Remortgaging is simply the process of moving your existing mortgage to a new deal—either with your current lender or a different one.

Homeowners remortgage for all sorts of reasons: to cut monthly payments, raise extra cash for home improvements, or switch from a variable to a fixed rate for peace of mind.

Done well, it can save thousands of pounds over the life of your loan; done poorly, it can back-fire through hefty fees or higher long-term costs.

In this guide we’ll explore eight core topics: why you might remortgage, how lenders assess you, the costs involved, and the common pitfalls to avoid.

Where helpful, we’ll sign-post independent TimeBank resources—such as the live tracker of current interest rates and a rundown of alternative borrowing options—so you can dig deeper when the mood strikes.

Why People Choose to Remortgage

The most popular reason is to grab a cheaper rate when your initial fixed or tracker deal expires.

Falling from, say, 5 % to 4 % on a £200,000 balance could shave £100-plus off your monthly payment.

Others remortgage to fund renovations or consolidate higher-interest debts—effectively tapping their home’s equity at mortgage rates rather than credit-card rates.

Remortgaging can also help you shorten (or extend) your loan term, switch from interest-only to repayment, or add a spouse to the mortgage.

Each goal changes the maths, so run illustrations with the free TimeBank calculator before you lock in a new deal.

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When Is the Right Time?

Conventional wisdom says start shopping about six months before your current deal ends.

That’s because many lenders will “offer” a new mortgage now but let you draw down later, protecting today’s rate against future hikes.

If you’re on your lender’s standard variable rate (SVR), you’re likely paying more than you need to, so act sooner rather than later.

That said, remortgaging too early can trigger early-repayment charges (ERCs) of 1-5 % of your outstanding balance.

Compare any ERC to the savings on a cheaper rate to see if switching stacks up. TimeBank’s guide to borrowing costs lists every fee you’ll need to include in your calculation.

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How Lenders Assess Your Application

Even though you already have a mortgage, the new lender will underwrite you as if you were a brand-new borrower.

Expect affordability checks on income and outgoings, credit-score pulls, and a fresh valuation of your home.

The higher your loan-to-value (LTV), the pricier the rate, so paying down a chunk before applying can unlock cheaper deals.

For self-employed applicants, lenders usually want two years of accounts; retirees will need evidence of pension income.

If your situation is non-standard—or your credit history isn’t spotless—see TimeBank’s sensible tips on borrowing when your credit’s imperfect.

Many apply equally to mainstream remortgages.

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Fees & Hidden Costs

The headline rate is only half the story. Most remortgages include an arrangement fee (£0-£1,499), valuation fee (often free), legal fee (sometimes free via the lender’s panel solicitor) and possibly a broker fee.

These can wipe out the benefit of a tiny rate saving, so compare the total cost over the fixed period, not just the interest rate.

If raising extra funds, factor in any product fees on the additional borrowing. Independent brokers—especially those recommended in TimeBank’s list of trusted advisers and lenders—can show side-by-side costings to reveal the true winner.

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Equity Release vs. Capital-Raising Remortgage

Homeowners aged 55 + sometimes debate between a capital-raising remortgage and a lifetime mortgage (equity release).

A remortgage keeps monthly repayments—but usually at lower rates—whereas equity release rolls up interest with no mandatory payment.

The choice hinges on cash-flow, inheritance goals and age.

For a balanced view, read Is Equity Release a Good Idea? and then compare with your remortgage quote.

Remember: if you choose equity release, stick to providers that meet TimeBank’s standards and avoid those on the warning list.

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Fixed, Tracker or Variable—Which Is Best?

Fixed rates provide budgeting certainty: you’ll pay the same amount every month for two, five or even ten years.

Trackers follow Bank of England Base Rate, moving up or down each time the Monetary Policy Committee tweaks policy.

Variables sit somewhere between, following the lender’s internal rate.

Your risk tolerance and economic outlook determine the best fit.

If rates are falling—or you expect them to—tracker deals can save money.

For rate forecasts and market chatter, bookmark the TimeBank page on mortgage-rate predictions.

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Avoiding Common Pitfalls

The biggest mistake is focusing solely on the new rate and ignoring ERCs, fees or how long you’ll stay in the property.

Another is rolling unsecured debts into the mortgage without addressing spending habits—swapping 20 % card interest for 4 % mortgage interest sounds smart, but you’ll pay it for 20+ years unless you overpay.

Finally, be wary of product-transfer “loyalty” deals from your existing lender.

They’re hassle-free but often pricier than external offers. Use the Current Account Switch-type ease of remortgage legal packages to shop the whole market instead.

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The Remortgage Process Step by Step

1) Get your mortgage statement and credit report.

2) Use comparison tools or a broker to shortlist deals.

3) Obtain a Decision in Principle to gauge affordability.

4) Submit a full application; the lender will instruct a valuation.

5) Review and sign legal documents—many lenders provide free basic legal work.

6) Completion day: the new lender repays your old mortgage and your monthly payments switch automatically.

The whole journey can take 4-8 weeks if no hiccups occur.

Schedule it early to avoid lapsing onto an expensive SVR.

For a visual timeline, TimeBank’s article on the mortgage-switch process offers a handy checklist you can print and pin to the fridge.

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Common Questions

Conclusion

Remortgaging is one of the most powerful, underused money-saving tools available to UK homeowners.

Whether you’re chasing a lower rate, releasing capital or reshaping your loan term, the key is to weigh total costs against long-term goals—and to start shopping well before your current deal ends.

Armed with the resources and tips above, you’ll be able to decide confidently whether remortgaging is truly a “good idea” for you.