Remortgaging: When to Switch, What It Costs, and How to Get the Right Deal for You

Every mortgage has an end date — the point at which your fixed, tracker, or discounted rate expires and your lender moves you onto their Standard Variable Rate. That SVR is almost always higher, sometimes significantly so, than the deal you were on. In this guide, I explain exactly when to start looking to remortgage, what an early repayment charge is and when it applies, whether to stay with your existing lender or switch, and how to borrow more if you need to.

When should I start looking to remortgage?

The answer most people do not expect: four to six months before your current deal ends.

Most mortgage offers are valid for between three and six months from the date they are issued. This means you can often apply for and secure a new mortgage now, with it set to start the day your current deal expires. You lock in today's rates, avoid any gap on the Standard Variable Rate, and give yourself time to switch without rushing.

If you wait until your deal has already ended, you will be paying your lender's SVR while you search and apply — and that can add hundreds to your monthly outgoings for weeks or months. I see this happen regularly with clients who assumed they needed to wait until the last moment. They do not.

The practical calendar: if your deal ends in December, contact a broker in June or July. That gives time for a proper market search, an application, and processing — all without touching the SVR.

Can I remortgage before my fixed rate ends?

Yes — but in most cases, you will face an Early Repayment Charge (ERC) for doing so.

ERCs exist because when you take out a fixed-rate mortgage, the lender is also fixing their cost of funds for that period. If you leave early, they incur a cost. ERCs are typically expressed as a percentage of the outstanding loan balance — often 1–5%, declining year by year through the fixed period. On a £200,000 mortgage, a 3% ERC is £6,000.

That does not always mean it is wrong to leave early. If rates have fallen significantly or your circumstances have changed, the saving from switching to a lower rate can outweigh the ERC — sometimes substantially. We run this calculation for clients regularly and the answer is not always what they expect in either direction.

The critical point: never assume paying an ERC is always wrong, and never assume it is always right. It requires a proper cost-benefit analysis based on your actual numbers.

How long does a remortgage take?

A straightforward remortgage with a new lender typically takes 4 to 8 weeks from application to completion. A product transfer (staying with your existing lender on a new deal) is usually faster — sometimes just a few days, as the lender already holds your information and does not need to instruct a new valuation or conveyancer.

Timelines can extend if: your application is complex (self-employed income, significant changes since your last mortgage, high LTV); the lender's processing times are slower than average; or if you are also borrowing additional funds on top of the remortgage.

Because timelines vary, starting early is the single most important thing you can do to ensure a smooth remortgage. Running out of time often forces borrowers into a product transfer with their existing lender — which may not be the most suitable deal available.

Should I stay with my current lender or switch?

This is the most common question I get from remortgage clients — and the honest answer is: it depends, and you need to run the numbers before deciding.

Staying with your current lender via a product transfer has genuine advantages: it is fast, requires no legal work or new valuation (in most cases), and involves minimal paperwork. If your circumstances have changed since your last application — reduced income, new outgoings, a dip in credit score — your existing lender may also be more accommodating than a new one doing a full underwrite.

However, your existing lender's retention rates are not always their most competitive products, and they know many borrowers will stay out of inertia. A proper market search often finds materially better rates, products with more flexibility, or deals with cashback and free legals that offset the cost of switching.

We compare your existing lender's offer against a comprehensive range of lenders on every remortgage review. Sometimes the product transfer wins. Often it does not. Either way, you will know the answer based on actual figures rather than assumption.

Can I borrow more money when I remortgage?

Yes, subject to meeting the lender's affordability criteria and having sufficient equity in your property. This is called further advance borrowing or additional borrowing at remortgage, and it is one of the most common reasons people remortgage beyond simply chasing a better rate.

Common uses for additional borrowing include:

• Home improvements and extensions — which can also increase the property's value
• Paying off other debts at a lower interest rate
• Funding significant purchases
• Releasing equity to help family members with their own property purchases

Consolidating unsecured debts (credit cards, personal loans) into your mortgage reduces your monthly outgoings in the short term, but it is critical to understand that you are converting short-term debt into long-term secured debt. You may pay less each month, but more in total interest over the life of the mortgage. This requires careful consideration and proper advice before proceeding — it is not always the right decision despite appearing to save money on paper.

How much equity do I need to remortgage?

There is no absolute minimum equity required to remortgage, but your loan-to-value ratio significantly affects which lenders will consider your application and what rates are available.

Most mainstream lenders will remortgage up to 90% LTV (meaning you need at least 10% equity). Above 90% LTV, options become more limited. A small number of specialist lenders will consider 95% LTV remortgages, but rates are typically less competitive.

Importantly, the value your property is attributed at the point of the remortgage valuation can work in your favour or against you. If property values in your area have risen since you bought, your LTV may now be lower than when you originally took out the mortgage — potentially giving you access to a better LTV band and more competitive rates. If values have fallen, the reverse applies.

What documents do I need to remortgage?

For a standard remortgage application, you will typically need:

• Proof of identity (passport or driving licence)
• Proof of address (utility bill or bank statement, usually within the last three months)
• Last three months' payslips (employed) or two to three years' accounts or SA302s (self-employed)
• Last three months' bank statements
• Your most recent mortgage statement
• Details of any other credit commitments

We prepare clients for this document list in advance and review everything before submission — a complete, well-presented application is far less likely to stall in underwriting than an incomplete one.

Is now a good time to remortgage? Should I fix for 2 or 5 years?

I am going to give you the honest answer rather than the one that sounds reassuring: nobody knows for certain where interest rates will be in two, three, or five years — not economists, not banks, and not mortgage brokers. Anyone who tells you otherwise is speculating, not advising.

What I can help you think through is the personal trade-off between certainty and flexibility. A two-year fixed rate gives you certainty for two years, after which you review again. A five-year fix gives you five years of certainty, but typically at a marginally higher rate, and with potentially higher ERCs if your circumstances change. A tracker mortgage moves with the Bank of England base rate — potentially beneficial if rates fall, painful if they rise.

The right choice depends on your personal circumstances: how long you plan to stay in the property, whether you might need to make significant changes in the next few years (move, start a family, change employment), and your appetite for rate risk. We work through this with every client before recommending a product term — there is no single right answer that applies to everyone.