Remortgaging simply means switching your current mortgage to a new deal, either with your existing lender or a different one, to secure better terms. In most cases, the best time to remortgage in the UK is before your current deal ends, when interest rates fall, or when your financial situation improves.
When done at the right time, remortgaging can lower your monthly payments, reduce the total interest you pay over the life of the loan, release equity from your home, or protect you from future rate increases. When done at the wrong time, however, fees and penalties can outweigh the benefits.
This guide explains when you should remortgage, the clear signs it’s worth switching, and what UK homeowners need to consider before making a move.
If you want tailored guidance based on your property value, loan-to-value ratio, and financial goals, it’s worth speaking to professional remortgage advice specialists to ensure you secure the most suitable deal available.
What Does Remortgaging Mean?
Remortgaging is the process of replacing your existing mortgage with a new one. You can remortgage:
With your current lender (a product transfer), or
By switching to a new lender offering better rates or features
Homeowners typically remortgage several times during the life of a mortgage, especially when fixed-rate or introductory deals expire. The goal is usually to save money, gain flexibility, or unlock funds tied up in the property.
When Is the Best Time to Remortgage in the UK?
There is no single “perfect” time, but the situations below are the most common and financially beneficial triggers.
1. When Your Fixed or Introductory Deal Is Ending
This is the most important time to remortgage.
Most UK mortgage deals last:
2 years
3 years
5 years
When the deal ends, your mortgage usually moves automatically to the lender’s Standard Variable Rate (SVR), which is often significantly higher.
Best practice:
Start reviewing remortgage options 3 to 6 months before your deal expires. This gives you time to compare lenders, secure a rate, and avoid falling onto an expensive SVR.
2. When You Want to Reduce Monthly Mortgage Payments
If your mortgage payments are stretching your budget, remortgaging may help.
You may be able to reduce payments if:
Market interest rates have fallen
Your credit score has improved
Your income is higher than when you last applied
Your loan-to-value ratio has reduced
Even a small rate reduction can create meaningful savings.
Example:
A 0.5% rate reduction on a £200,000 mortgage can save hundreds of pounds per year, and thousands over the term.
3. When Your Property Value Has Increased
Rising house prices can work in your favour. If your property has increased in value, your loan-to-value (LTV) ratio improves, which often unlocks cheaper mortgage rates.
Example:
Original property value: £250,000
Mortgage balance: £200,000 → LTV 80%
New value: £300,000 → LTV ~67%
That lower LTV places you in a better rate bracket, even if your mortgage balance hasn’t changed.
4. When You Want to Release Equity
Many homeowners remortgage to access equity built up in their property. This is commonly used for:
Home improvements
Debt consolidation
Education costs
Helping family members
Property investment
This type of remortgage increases your loan size, so it’s important to ensure repayments remain affordable. Used wisely, equity release through remortgaging can be a cost-effective way to fund major expenses.
5. When Your Financial Situation Changes
Life changes often justify reviewing your mortgage.
A remortgage may help if:
Your income has increased or stabilised
You want more predictable payments
You’ve cleared other debts
You want to switch from interest-only to repayment
Lenders will reassess affordability, so improved finances can strengthen your chances of securing better terms.
6. When You Want More Overpayment Flexibility
Some mortgages limit how much you can overpay or charge penalties for doing so. If you plan to reduce your mortgage balance faster, switching to a more flexible deal may offer:
Higher overpayment allowances
Fewer early repayment charges
Greater control over your loan
This is especially useful for homeowners with bonuses, self-employed income, or improving cash flow.
7. When You Want Protection From Rising Interest Rates
Many homeowners remortgage proactively to secure a fixed-rate deal when future rate rises are expected.
Fixing your mortgage can:
Stabilise monthly payments
Improve budgeting confidence
Reduce exposure to market volatility
Even if rates have not yet increased, locking in a competitive deal early can provide long-term peace of mind.
8. When You’re Unhappy With Your Current Lender
Remortgaging isn’t only about rates. It can also improve your overall experience.
Homeowners often switch lenders due to:
Poor customer service
Uncompetitive renewal offers
Limited flexibility
Better deals for new customers elsewhere
Switching lenders may give you lower fees, better online tools, and a smoother mortgage experience.
What Should You Consider Before Remortgaging?
Before committing, always review the full cost and impact.
Key checks include:
Early repayment charges on your current deal
Arrangement or product fees on the new mortgage
Valuation and legal costs
Your current credit profile
Overall savings after fees
A successful remortgage should leave you better off overall, not just in the short term.
Is Remortgaging Worth It?
The right time to remortgage depends on your circumstances, but the main triggers remain consistent: deal expiry, better interest rates, rising property value, and changes in income or goals.
Reviewing your mortgage every 12 to 24 months helps ensure you are not overpaying unnecessarily. With living costs rising and mortgage rates shifting, staying proactive can protect your finances and deliver long-term savings.
A well-timed remortgage can lower your payments, improve flexibility, and provide financial stability for years to come. Taking control of your mortgage is one of the smartest financial decisions a UK homeowner can make.
