What remortgaging actually means
Remortgaging simply means switching your existing mortgage to a new deal — either with your current lender (called a product transfer) or with a different one. People remortgage for a few different reasons: because their current fixed rate is coming to an end, because they want a more competitive rate, or because they want to borrow additional money against their property.
It’s one of the most common financial decisions homeowners make, and it’s worth doing properly. A small difference in interest rate across the remaining term of a mortgage can mean thousands of pounds.
The SVR problem — why timing matters
Every fixed rate mortgage has an end date. When it expires, your lender automatically moves you onto their Standard Variable Rate (SVR) — and that rate is almost always significantly higher than whatever you were paying before.
Most lenders’ SVRs sit several percentage points above the best available fixed rates on the market. For many borrowers, sitting on the SVR for even a few months costs more than the savings they’d make staying put. It’s not a penalty as such — it’s just how lenders price their default rates.
Mortgage balance: £250,000 — 20 years remaining
New fixed rate: 4.25% — monthly payment approx £1,540
Typical SVR: 7.50% — monthly payment approx £2,000
That’s roughly £460 per month more — or over £5,500 per year — for doing nothing.
The point isn’t to panic — it’s to act early enough that you’re not scrambling at the last minute. Starting your review around three to six months before your rate ends gives you time to compare the market properly and get a new deal secured before the SVR kicks in.
Product transfer or switch lender?
This is the central question when remortgaging, and the answer isn’t always obvious.
Product transfer (staying with your existing lender)
A product transfer means moving onto a new deal with your current lender. It’s usually faster and simpler — no legal work required, no new valuation in most cases, and you can often lock in a new rate several months before your current one expires.
The downside is that you’re limited to whatever that lender is offering. They don’t have to be competitive — they know you might not bother switching — and in many cases they aren’t.
Switching lender
Switching lender involves a full remortgage application with a new provider. It takes a little longer and usually involves some legal work (though many lenders offer free legal services as part of the deal). In return, you get access to the whole market — not just what your current lender is willing to offer.
We always check both options. Sometimes a product transfer genuinely is the right call — particularly if your circumstances have changed, your property has unusual features, or the timing works better. But we won’t recommend it just because it’s easier.
A product transfer pays us a slightly lower commission than a full remortgage — but it also involves less work, so that’s fair. Our recommendation is always based on which option is right for your situation, not which one pays more.
Remortgaging to borrow more
As well as switching to a better rate, remortgaging can be used to borrow additional money against your property. If your home has increased in value since you bought it, or if you’ve paid down a significant portion of the mortgage, you may be able to borrow more than your current remaining mortgage balance.
Common reasons for borrowing more through a remortgage include:
- Home improvements — extensions, loft conversions, kitchens
- Helping children with deposits or university costs
- Consolidating higher-rate debts into the mortgage
- Buying a second property or investment
It’s worth being clear about what this means: you’re borrowing more against your home, which increases your mortgage balance and your monthly payments. For home improvements that add value, or for replacing expensive short-term debt with cheaper long-term borrowing, it can make a lot of sense. We’ll always make sure the numbers stack up before recommending it.
What if my circumstances have changed?
Life changes between mortgages. You might earn more now than when you first applied, or less. You might have changed jobs, become self-employed, had children, separated, or changed how you use the property. All of these can affect your remortgage options.
The key is understanding how your current situation looks to lenders — and which lenders will view it most favourably. That’s particularly relevant if your income has become more complex: contractors, self-employed borrowers, or those with multiple income streams often find that the same lender who gave them their original mortgage is no longer the best fit.
We’ll assess your full picture before making any recommendation.
What about early repayment charges?
If you’re thinking about remortgaging before your current deal ends, you need to check whether an Early Repayment Charge (ERC) applies. Most fixed rate mortgages have ERCs during the fixed period — typically a percentage of the remaining mortgage balance, reducing year by year.
An ERC isn’t automatically a reason not to remortgage early. If rates have moved significantly, or if your circumstances make a different product much more suitable, the saving from switching can outweigh the charge. We’ll always run the numbers so you can make an informed decision.
Understanding the true cost — not just the rate
The headline interest rate is only part of the picture. A mortgage with a slightly higher rate but no arrangement fee can work out cheaper than one with a low rate and a £1,500 fee — depending on the loan size and term.
We present remortgage options on a true cost basis — monthly payment, total cost over the fixed period, and any fees factored in — so you can compare like for like rather than chasing a headline number.
We don’t charge a broker fee for remortgages. Call us on 01277 564 054 to talk through your options.
How long does the process take?
A straightforward remortgage with no additional borrowing typically takes four to six weeks from application to completion. Switching lender with legal work adds a little time; a product transfer with your existing lender can sometimes be done in days.
The important thing is to start the process in good time. If you wait until the month your fixed rate expires, you risk sitting on the SVR for several weeks while the paperwork catches up. Starting three to six months ahead gives you flexibility without locking in unnecessarily early.
Our fee for remortgage advice
There is no broker fee for remortgage or product transfer advice. We are paid a commission by the lender when a mortgage completes. That applies whether you switch lender or do a product transfer with your existing one.
Initial conversations are always free.
Frequently asked questions
Around three to six months before your current fixed rate ends. This gives you enough time to compare the market, find the right product, and have everything in place before your rate expires.
It depends. A product transfer with your existing lender can be quick and avoid legal fees — but it may not be the most competitive option. We always compare both routes and will tell you honestly which one works best.
Yes, provided you have sufficient equity and the additional borrowing is affordable. Equity can be used for home improvements, helping family, debt consolidation, or other purposes.
Yes. Self-employed remortgages work in the same way as self-employed purchases. We know which lenders suit different income structures and will match you to the right one.
There can be — some products carry arrangement fees, valuation fees, or legal costs. We always present the full cost comparison so you can see whether switching is genuinely worthwhile after all fees are accounted for.
Most remortgages complete within four to eight weeks, depending on the lender and whether legal work is required. Starting three to six months before your rate expires gives you plenty of time.
No. There is no broker fee for remortgage or product transfer advice. We are paid a commission by the lender. Initial conversations are always free.