Remortgaging: When to Switch and How to Save Tho

I remortgaged three times before I paid off my house. Each time, it saved me money. The first time, I knocked 0.6% off my rate, which saved me over £1,400 a year. The process took about two weeks of actual effort, spread over six weeks of waiting. For the amount it saved me, that was the highest hourly rate I’ve ever earned.

Most people set up their mortgage and never look at it again until the fixed rate ends and they get a letter from the bank. By then, they’ve usually spent months (or years) on a Standard Variable Rate paying far more than they need to. That is money going straight to the lender for no reason.

Remortgaging is one of the simplest ways to reduce your biggest monthly expense. And yet most people treat it as though it is some complicated, risky process. It isn’t.

What is remortgaging?

Remortgaging means switching your existing mortgage to a new deal, either with the same lender (a product transfer) or with a different lender entirely. You are not buying a new house. You are not borrowing more money (unless you choose to). You are simply getting a better rate on the money you already owe.

When should you remortgage?

There are four main triggers:

1. Your fixed rate is ending

This is the big one. When your fixed rate deal ends (typically after 2 or 5 years), you get moved onto your lender’s Standard Variable Rate (SVR). The SVR is almost always higher than what you could get on a new fixed deal. As of early 2026, the average SVR sits around 7.5%, while competitive 5-year fixes are available below 4%.

If you are paying 7.5% on a £200,000 mortgage when you could be paying 3.8%, you are overpaying by around £350 per month. That is £4,200 per year going nowhere.

2. Better deals have become available

Even if you are mid-way through a fixed deal, it is worth checking what is out there. If rates have dropped significantly since you took out your mortgage, the savings from switching might outweigh the early repayment charge. Do the maths before assuming you are stuck.

3. Your equity has grown

Mortgage rates are partly based on your loan-to-value (LTV) ratio. The lower your LTV, the better the rates you can access. If your property has increased in value, or you have paid down a significant chunk of the mortgage, your LTV might have crossed into a cheaper bracket.

The best rates are typically available at 60% LTV or below. If you bought with a 90% mortgage and your house has risen in value while you’ve been making repayments, you might now be at 70% or 65% LTV. That difference could be worth 0.3% to 0.5% off your rate.

4. Your circumstances have changed

Got a pay rise? Want to extend the term to reduce monthly payments? Want to overpay more flexibly? A remortgage lets you restructure. Some lenders offer better overpayment terms than others. Some allow payment holidays. Switching gives you the chance to get a mortgage that fits your current life.

When to start looking

Start looking 6 months before your current deal ends. Most mortgage offers are valid for 3 to 6 months, so you can lock in a rate well in advance. If rates drop further before completion, some brokers will find you an even better deal. If rates rise, you are protected because you already have an offer.

I started looking 5 months before my fix ended each time. It meant I was never on the SVR for a single day.

Broker vs going direct

You have two options: use a mortgage broker or go directly to lenders.

A broker searches the whole market (or most of it) and finds the best deal for your situation. A good broker has access to rates that are not available directly to the public. They handle the paperwork, liaise with the lender, and generally make the process smoother. Some charge a fee (typically £300 to £500), while others are fee-free and earn commission from the lender.

Going direct means approaching lenders yourself. Your existing lender will offer you a product transfer, which is often the simplest option because it doesn’t require a new affordability assessment or valuation. But the rate might not be the best available.

I used a broker every time. The fee was either zero or small enough that the savings on the rate more than covered it. Unless you enjoy comparing dozens of mortgage products yourself, a broker is worth it.

The costs of remortgaging

Switching is not free, but the costs are usually modest compared to the savings:

Cost	Typical amount
Arrangement fee	£0 to £1,500 (often added to the loan)
Valuation fee	£0 to £300 (many lenders offer free valuations)
Legal/conveyancing fee	£0 to £500 (many lenders offer free legal work)
Early repayment charge	1% to 5% of the outstanding balance (if applicable)
Exit fee	£0 to £300

Many competitive mortgage deals come with free valuations and free legal work. The arrangement fee, if there is one, can usually be added to the mortgage balance rather than paid upfront (though this means you pay interest on it).

The early repayment charge (ERC) is the one to watch. If you are still within your fixed rate period, your lender will charge you a penalty for leaving early. This can be substantial. On a £200,000 mortgage with a 3% ERC, that is £6,000. Always check whether the savings from the new rate outweigh the penalty.

Worked example: the maths

Let’s say your current mortgage is £200,000 on a 25-year term. Your 5-year fix at 4.5% has just ended and you’ve been moved to the SVR of 7.5%.

On the SVR: Monthly payment: approximately £1,478

On a new 5-year fix at 3.8%: Monthly payment: approximately £1,032

That is a saving of £446 per month, or £5,352 per year.

Over the 5-year fixed period, you save over £26,000 compared to staying on the SVR. Even after accounting for an arrangement fee of £1,000 and a solicitor fee of £300, you are still ahead by roughly £25,000.

The numbers speak for themselves. Staying on a SVR when you don’t have to is one of the most expensive forms of financial laziness there is.

The remortgage process, step by step

Check your current deal. When does it end? Is there an ERC? What is the SVR?
Get a Decision in Principle (DIP). This soft check confirms roughly how much you can borrow and at what rate. It does not affect your credit score.
Compare deals. Use a broker or comparison sites. Look at the total cost over the deal period, not just the headline rate.
Apply. Submit your application with proof of income, bank statements, and ID. If you are doing a product transfer with your existing lender, this is much simpler.
Valuation. The new lender will value your property to confirm the LTV.
Legal work. A solicitor handles the transfer of the mortgage from one lender to another.
Completion. Your new mortgage starts. Set up the new direct debit and relax.

The whole process typically takes 4 to 8 weeks. Most of that is waiting. The actual time you spend filling in forms and gathering documents is a few hours.

Don’t let inertia cost you

The single biggest mistake people make with mortgages is doing nothing. They let the fix end, drift onto the SVR, and tell themselves they’ll “sort it next month.” Every month on the SVR is money you are giving to the bank for free.

Set a reminder in your phone 6 months before your deal ends. Speak to a broker. Run the numbers. It takes a couple of hours and could save you thousands.

Remortgaging: When to Switch and How to Save Thousands