Why do people remortgage?
There are several common reasons homeowners choose to remortgage. The most frequent is to secure a lower interest rate when a fixed-rate or discounted deal ends, but remortgaging can also help you release equity, consolidate debts, or fund major home improvements. Use the repayment calculator to see what a new rate would mean for your monthly payment.
Common reasons to remortgage
Lower your rate
- Avoid moving onto your lender’s SVR
- Lock in a competitive fixed or tracker rate
- Reduce monthly payments or overall interest
Fund home improvements
- Borrow against your property’s equity
- Add value through extensions or renovations
- Often cheaper than a personal loan
Release equity
- Access cash tied up in your property
- Help family members onto the property ladder
- Invest in buy-to-let or other ventures
Consolidate debts
- Roll credit cards or loans into your mortgage
- One lower monthly payment instead of several
- Potentially reduce overall interest costs
Debt consolidation — think carefully
Consolidating unsecured debts into your mortgage means you’re securing them against your home. You could pay more interest over the full mortgage term, even if monthly payments drop. Always weigh the total cost before committing.
Product transfer vs full remortgage: which is better?
A product transfer keeps you with your current lender on a new deal. A full remortgage moves you to a different lender entirely. Both have pros and cons, and the right choice depends on your circumstances — compare current deals across the market before you decide.
A product transfer keeps you with your current lender on a new deal — usually with less paperwork and no legal costs. A full remortgage moves you to a different lender entirely, which may unlock better rates but involves a new application, valuation, and conveyancing.
How they compare
| Product transfer | Full remortgage |
|---|---|
| Stay with your current lender | Switch to a new lender |
| Minimal paperwork — often done online or by phone | Full application, credit check, and affordability assessment |
| No solicitor or valuation fees | Legal work and valuation required (often free via lender) |
| Usually faster (days rather than weeks) | Takes 4–8 weeks on average |
| Limited to what your lender offers | Access to the whole market |
| May not be the cheapest rate on the market | May secure a significantly better rate |
Let a broker compare both
At Clearview Mortgage Solutions we’ll compare your current lender’s product-transfer rates against the whole market, so you can see exactly which option saves you the most.
How does the remortgage process work?
Whether you’re switching lenders or staying put, here’s a typical remortgage timeline from start to finish.
- 01
Review your current deal
Check when your existing rate ends and whether any early repayment charges (ERCs) apply. Your annual mortgage statement or lender portal will show this.
- 02
Research your options
Compare product transfers from your current lender with remortgage deals across the market. A broker can do this quickly and factor in fees, cashback, and rate differences.
- 03
Get a Decision in Principle
If you’re moving to a new lender, they’ll run a soft credit search to give you an indication of how much they’ll lend. This doesn’t affect your credit score.
- 04
Submit your full application
Provide proof of income, bank statements, ID, and details of your property. The lender will carry out a full credit check and affordability assessment.
- 05
Valuation and legal work
The new lender will value your property (often at no cost to you) and appoint a solicitor to handle the legal transfer. Many lenders offer free legal work for straightforward remortgages.
- 06
Completion
Once everything is approved, the new lender pays off your old mortgage and your new deal begins. Your monthly payments switch to the new lender and rate.
What does remortgaging cost?
Remortgaging isn’t always free, but many of the costs are either avoidable or covered by the new lender. Here’s what you might pay.
Typical remortgage costs
Some lenders offer cashback on completion which can offset arrangement or legal fees. A broker can help you calculate the true cost of switching, including any ERCs.
How long does remortgaging take?
The timeline depends on whether you’re doing a product transfer or a full remortgage with a new lender.
Start looking at remortgage options at least three months before your current deal expires. Many lenders will hold a rate for up to six months, so there’s no harm in securing a good deal early.
What are early repayment charges and how do they affect remortgaging?
An early repayment charge (ERC) is a fee your current lender may charge if you leave your mortgage deal before it ends. ERCs are usually a percentage of the outstanding balance and decrease each year of the deal.
For example, a five-year fix might have a 5% ERC in year one, dropping to 1% in year five. On a £200,000 mortgage, a 3% ERC would cost £6,000 — so it’s crucial to factor this in when deciding whether to remortgage early.
If your deal has already ended and you’re on your lender’s SVR, there is usually no ERC to pay. This is one of the most common and straightforward times to remortgage.
An early repayment charge (ERC) is a fee your current lender may charge if you leave your mortgage deal before it ends. ERCs are usually a percentage of the outstanding balance and decrease each year of the deal.
For example, a five-year fix might have a 5% ERC in year one, dropping to 1% in year five. On a £200,000 mortgage, a 3% ERC would cost £6,000 — so it’s crucial to factor this in when deciding whether to remortgage early.
Don’t assume you should wait
Even with an ERC, the savings from a lower rate can sometimes outweigh the charge. A broker can do the maths for you and tell you whether it’s worth switching now or waiting until your deal ends.
Speak to a remortgage specialist
Whether you’re looking to cut your monthly payments, release equity, or simply avoid falling onto your lender’s SVR, a remortgage broker can help you find the right deal. At Clearview Mortgage Solutions, we compare rates from 90+ UK lenders and handle the process from application to completion.
We saved over £200 a month just by switching lender when our fix ended. We had no idea there were so many options until our broker showed us.
At Clearview Mortgage Solutions, our CeMAP-qualified brokers compare remortgage deals from 90+ UK lenders. We’ll review your current deal, explain your options in plain English, and handle the paperwork from start to finish — no obligation.