Remortgage guide: everything you need to know

Thinking about swapping your current mortgage for a new deal? That’s called a remortgage, and it can lower your monthly payment, free up cash, or let you tap into home equity. It’s not just for homeowners with trouble paying – many use it to lock in a lower rate when the market shifts.

Before you start, ask yourself: do you want a cheaper rate, need extra cash, or want to switch from a variable to a fixed deal? Your answer will shape the whole process.

When does remortgaging make sense?

If the interest rates you can get now are at least 0.5% lower than your current one, you could save hundreds each month. A simple calculator can show the break‑even point – usually two to three years for most borrowers. Also, if you’ve built up equity, you might consider a cash‑out remortgage to pay off high‑interest debt. Our article “Remortgage to Pay Off Debt” explains how that works and the risks involved.

Homeowners near the end of an introductory fixed term often remortgage to avoid reverting to a higher variable rate. And if you plan to move in a few years, a shorter‑term deal could keep you flexible.

Steps to a successful remortgage

1. Check your credit score. Lenders look at your recent history, so clear any errors and pay down small balances first.

2. Gather paperwork. You’ll need recent payslips, tax returns, bank statements, and details of your current mortgage.

3. Shop around. Use comparison tools and read reviews. Our “Lowest Mortgage Rates” piece lists the top providers for 2025, so you can spot the best offers quickly.

4. Calculate total costs. Front‑end fees, valuation charges, and early repayment penalties can eat into savings. Add them up and compare against the interest savings.

5. Apply. Submit the application, wait for the valuation, and review the offer. If everything looks good, sign the contract and let the new lender handle the transfer.

6. Plan the new payment schedule. Set up direct debits early to avoid missed payments during the handover.

Remember, a remortgage is a legal agreement. Read the fine print on early repayment charges – they can be steep in the first few years.

Finally, keep an eye on the market even after you lock in a deal. If rates drop dramatically, a second remortgage could still be worth it, but weigh the costs again.

Remortgaging isn’t a one‑size‑fits‑all solution, but with the right numbers and a clear goal, it can lower your bills, reduce debt, and give you more control over your finances.