Everything You Need to Know About Remortgaging

For many homeowners, the end of a fixed-rate mortgage deal arrives quietly, often marked by a letter from the lender and the realisation that monthly payments may soon increase. Remortgaging is simply the process of switching your existing mortgage to a new deal, either with your current lender or a different one, but the decisions involved can feel complex, particularly if it’s your first time navigating the process. Understanding how remortgaging works, when it makes sense, and how it fits into wider plans such as moving or releasing equity can help you approach the decision with confidence.

What is remortgaging?

Remortgaging means replacing your current mortgage with a new one, usually to secure a better interest rate, reduce monthly payments, borrow more money, or move onto a deal that better suits your circumstances. Most homeowners consider remortgaging when their initial fixed or discounted rate comes to an end and the mortgage reverts to the lender’s standard variable rate (SVR), which is typically higher. For example, one common scenario discussed by homeowners online involves someone reaching the end of a five-year fixed deal and discovering their monthly payments could rise by several hundred pounds if they do nothing. Remortgaging before the deal expires allows them to lock in a new rate and avoid the increase.

Why do people remortgage?

The most common reason is to save money. If interest rates have fallen or your financial position has improved since you first bought your home, you may be eligible for better rates. Even small percentage changes can make a significant difference over time. Others remortgage to release equity: borrowing against the increased value of their property. This can be used for home improvements, consolidating debts, or helping fund major life changes. A homeowner in North London, for instance, might remortgage after extending a kitchen or converting a loft, using the increased property value to access funds at mortgage-level interest rates rather than relying on personal loans. There are also lifestyle reasons. Some homeowners move from fixed rates to more flexible products if they expect to move soon, while others extend their mortgage term temporarily to reduce monthly costs during periods of financial pressure.

The remortgaging process

The process itself is similar to applying for your original mortgage, although often simpler. A lender will reassess your income, outgoings, credit history, and the current value of your property. You may need a valuation, either automated or in person. Many homeowners are surprised that affordability checks apply again. Online forums frequently feature stories from people assuming remortgaging would be automatic, only to realise their circumstances (self employment, career changes or new financial commitments) affect what lenders are willing to offer. Preparing documents in advance can make this stage smoother. Once the new mortgage is agreed, your solicitor or conveyancer handles the legal side of switching lenders. In many cases, fees are minimal or included as part of the deal.

When should you remortgage?

Timing matters. Most lenders allow you to secure a new deal three to six months before your current one ends. Starting early gives you time to compare options without slipping onto a higher variable rate. However, remortgaging early can sometimes trigger early repayment charges (ERCs), so it’s important to check the terms of your existing mortgage. In some cases, the savings from a better rate outweigh the penalty, but this calculation should be made carefully.

Remortgage or sell?

For homeowners considering moving, the question often becomes whether to remortgage or sell. If your current home still suits your needs, remortgaging can be a cost effective alternative to moving, particularly given stamp duty and moving costs. A typical example shared by homeowners involves couples who initially planned to move for more space but realised that remortgaging to fund an extension achieved the same goal with less disruption. On the other hand, if your mortgage payments are becoming unaffordable or your circumstances have changed significantly, selling may provide a cleaner financial reset. Estate agents often play a useful role here, helping homeowners understand current property values and whether investing further in the property makes sense in the local market.

Things to watch out for

The lowest interest rate is not always the best deal. Arrangement fees, valuation costs, and product flexibility all matter. A slightly higher rate with lower fees or better overpayment options can sometimes be more suitable in the long term. It’s also worth considering future plans. Homeowners online frequently regret locking into long fixed deals shortly before deciding to move or change jobs, as early exit fees can be substantial.

Remortgaging is less about chasing the lowest rate and more about aligning your mortgage with your current life stage. Whether you are reducing costs, releasing equity, or planning your next move, the key is understanding your options early and seeking advice where needed. For first time remortgagers especially, the process can feel unfamiliar, but approached methodically it becomes another practical step in managing your home as a long-term asset – one that evolves alongside your finances, your family, and your future plans.

Contact us:

mark@daviesdavies.co.uk – Sales Director (contact for sales, lettings and new homes)

katrina@daviesdavies.co.uk – Director of Property & Block Management (contact for property and block management)

Davies & Davies Estate Agents, 85 Stroud Green Road, London, N4 3EG

Article & images by Barefaced Studios

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