What Is Remortgaging?
Remortgaging is the process of replacing your existing mortgage with a new one — either with your current lender (known as a product transfer) or with a new lender. You are not moving house; you are simply changing the terms or provider of the loan secured against your property.
Remortgaging is one of the most financially impactful decisions a homeowner can make. Getting it right — choosing the right product at the right time and managing the legal process efficiently — can save thousands of pounds over the life of a mortgage.
When Should You Remortgage?
The most common and financially compelling reason to remortgage is when your existing fixed-rate deal is approaching its end date — typically two, three, or five years after your last mortgage product began. When a fixed rate expires, you automatically roll onto your lender's standard variable rate (SVR), which is almost always significantly higher.
Other good reasons to remortgage include:
- Your home has increased significantly in value, giving you a better loan-to-value (LTV) ratio and access to better rates
- You want to raise money for home improvements, debt consolidation, or other major expenditure (equity release)
- You want to extend or reduce the mortgage term
- You want to add or remove someone from the mortgage (in conjunction with a transfer of equity)
- Your circumstances have changed and you want a more flexible mortgage product
When Not to Remortgage
Remortgaging is not always the right move. Situations where you should think carefully include:
- Early repayment charges (ERC): If you are within a fixed-rate period, breaking your deal early will trigger an ERC — typically 1%–5% of the outstanding balance. This can easily wipe out any savings from remortgaging
- Small outstanding balance: The legal and product fees of remortgaging may exceed the savings if your remaining mortgage is small
- Short time remaining: If you only have a few years remaining on your mortgage, the costs of remortgaging may not be recouped
How Does Remortgaging Work?
Step 1: Research the Market
The remortgaging process typically starts 3–6 months before your current deal expires. Use a mortgage broker (ideally one with whole-of-market access) to find the best available rate and product for your circumstances.
Step 2: Formal Mortgage Application
Once you select a product, you formally apply to the new lender. The lender carries out affordability checks and a property valuation (often free or subsidised as part of a remortgage package).
Step 3: Instruct a Solicitor
The new lender will require a solicitor to handle the legal aspects of the remortgage — investigating the title, satisfying the lender's requirements, and registering their charge at HM Land Registry. Legal Merchant can match you with a competitive, efficient panel solicitor for your remortgage.
Many lenders offer "free legal work" as part of their remortgage package — but this means their appointed solicitor acts for the lender only. You may choose to instruct your own solicitor to act in your personal interests alongside the lender's solicitor.
Step 4: Completion
On the completion date, the new lender releases the funds, which are used to redeem (pay off) your existing mortgage. The transaction is registered at HM Land Registry.
Costs of Remortgaging
| Cost | Typical Amount | Notes |
|---|---|---|
| Arrangement / product fee | £0–£2,000 | Often added to the mortgage; check the true cost over the product term |
| Legal fees | £350–£650 | Many lenders offer free legal work for remortgages |
| Valuation fee | £0–£500 | Often free as part of a remortgage deal |
| Early repayment charge | 1%–5% of balance | Only if breaking a fixed deal early |
| Exit fee | £0–£300 | Charged by some lenders when you leave |
The Legal Process of Remortgaging
The legal process of a remortgage typically takes 4–8 weeks from instruction to completion. Your solicitor will:
- Obtain official copies of the title from HM Land Registry
- Check for any restrictions, covenants, or charges that might affect the lender's security
- Review your new mortgage offer and report to you on its terms
- Prepare a certificate of title for the new lender
- Arrange for the simultaneous redemption of your existing mortgage and registration of the new lender's charge on completion
Remortgaging to Release Equity
If your property has increased in value since you purchased it — or since your last remortgage — you may be able to release some of the equity (the difference between the property's value and the outstanding mortgage balance) by borrowing more on your remortgage.
Common uses for released equity include:
- Home improvements (extending, converting, renovating)
- Debt consolidation (though this converts unsecured debt to secured — consider carefully)
- Helping a child with a deposit
- Holiday or other large expenditure
