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Mortgages · 6 min read

What is a remortgage?

Replacing your current first-charge mortgage with a new deal — to cut the rate, to leave the SVR, or to raise money. Here is how it differs from a product transfer, and when you should not do it.

Last updated: September 2026

Key takeaways
  • ✔ A remortgage replaces the first charge; a product transfer keeps the same lender and account
  • ✔ Start looking six months before the current deal ends
  • ✔ An early repayment charge can wipe out the saving — run the remaining term, not just the new rate
  • ✔ Raising funds on a cheap existing rate is often cheaper as a second-charge loan
  • ✔ Comparing is free. If you proceed, the adviser fee is £499 on completion

The definition

A remortgage pays off your existing first-charge mortgage with a new one, usually from a different lender. The new lender takes over the first charge at HM Land Registry. Your monthly payment, rate, term and any product fee are set by the new deal.

People remortgage for three reasons: the current deal is ending and the revert rate is expensive; a cheaper rate is available now and the early repayment charge (if any) is worth paying; or they want to borrow more against the property.

Remortgage vs product transfer

Product transfer
  • ✔ Same lender, same account — faster, less paperwork
  • ✔ Often no solicitor, no valuation
  • ✔ Lighter affordability check in many cases
  • ✗ You only see that one lender's range
Remortgage
  • ✔ Whole-of-market rates
  • ✔ The route if you need to borrow more than your current lender allows
  • ✔ The route if that lender will not keep you
  • ✗ Valuation, legal work, and a full affordability check

Compare both. The product transfer is not automatically worse, and the remortgage is not automatically better. Fees decide it.

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The early repayment charge

Leave during a fix and you usually pay a percentage of the outstanding balance. A 3% charge on £200,000 is £6,000. That has to be earned back by the monthly saving before the new deal ends, or the switch is a loss dressed up as activity.

Worked briefly: £220,000 outstanding, 14 months left on a 4.8% fix, 2% ERC (£4,400). A new deal that saves £80 a month recoups £1,120 in those 14 months. Switching now is £3,280 worse. Waiting out the ERC is the better trade. The opposite is true when the remaining term is long and the rate gap is wide.

When a secured loan beats remortgaging

Remortgaging to raise extra money replaces the whole first charge. If that first charge is cheap and the ERC is painful, you are throwing away the cheap bit to get at the equity. A second-charge secured loan sits behind the existing mortgage, leaves it untouched, and funds the lump sum on its own terms.

That is usually the right structure for home improvements or a one-off bill when the first mortgage is still worth keeping. It is the wrong structure if the first mortgage itself is expensive or about to revert.

Frequently asked questions

What is a remortgage?
A remortgage replaces your existing first-charge mortgage with a new one, usually at a different lender. People remortgage to leave a standard variable rate, to get a cheaper fix, or to raise extra money against the property.
What is a product transfer?
Staying with your current lender on a new deal, on the same account. Faster and less paperwork than a remortgage, but you only see that one lender’s range. The cheaper option after fees is the right one — not the easier one.
When should I start looking?
Around six months before your current deal ends. That is long enough to get an offer that will still be valid at completion, and short enough that the quoted rate is still relevant.
Will I pay an early repayment charge?
If you leave during a fixed or discounted period, usually yes — often 1–5% of the outstanding balance. The switch only pays if the monthly saving over the remaining term beats that charge.
Can I remortgage to release equity?
Yes, if there is enough equity and the new loan still passes affordability. If the only reason is a lump sum and your current rate is cheap, a second-charge secured loan often costs less because it leaves the first charge alone.
How long does a remortgage take?
A product transfer can complete in two to three weeks. A remortgage to a new lender is typically four to six weeks, longer if the valuation or legal work snags.

Related guides

Guide
Secured loan vs remortgage

Speed, cost, fees and when a second charge wins.

Guide
How much can I borrow on a mortgage?

Income multiples and stress tests, including when raising extra.

Compare remortgage deals

Soft-search only. We put a product transfer next to a move, and tell you which one is cheaper after fees.

Compare remortgage options →
Important: This guide is for information only and does not constitute financial advice. Your home may be repossessed if you do not keep up repayments on your mortgage. CleverCompare is an introducer appointed representative of Charles Frank Finance Limited, which is authorised and regulated by the Financial Conduct Authority.
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