base + margin) | ~4.2-4.7% | ~£1,052-£1,118 |
| Standard variable rate (SVR) | ~6.5-8.5% | ~£1,371-£1,598 |
5-year fixes are currently cheaper than 2-year fixes due to an unusual inversion in swap rates (5-year swaps at ~4.0-4.3% vs 2-year swaps at ~4.2-4.5%). This makes 5-year fixes unusually competitive in July 2026. Sources: Rightmove mortgage rate tracker July 2026; Bank of England June 2026 MPC minutes. Next BoE decision: 30 July 2026.
Product transfer vs full remortgage: which is better?
| Factor | Product transfer | Full remortgage |
|---|---|---|
| Speed | 1-5 days | 4-8 weeks |
| Affordability check | Not required | Full FCA MCOB check |
| Solicitor needed | No | Yes (often free with deal) |
| Valuation | Not required | Required (often free) |
| Lender access | Current lender only | Whole market |
| If circumstances changed | Usually still available | May be harder if income dropped |
| Best for | Speed, simplicity, unchanged circumstances | Best rate, raising equity, changing term or LTV band |
Rule of thumb: Check your current lender's product transfer rates first. If they are within 0.2% of the best market rate, the fee saving on a product transfer (no legal, no valuation) often makes it the better choice. If the market has a rate more than 0.2% better, run the full calculation including all fees.
How to remortgage to release equity
Remortgaging to release equity means borrowing more than your current mortgage balance, with the extra funds paid to you as a lump sum. This is common for home improvements, debt consolidation, or funding other purchases.
How much can you remortgage and release?
Most lenders will lend up to 85-90% of your property's current value. The maximum
you can release is: (property value x maximum LTV) - outstanding mortgage balance.
Example:
Property value: £350,000
Outstanding mortgage: £180,000
Lender max LTV: 85% = £297,500
Maximum release: £297,500 - £180,000 = £117,500
Releasing equity increases your mortgage balance and your monthly payments. The lender will assess affordability on the new, higher balance. If your income has not increased since your original mortgage, this may limit how much you can release. A valuation is required to confirm the property value. Some lenders cap equity release remortgages at 75-80% LTV rather than the standard 85-90%, particularly for borrowers over 60.
Do you need a solicitor to remortgage?
| Route | Solicitor required? | Why |
|---|---|---|
| Product transfer | No | No change of lender, no Land Registry update required |
| Switching lender | Yes | New lender must be registered at Land Registry as the new charge holder. This is legal work that requires a solicitor or licensed conveyancer. |
When switching lender, most competitive remortgage deals include free legal work using the lender's panel solicitors. You can instruct your own solicitor but it is rarely cheaper. The panel solicitor handles the redemption of the old mortgage, registration of the new charge, and any issues with the title. The process typically takes 2-4 weeks once the mortgage offer is issued. If there are any title issues or missing documents, this can extend to 6-8 weeks.
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Your rights when remortgaging: FCA rules explained
- Key Facts Illustration (KFI): your lender or broker must provide a KFI before you proceed, showing the total cost over the full mortgage term. A legal requirement under FCA MCOB rules.
- 7-day reflection period: after receiving a mortgage offer you have 7 days before you are legally bound to proceed.
- Affordability assessment: if switching lender, the new lender must conduct a full affordability check under FCA MCOB. A product transfer with your existing lender does not require this - useful if your income has changed since your original mortgage.
- Broker fee disclosure: your broker must disclose their fee or commission in writing before proceeding. Fee-free brokers earn a procuration fee from the lender. Whole-of-market brokers must confirm they are searching all available lenders.
- ERC disclosure: your current lender must state your ERC clearly in your mortgage documents and on request. ERCs cannot be changed during the fixed period.
- Final bill: your old lender must issue a final statement within 6 weeks of the remortgage completing. You have 12 months to dispute any errors.
Sources: FCA Mortgage Conduct of Business (MCOB) rules; FCA Consumer Duty 2023; Mortgage Credit Directive; Land Registration Act 2002.
Disclaimer: Kael Tripton Ltd is an independent editorial publisher and is not authorised or regulated by the Financial Conduct Authority. This guide is for general information only and does not constitute financial advice. Habito by Monzo is a Featured Partner on this page. Rates shown are indicative and change daily - verify current rates directly with lenders or brokers. Always seek independent financial advice before making mortgage decisions. ICO registration ZC135439.
Frequently asked questions
What does remortgage mean?
Remortgaging means switching your existing mortgage to a new deal without moving home. This can mean getting a new rate with your current lender (product transfer) or moving your mortgage to a completely new lender. Most people remortgage to avoid their lender's standard variable rate (SVR) when a fixed or tracker deal ends.
How long does a remortgage take?
A product transfer with your current lender typically takes 1 to 5 working days. Switching to a new lender takes 4 to 8 weeks from application to completion. The main variable is how quickly the valuation and solicitor work are completed.
How much does it cost to remortgage?
A product transfer often costs nothing. A full remortgage to a new lender typically costs £0 to £2,500 in total, covering the arrangement fee (£0 to £999), legal fees (£300 to £800), and valuation (£0 to £700). Many competitive deals include free legal work and free valuation, reducing the out-of-pocket cost significantly. If you leave a fixed deal early, you will also pay an early repayment charge (1 to 5% of your outstanding balance).
Can you remortgage early?
Yes. You can remortgage at any time, but if you are within a fixed deal period you will pay an early repayment charge (ERC). The ERC is typically 1 to 5% of the outstanding balance, reducing each year. It can still be worth remortgaging early if the long-term rate saving outweighs the ERC cost. Calculate: (monthly saving x remaining months) vs ERC.
Can you remortgage at any time?
Yes - there is no legal restriction on when you can remortgage. If you are on the SVR you can switch immediately with no penalty. If you are inside a fixed deal you can remortgage but will pay an ERC. You can also lock in a new rate up to 6 months before your current deal ends with no ERC.
When should I remortgage?
Start reviewing options 3 to 6 months before your current deal ends. This gives you time to lock in a rate while your current deal is still running, avoiding any gap on the SVR. If you are already on the SVR, remortgage immediately - every month on the SVR costs significantly more than on a fixed deal.
Do I need a solicitor to remortgage?
For a product transfer (staying with your current lender) you do not need a solicitor. For switching to a new lender you do - the new lender must be registered at the Land Registry. Most competitive deals include free legal work through the lender's panel solicitors.
What happens when you remortgage?
When you remortgage to a new lender: you apply, the new lender runs an affordability check and valuation, issues a mortgage offer, your solicitor redeems the old mortgage and registers the new one, and your new payments start. Your old lender sends a final statement within 6 weeks. The whole process takes 4 to 8 weeks.
Why do people remortgage?
The five main reasons to remortgage: (1) avoid the SVR when a fixed deal ends, (2) get a lower rate and reduce monthly payments, (3) release equity for home improvements or other purposes, (4) borrow more, (5) change the mortgage term or switch from interest-only to repayment. Avoiding the SVR is by far the most common reason.
How much can I remortgage?
Most lenders will lend up to 4 to 4.5 times your annual income, or up to 85-90% of the property's current value (whichever is lower). To release equity, the maximum is: (property value x maximum LTV) - outstanding mortgage balance. Your affordability assessment will determine the exact amount.
How soon can I remortgage before my fixed rate ends?
Most lenders allow you to reserve a new rate 3 to 6 months before your current deal ends. The mortgage offer is dated to complete at your deal end date, so no ERC is triggered. Start 6 months out for the most options; 3 months out as a minimum.
Is it better to get a 2-year or 5-year fix in 2026?
5-year fixes are currently cheaper than 2-year fixes (unusual inversion in swap rates). A 5-year fix gives rate certainty through 2031 and is currently around 0.3-0.4% lower than a 2-year fix. A 2-year fix suits borrowers who expect rates to fall significantly by 2028 or who need flexibility in 2 years. The next BoE decision is 30 July 2026.
What is the current mortgage rate for remortgaging?
In July 2026, typical remortgage rates are: 2-year fix ~4.7-5.2%, 5-year fix ~4.4-4.8%, tracker ~4.2-4.7%, SVR ~6.5-8.5%. Rates change daily and depend on your LTV, income, credit profile and the specific lender. Verify current rates directly with lenders or through a whole-of-market broker.
Can I remortgage my house?
Yes, as long as you have equity in the property (i.e. the property is worth more than your outstanding mortgage). You will need to pass the lender's affordability assessment and credit check. If your circumstances have changed significantly since your original mortgage (reduced income, adverse credit) a product transfer may be easier to secure than a full remortgage to a new lender.
What do I need to remortgage?
For a product transfer: just your current lender login details and your deal end date. For switching lender you will need: last 3 months payslips and bank statements, P60 or 2-3 years tax returns if self-employed, photo ID, proof of address, your current mortgage statement, and your property's estimated value.
Sources: Bank of England MPC June 2026 minutes; FCA MCOB rules; Rightmove mortgage rate tracker July 2026; HomeOwners Alliance interest rate forecast July 2026; Land Registration Act 2002; Bank of England Financial Stability Report April 2026.
