Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
Remortgage or product transfer?
A remortgage replaces your current mortgage with a new one, usually with a different lender. A product transfer keeps the same lender and account and only changes the deal on top. Both can reduce your monthly payment, but they are not interchangeable.
Product transfers are usually quicker and simpler: often no solicitor, no valuation and a lighter affordability check. But your current lender may not offer the best rate available. A remortgage to a new lender opens up the wider market, and it may be the only route if you want to borrow more than your current lender will allow.
Early repayment charges
If you are still within a fixed or discounted period, leaving usually costs an early repayment charge (ERC), set as a percentage of the outstanding balance that often reduces as the deal ages. For example, a 3% charge on a £200,000 balance would be £6,000.
That cost has to be recovered by the saving on the new deal before switching makes sense. Often it is cheaper to wait until the current deal ends, or to arrange a new deal in advance that starts when the ERC period finishes. Your mortgage offer or annual statement shows the charge and when it ends.
Raising money: remortgage or secured loan?
Remortgaging to release equity replaces the whole mortgage. If your current deal has a low rate and a large early repayment charge, you could lose that rate to raise a comparatively small amount.
A second charge secured loan sits alongside your existing mortgage and leaves it untouched. It can suit home improvements or other lump sums when the main mortgage is worth keeping, though secured loans often cost more than mortgage rates. If your current mortgage is about to end anyway, raising the extra as part of a remortgage may be simpler. Either way, the borrowing is secured on your home.
What it costs to switch
- Product or arrangement fee — sometimes added to the loan, which means paying interest on it.
- Valuation — often free on remortgage products, but not always.
- Legal fees — frequently included on remortgage deals; check rather than assume.
- Early repayment charge on your current deal, if you leave before it ends.
- Broker fees, if you use a broker that charges one.
Getting help
Comparing a no-fee deal at a slightly higher rate against a lower rate with a large fee over the length of the deal is often where the real saving is. A regulated mortgage broker can compare the wider market for you, and MoneyHelper (moneyhelper.org.uk) has free, impartial guidance on remortgaging.
Remortgage guides
Common questions
When should I start looking at a remortgage?
When should I start looking at a remortgage?
Around six months before your current deal ends. Many lenders let you secure a new deal that far in advance, which gives time for the application and legal work. Leaving it late risks a spell on the standard variable rate.
Will I pay an early repayment charge if I remortgage now?
Will I pay an early repayment charge if I remortgage now?
If you are still within a fixed or discounted period, usually yes. The charge is normally a percentage of the outstanding balance. Whether switching early makes sense depends on whether the saving outweighs the charge.
What is a product transfer, and is it better?
What is a product transfer, and is it better?
A product transfer is moving to a new deal with your current lender. It is usually faster and needs less paperwork, but you are limited to that lender's range. A remortgage to a new lender opens up the rest of the market. The better option is whichever costs less overall after fees.
Can I remortgage to release equity?
Can I remortgage to release equity?
Yes, if you have enough equity and the larger loan passes affordability checks. If your current rate is low and you only need a lump sum, a second charge secured loan may be worth comparing, as it leaves your existing mortgage in place.
Can I remortgage with bad credit?
Can I remortgage with bad credit?
Often, especially if the issues are older and you have built up equity. Some mainstream lenders may decline cases that specialist lenders will consider. Recent arrears on your current mortgage are usually the hardest to overcome. A product transfer with your existing lender may involve fewer credit checks.
How long does a remortgage take?
How long does a remortgage take?
A product transfer can often be arranged within a few weeks. Moving to a new lender usually takes longer because of the valuation and legal work. Starting early helps avoid a gap on the standard variable rate.
What happens if I do nothing when my deal ends?
What happens if I do nothing when my deal ends?
Your mortgage usually moves onto the lender's standard variable rate, which is typically higher than a new fixed or tracker deal. You can normally switch away from it without an early repayment charge.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
Important: This page is general information, not financial advice or a personal recommendation. Product features and eligibility vary by provider — check the provider's own terms before you buy or apply. Early repayment charges, product fees and rates vary between lenders and change over time.