Remortgaging Top Tips 2025
During an era of fluctuating interest rates, differential house prices, and shrinking domestic budgets, remortgaging has become an essential financial ploy for homeowners in the UK. Whether you want to cut your monthly repayments, release equity, or just get a better deal, knowing how and when to remortgage is crucial.
But let’s be realistic: remortgaging is not something to tick a box every few years. It’s a cash move — one that can save you thousands or cost you more than you ever dreamed if done without care.
Here’s what you need to know — and what you need to do — to remortgage sensibly.
What is Remortgaging?
Remortgaging is where you transfer your current mortgage to a new agreement, either with the same lender or a different one. You’re not moving home; you’re simply reorganizing your loan. For most UK homeowners, it’s the least used way of enhancing financial health.
In most cases, the reason will be one of the following:
- Your fixed offer is coming to an end
- You require a lower interest rate
- You are consolidating debts
- You will need to pay for house repairs or some other big-ticket purchase
Whatever the temptation, though, there’s the golden rule: never let your mortgage slip onto the lender’s Standard Variable Rate (SVR). SVRs are usually nearly always more costly — and sometimes significantly more so — than the competitive tracker or fixed deals available.
When Should You Start Looking?
Ideally, six months before your existing deal expires. Most lenders will let you fix a rate that far in advance, allowing you to shop around and get your act together. Doing it at the last minute restricts your choices — and may leave you on that nightmare SVR.
Keep in mind, the remortgaging process takes between three and eight weeks, depending on how complicated your case is.
Important Remortgaging Facts
- 1. Find Out the Value of Your Property Today
The lender offers money based on loan-to-value (LTV) bands — the lower the LTV, the more attractive rates. If the value of your property has appreciated since the previous mortgage, you may find yourself in a lower LTV band and will receive cheaper-priced offers.
Ask a few estate agents what they think, and look at an online valuation website as a rough estimate. But if numbers are important, a proper valuation may be worth it.
- 2. Don’t Simply Visit Your Bank
Loyalty costs money in the mortgage market. Of course, your current lender will give you a “product transfer,” and sometimes that is the cheapest price with minimum fees. But cheapest isn’t always easiest.
Use an fee free independent broker — preferably one with access to the entire market — to shop around what’s available. Some of the best deals are direct-to-broker or not widely marketed.
- 3. Know the True Cost of the Deal
A low interest rate is wonderful — but always consider the total cost over the life of the deal. That is:
- Arrangement fees (typically £999+)
- Legal fees
- Valuation fees (occasionally waived)
- Early repayment charges on your current mortgage
A truthful broker will calculate the “effective rate” or true cost over the agreed term, as opposed to the headline rate.
- 4. Plan Ahead – Not Just For Now
It is easy to lock in for the minimum amount of time at the most favorable interest rate, but that will not work best for your case. Are you moving, remodeling, or experiencing other big financial changes down the road?
For peace of mind, five-year fixes are best in a rising interest rate environment. But if you prefer flexibility and believe that rates might drop, an all-too-brief term or tracker mortgage is the future.
- 5. Don’t Borrow More Than You Need — But Know You Can
Remortgaging is a good method of releasing equity. If it’s for home improvements, purchasing a second home, or debt consolidation, it’s generally less expensive than a personal loan.
All the same, taking unsecured borrowing and incorporating it into your mortgage — even at a lower rate — means you’re securing the debt against your home. If you’re going to do this, it should be part of a longer-term financial strategy.
- 6. Keep Your Credit in Good Health
Check your credit history before applying. Pay off credit cards, avoid new credit and ensure electoral roll inclusion. Forgetting a few payments on a mobile phone can lead to issues when remortgaging.
Lenders are nervous — particularly in volatile markets — so appearing a reliable borrower is crucial.
Pitfalls to Avoid
- Complacency: Too many homeowners fall onto the SVR and overpay for months or years.
- Over-leveraging: Borrowing too much can result in increased payments and financial pressure.
- Chasing the rate: The lowest rate is not always the best offer — look at charges, term, and flexibility.
- DIY-ing it: Some borrowers approach lenders directly and lose out on a better deal than their broker would achieve.
Final Thought: Don’t Set It and Forget It
A mortgage is the biggest financial commitment most of us will ever have to make — yet far too many treat it as a “fit and forget” option. In reality, you should treat your mortgage in exactly the same way as you treat your savings, insurance, or pension: check it regularly and make it suit your needs.
Remortgaging is not a hassle — it’s a option. Good advice, planning, and strategy can make it the smartest money move you make this year.
