Remortgaging is the process of replacing your existing mortgage with a new deal, either with your current lender or a new one. It usually happens when a fixed or tracker rate ends. The aim is typically to move away from a lender’s standard variable rate and secure a more suitable mortgage.
Remortgaging is a routine part of home ownership in the UK, yet many homeowners are unsure what actually happens behind the scenes. This guide explains how remortgaging works in practice, what steps are involved, how long it usually takes, and what to expect at each stage, without assuming that remortgaging is right for everyone.
What Is Remortgaging?
Remortgaging means taking out a new mortgage to replace your existing one on the same property. This can be done with your current lender or by switching to a different lender.
Most homeowners remortgage when their current deal ends, such as a two-year or five-year fixed rate. If no action is taken, the mortgage usually reverts to the lender’s standard variable rate, which is often higher and less predictable.
Remortgaging allows borrowers to review available deals and move onto a new rate and set of terms.
When Do Homeowners Usually Remortgage?
The most common time to remortgage is near the end of a fixed, tracker, or discounted deal. Many borrowers start reviewing their options around three to six months before their deal ends.
Some homeowners also remortgage to make changes to their mortgage, such as borrowing additional funds, adjusting the term, or changing the type of mortgage. Others remortgage because their circumstances have changed or because their property value has increased, improving their loan to value.
Step 1: Reviewing Your Current Mortgage
The first step in the remortgage process is understanding your existing mortgage.
This includes checking:
- When your current deal ends
- Whether early repayment charges apply
- Your current interest rate and monthly payment
- The remaining mortgage balance
Knowing this information helps establish when a remortgage can take place and whether there are any timing considerations.
Step 2: Comparing Remortgage Options
Once timing is clear, homeowners typically compare available options.
This may involve:
- Looking at new deals from the current lender, referred to as a “product transfer”
- Comparing remortgage deals from other lenders
- Reviewing interest rates, fees, and deal length
At this stage, it is common to look beyond the headline rate and consider the overall cost over the deal period.
Step 3: Applying for a Remortgage
If switching lender, the remortgage is treated as a new mortgage application.
The lender will usually assess:
- Income and employment
- Monthly outgoings and financial commitments
- Credit history
- Property value and loan-to-value
If staying with the same lender on a product transfer, these checks are often reduced, provided nothing else is changing.
Step 4: Property Valuation
Most remortgages involve a property valuation. This helps the lender confirm the property’s value and calculate the loan-to-value (LTV).
Valuations can range from automated desktop assessments to physical inspections, depending on the lender and the property. In some cases, the lender may not require a new valuation at all.
The valuation outcome can affect which rates are available.
Step 5: Legal Work and Mortgage Offer
If you are switching lender, legal work is required to replace the existing mortgage on the property.
This is usually handled by a solicitor or conveyancer. Many remortgage deals include free legal work, although this is not always the case.
Once checks are complete, the lender issues a mortgage offer. This outlines the terms, interest rate, fees, and conditions of the new mortgage.
Step 6: Completion and Switching Over
On completion, the new mortgage pays off the old one. From this point, monthly payments move to the new lender or onto the new rate with the existing lender.
The homeowner does not need to take any action on completion day, as the legal process handles the transfer behind the scenes.
How Long Does Remortgaging Take?
Timescales vary, but a typical remortgage with a new lender often takes between four and eight weeks.
Product transfers with an existing lender can be much quicker, sometimes completing within days or weeks, as legal work is usually not required.
Delays can occur if additional documents are needed, valuations are delayed, or circumstances are more complex.
What Happens If You Do Nothing?
If no action is taken when a mortgage deal ends, the mortgage usually moves onto the lender’s standard variable rate.
Standard variable rates are often higher than fixed or tracker deals and can change at the lender’s discretion. This is why many homeowners review remortgage options before their current deal expires.
Where Advice Fits Into the Process
Some homeowners handle remortgaging themselves, particularly when arranging a product transfer. Others prefer support when comparing deals or switching lender.
For homeowners who want support understanding the remortgaging process and the options available, our Best Mortgage Advisers for Remortgages Guide provides an overview of advisers experienced in reviewing remortgages, explaining how the process works, and helping borrowers navigate each stage with clarity.
Conclusion
Remortgaging works by replacing your existing mortgage with a new deal, either with your current lender or a new one. The process usually involves reviewing options, applying for a new deal, completing valuation and legal steps, and switching onto updated terms.
Understanding how remortgaging actually works can help homeowners plan ahead, avoid unnecessary costs, and approach the end of a mortgage deal with greater confidence.
