The Ultimate Guide to Remortgaging

If you own a property - whether that’s outright or with a mortgage on it - there may come a time when you need to remortgage or raise capital against it. In this comprehensive guide, we will explain what the process involves, what kind of rates and deals you should expect, and how to refinance the right way.

What is a remortgage and how do they work?

Remortgaging either refers to moving your existing mortgage from one lender to another, or renewing a mortgage with your current lender. The latter scenario is commonly referred to as a product transfer, and can be more straightforward than moving to a new mortgage provider.

Sticking with your existing lender might, however, mean missing out on a better deal that could be on offer elsewhere, as you would be limiting yourself to just one line of products.

When you agree to remortgage, you are essentially taking out a new mortgage that replaces the old one by clearing the debt with newly-borrowed funds. But your remortgage doesn’t need to be for the same amount, as it’s possible to borrow more - if you have enough equity built up - or pay a lump sum off the mortgage when you refinance to reduce the term.

When to remortgage

Timing is everything when replacing your mortgage. The golden rule is to start reviewing your options 6 months before your current fixed, tracker, or discounted deal expires.

• Your Fixed Rate Is Ending: If you do nothing when your fixed rate expires, your lender will automatically move you onto their Standard Variable Rate (SVR). SVRs are significantly higher than competitive fixed rates and can add hundreds of pounds to your monthly payment.

• You Want to Capitalise on Lower Market Rates: If broader market interest rates have dropped since you took out your current deal, switching lenders could yield substantial monthly savings.

• Your Home Value Has Increased: If your property value has risen, your Loan-to-Value (LTV) ratio will have dropped. Crossing key LTV thresholds (e.g., moving from 85% LTV down to 75% or 60% LTV) gives you access to much lower interest rate tiers.

• You Want to Raise Equity: If you need funds for major home improvements, debt consolidation, or assisting family with a deposit, remortgaging allows you to release equity cash from your property.

Early Repayment Charge (ERC) Warning: If you switch to a new lender before your current fixed deal expires, your existing lender will charge an ERC - typically between 1% and 5% of your remaining balance. Always align your new mortgage completion date with the exact day after your old deal finishes.

What does the process involve?

The remortgage process consists of the following steps:

• Check Your Existing Terms: Request a redemption statement from your current lender to confirm your exact rate expiry date, remaining balance, and any Early Repayment Charges (ERCs).

• Establish Your Property's Current Value: Research recent sales of similar homes in your area to estimate your current LTV ratio.

• Secure an Agreement in Principle (AIP): Speak with a whole-of-market broker to compare internal product transfers against new lender offers, securing an AIP to lock in your preferred rate up to 6 months in advance.

• Complete the Formal Application & Valuation: Submit payslips, bank statements, and ID. Your new lender will perform a basic valuation (often a digital desktop valuation) to confirm property backing.

• Legal Conveyancing & Completion: Standard remortgages utilise free legal packages provided by the new lender. The appointed conveyancer handles money transfers, pays off your old lender on the agreed completion date, and registers the new mortgage with the Land Registry.

What interest rates are currently available?

There are a wide range of remortgage rates available on the market. The exact interest rate you qualify for will be determined by the amount of equity you have (the more, the better), the strength of your application and the type of product you choose.

You can use our free mortgage sourcing tool below to compare the latest remortgage deals from lenders across the market - including Halifax, NatWest, Nationwide, Santander and Barclays - and choose the product you want online:

Tips to help you get the best deal

Here are some tips to bear in mind if you are remortgaging your home:

• Don’t wait for your lender to call you: Mortgage lenders usually call customers with expiring introductory rates months in advance to discuss a new deal, but you don’t have to wait for them to call you to start shopping around. Some lenders will allow you to reserve an interest rate six months in advance, so it can pay to start early.
• Check your credit reports: You can download your credit reports by accessing a free trial through Checkmyfile. Review your files and flag up any inaccuracies or outdated information as this can boost your credit score and help you qualify for better rates.
• Think twice before accepting your existing lender’s offer: The product transfer rate your current lender is offering might well be the best deal for you, but you won’t know that for sure unless you compare it against the competition. Be sure to shop around.
• Speak to a mortgage broker: A remortgage broker can open up a much wider range of remortgage deals to you. Through their knowledge, experience and lender contacts, they can boost your chances of landing the best possible rate when you refinance.

Expert analysis

We asked Simon Beevers, head of operations with our sister brokerage, Echo Finance, what advice he'd offer to remortgage customers. His top tips are to make sure you're fully aware of the overall cost involved, including any fees, and to act quickly to secure your rate. 

“We’re seeing the most movement among remortgage customers at the moment," he said. "Borrowers seem to be most concerned about the fees that come with products at the moment, but it’s important to remember that it is sometimes in your best interest paying them.

“Working out the overall cost is vital. For instance, it is often worth paying a mortgage product fee, if you can afford to, to secure a lower rate as it means paying less across the entire term. Similarly, with broker fees, paying them is often in the client’s best interest as the adviser can help them secure a lower rate than what they’d get by going direct.

“My advice to anyone whose remortgage is due soon is don’t sit on the fence waiting for a rates cut that might never come anytime soon. Even in a volatile market, lenders have favourable deals for the right customers, so you should always explore your options rather than risk ending up on a costly standard variable rate with your current lender.”

Capital Raising & Equity Release Rules

Borrowing extra money against your home is one of the most cost-effective ways to access large sums of capital, as mortgage interest rates are lower than personal loans or credit cards. However, lenders enforce specific LTV limits depending on how you plan to use the cash:

• Home Improvements (Up to 85% LTV): Lenders look favorably on releasing equity for extension work, loft conversions, or green home upgrades, as structural improvements enhance the property's overall market value.

• Debt Consolidation (Up to 70% – 75% LTV): Rolling unsecured debts (credit cards, personal loans, car finance) into your mortgage lowers your immediate monthly outgoings. However, because you are spreading short-term debt over a 20-to-25-year mortgage term, you may pay significantly more total interest over time.

• Gifting to Family or Buying a Second Property (Up to 75% – 80% LTV): Releasing cash to gift a deposit to children or purchase an investment property is widely accepted, provided your income comfortably supports the larger mortgage balance.

Case study

How our brokers helped a homeowner remortgage to consolidate their debts

Read Case Study

How to calculate your new repayments

You can use our calculator below to work out what your new repayments will be after you have remortgaged. Simply enter the amount you will be borrowing on the new mortgage, factoring in any equity release via the field for this, enter a term length and interest rate, and the calculator will do the rest.

Can you refinance if you have bad credit?

Yes. It is possible to remortgage your home if you have poor credit, whether the issue was present when you took out your original mortgage, or occurred since then. Whether you are approved will depend on the strength of your application and factors including: 

• The age of the credit problem(s) 
• Their severity
• If there are mitigating circumstances surrounding them

Severe forms of adverse, such as a bankruptcy or a repossession, can make it more difficult to refinance, but may be possible if you hold substantial equity and the issues occurred long ago.

You can read more about bad credit remortgages in our standalone guide.

Begin your remortgage journey

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Refinancing a buy-to-let mortgage

The process for remortgaging a buy-to-let property is exactly the same as it is for a residential home. Most lenders require landlords to have owned the property for six months, but a minority, such as HSBC and NatWest offer day-one remortgages for investment properties.

Rates are generally higher for buy-to-let remortgages compared to residential, starting at roughly one percentage point higher on average, as a general rule of thumb.

Mortgage lenders known to offer buy-to-let remortgages include:

• Godiva
• Landbay
• Barclays
• HSBC
• Virgin Money
• LendInvest

Remortgaging in later life

Although most mortgage lenders have a maximum age limit that makes it difficult for some homeowners to refinance beyond the age of 75, other mortgage providers have a higher age cap than this, lending up to age 85 and beyond, under the right circumstances.

Refinancing an existing mortgage may be an option for some in later life, but there are alternatives, specifically tailored to the needs of older homeowners, to consider. They include:

• Lifetime mortgages: If you are planning to remortgage to release equity, a lifetime mortgage could be an alternative. These allow you to access the capital in your property as a loan that does not need to be repaid until you die or go into long-term care. You can take out a lifetime mortgage if you still have a residential mortgage in place, but would need to settle the outstanding debt with the equity you release.
• Retirement interest only (RIO): If you were to switch to a RIO mortgage, you would only have to make interest payments each month and settle the capital debt at the end of the term through the sale of the property, usually after you pass away.

Read more about later-life lending in our guide to mortgages for pensioners.

Property types we can help with

In addition to standard residential and buy-to-let properties, our whole-of-market mortgage brokers can help you remortgage the following property types:

• Commercial properties
• HMOs
• Farm and agricultural
• Shared Ownership
• Non-standard construction homes
• Uninhabitable properties
• Holiday homes
• And more

For the above property types, working with a mortgage broker is highly recommended as they can provide bespoke advice tailored to your individual needs. Many high street banks and building societies might not be able to cater for you, but our brokers have deep working relationships with lenders who specialise in niche and unique types of property.

Why use Money Helpdesk for your remortgage needs?

We have remortgage brokers on hand to offer advice and make sure you get the best deal when refinancing your property.

Here are just some of the reasons why you should choose us:

• We are 5-star rated on leading review websites
• You could secure an agreement in principle in minutes
• Exclusive rates and deals are available
• Our brokers could help you save time and money

Get started here to take advantage of a free, no-obligation chat with a mortgage broker who specialises in remortgages.