The complete guide to remortgaging

What is a remortgage?

A remortgage is switching your existing mortgage to a new deal, either with the same lender (a product transfer) or with a different lender (a full remortgage). You're not moving house, not borrowing against an additional property, just refinancing what you already have. It's the most common mortgage transaction in the UK: most people remortgage every 2 or 5 years as their fixed rates end.

When to start the process

Start looking 6 months before your current deal ends. Most lenders will let you lock in a new rate up to 6 months in advance, protecting you against rate rises in the meantime. If rates fall before completion, you can usually switch to the lower new offer without penalty. If rates rise, you've locked in the previous (lower) offer. It's a one-way benefit, there's no downside to starting early.

Product transfer vs full remortgage

Product transfer is switching to a new deal with your current lender. Usually fast, no affordability check required, minimal paperwork. The trade-off is you're limited to whatever your current lender offers, which may not be competitive.

Full remortgage is moving to a different lender. Usually gets you the most suitable rate available, but involves an application process, affordability check, valuation, and legal work (though often funded by the new lender via free legals and free valuation).

We usually check both paths and recommend whichever gives the best total cost over the fixed term. Sometimes product transfer wins (especially when the rate is close and the effort of a full remortgage isn't worth small savings). Sometimes switching wins by thousands.

What it costs

• Lender product fees (typically £0-£1,999), often added to the loan.
• Legal fees for the new lender, many lenders offer free legals on remortgages to attract business.
• Valuation fees, often free on remortgages, occasionally £200-£500.
• Broker fee, varies by broker. We charge either nothing (commission-only) or a fixed fee depending on case complexity; always disclosed upfront.
• Early Repayment Charge if you leave your current deal before the end of your fixed term. Usually 1-5% of the outstanding loan, so always check before switching early.

When staying with your lender makes sense

We regularly tell clients to stay put. Situations where product transfer typically wins: small differences between product transfer and new-lender rates (under 0.15%, barely worth the effort); your affordability has weakened since the original mortgage (new lenders may decline but your current lender will still offer product transfer); you have a complex situation where re-underwriting could cause hassle; you're close to end of term and the difference over the remaining years is minimal.

When switching wins big

Big rate difference between product transfer and new-lender offers (0.3%+ on a £250k+ balance usually justifies switching). You want to raise additional capital (home improvements, gifted deposits for children, debt consolidation, the new lender usually stretches further than a further advance from your current lender). Your current lender has pulled back from your risk profile, switching to a more competitive lender can save thousands.