Remortgaging
Fixed term ending? Here's how remortgaging really works.
When a fixed rate ends you move onto your lender's standard variable rate, which is normally their most expensive. Remortgaging means switching to a new deal before that happens — either with your current lender or a different one. With 40+ years of experience we compare both, fees included, and tell you if staying put is the better answer.
Four things worth knowing
Start six months out
Most lenders let you reserve a rate up to six months before your current deal ends, and you can still switch if rates improve.
Compare cost, not headline rate
A lower rate with a £1,499 arrangement fee can cost more than a slightly higher rate with no fee. We add the fees in.
Product transfer or full switch
Staying put is faster; moving lender opens the whole market. We price both and show you the difference.
Standard variable rate is the trap
When a fixed deal ends you roll onto the lender's standard variable rate, usually the most expensive rate they offer.
Remortgaging questions, answered
The questions homeowners ask us most often when a deal is coming to an end.
- When should I start looking at remortgaging?
- Around six months before your current deal ends. Most lenders let you reserve a new rate up to six months ahead, so you can lock something in and still move to a better deal if rates fall before completion. Leaving it until the last minute usually means dropping onto the lender's standard variable rate, which is normally the most expensive option available.
- What is an early repayment charge?
- It is a fee your current lender charges if you leave a fixed or discounted deal before it ends, typically 1% to 5% of the balance. It is often worth paying if the saving on the new deal is bigger than the charge, so we always compare the two figures before recommending a switch.
- What is the difference between a product transfer and a remortgage?
- A product transfer means staying with your existing lender and moving onto one of their new rates — quick, with little paperwork and usually no valuation or legal work. A remortgage moves your loan to a different lender, which takes longer but opens up the whole market and often a cheaper rate. We compare both before you decide.
- How long does remortgaging take?
- A product transfer can complete in a few days. Switching lender usually takes four to eight weeks from application to completion, allowing for the valuation and the legal work. Starting six months out means the new deal begins the day the old one ends, with no gap on the standard variable rate.
- Can I borrow more when I remortgage?
- Yes. Many people raise extra money for home improvements, to consolidate other borrowing or to help family. The lender reassesses affordability and the value of your property, so the amount available depends on your income, outgoings and how much equity you hold.
- Does remortgaging affect my credit score?
- Asking us for a comparison does not. A full mortgage application leaves a hard search on your credit file, which is normal and expected. We only submit an application once you have seen the figures and told us to go ahead.
Income that is not a simple monthly salary? Self-employed remortgages and contractor remortgages are assessed differently.