What Is Remortgaging and How Does It Work?

A remortgage is when you replace the mortgage on your current home with a new mortgage from a different lender. You stay in the same property, but the new mortgage is used to repay the one you already have.

People often consider remortgaging when a fixed or introductory deal is coming to an end, although there are other reasons to switch. You might want different mortgage features, your circumstances may have changed, or you may want to borrow more against your home.

Remortgaging doesn’t automatically mean you’ll save money. The new rate, fees, mortgage term and any charges for leaving your existing deal can all affect whether switching makes financial sense.

So what is a remortgage?

In a standard residential remortgage, you take out a new mortgage with another lender without moving home. The money from the new mortgage repays the outstanding balance with your existing lender, and you then make your mortgage payments to the new lender.

This is different from a product transfer, where you stay with your current lender but move onto another of its mortgage products.

When we look at a remortgage, we’d usually start with your existing mortgage balance, the deal you’re currently on, when that deal ends and an estimate of what your property is worth. These give us a useful starting point for understanding the options available.

Why do people remortgage?

One of the most common reasons to explore remortgaging is that an existing fixed or discounted mortgage deal is approaching its end. Rather than automatically moving onto the lender’s reversion rate, a homeowner may want to compare other options.

There are other reasons too. You might consider remortgaging because:

Your current mortgage no longer suits your circumstances.
You want different features or greater flexibility.
You want to change the mortgage term.
You want to change the repayment structure, where appropriate.
You want to increase the amount you’re borrowing.
You want to see whether another mortgage could reduce your costs.

That last point isn’t guaranteed. MoneyHelper’s guidance on remortgaging recommends considering the costs of switching rather than looking only at the headline interest rate.

How does remortgaging work?

The exact remortgage process can vary between lenders and applications, but it will usually involve the following steps:

Review your current mortgage. Check the mortgage balance, current deal and deal-end date.
Estimate your property’s value. This helps you work out your approximate loan-to-value ratio.
Decide how much you need to borrow. You may simply replace the existing mortgage or apply to borrow more.
Review your circumstances. Income, expenditure, debts and other commitments may affect affordability.
Compare your options. This can include products available from your existing lender as well as mortgages from other lenders.
Apply for the new mortgage. The new lender will assess the application against its criteria.
The property is valued. The lender will normally need to establish whether the property provides suitable security for the mortgage.
Underwriting takes place. The lender assesses the borrowers, property and proposed mortgage.
Legal work is completed. This includes arranging for the existing mortgage to be redeemed.
The new mortgage completes. The new lender repays the old mortgage and your new mortgage begins.

What will lenders check when you remortgage?

Changing lender will normally involve the new lender assessing both your financial circumstances and the property.

Some of the main factors a lender may consider include:

Factor	Why it can matter
Income	Helps determine affordability
Existing debts	Can reduce available borrowing
Property value	Used to calculate LTV
Credit history	Can affect lender and product availability
Extra borrowing	May change affordability and lender criteria
Mortgage term	Affects repayments and overall borrowing cost

A lender may also look at your employment, regular expenditure, age and retirement plans where relevant, and the type and condition of the property.

If you’re self-employed, the lender will also need to assess the income it can use for affordability. Different lenders can approach this differently.

We’d also want to understand what’s changed since you took out your existing mortgage. A higher income could improve affordability, for example, while new loans, childcare costs or changes to your credit history could affect the options available.

If credit is a concern, our guide to the credit score for a mortgage explains what lenders may consider.

How does LTV affect a remortgage?

Loan-to-value, or LTV, compares the amount you owe with the value of your property.

For example:

Estimated property value: £300,000
Mortgage remaining: £180,000
Approximate LTV: 60%

As you repay your mortgage, your LTV may fall. An increase in your property’s value could also reduce your LTV, while a decrease in value could increase it.

LTV can affect which lenders and mortgage products are available, although a lower LTV doesn’t guarantee a particular rate or mortgage.

Is remortgaging always cheaper?

No. A mortgage with a lower interest rate isn’t automatically cheaper overall.

When comparing a remortgage, costs can include:

The new mortgage’s product or arrangement fee.
An early repayment charge on your existing mortgage.
Account closure or exit fees where applicable.
Valuation costs.
Legal or conveyancing costs.
Broker fees where applicable.
The length of the new mortgage term.

Cashback or fee-assisted products can also change the comparison.

In practice, we’d usually compare the overall cost rather than simply choosing the mortgage with the lowest headline rate. How much you owe and how long you expect to keep the new mortgage can make a significant difference.

Our remortgage calculator can help you compare how different rates, fees and mortgage terms could affect the numbers.

Can lower monthly payments mean paying more overall?

Yes. A lower monthly payment doesn’t necessarily mean a cheaper mortgage overall.

For example, extending the mortgage term could reduce the amount you repay each month, but interest would then be charged over a longer period. That can increase the total amount repaid over the life of the mortgage.

Both government Mortgage Charter guidance and the FCA highlight the potential longer-term cost of extending a mortgage term.

Can you borrow more when remortgaging?

You may be able to apply for additional borrowing as part of a remortgage.

Homeowners sometimes explore this for purposes such as home improvements, buying out another owner or other significant expenditure.

If you’re looking to borrow more, we’d also ask what the additional money is for. That’s because lender criteria can differ depending on whether you’re simply replacing the existing mortgage or increasing your borrowing, and the purpose of the extra borrowing can also matter.

Some people consider using additional mortgage borrowing to repay unsecured debts. Doing this converts unsecured borrowing into debt secured against your home and may mean repaying it over a longer period, potentially increasing the total amount you repay.

What’s the difference between remortgaging and a product transfer?

A remortgage normally means replacing your existing mortgage with one from a different lender.

A product transfer means staying with your current lender but moving onto another of its mortgage products.

A product transfer can sometimes involve fewer checks where the borrowing and other important details aren’t changing. A remortgage, meanwhile, allows you to consider suitable products from other lenders.

Neither is automatically the better option. The useful comparison is the overall cost, suitability and relevant lender criteria rather than simply choosing whichever process looks easiest.

When should you start looking at remortgaging?

It can make sense to review your mortgage before your existing deal actually ends rather than leaving it until the final few weeks.

Under the 2026 Mortgage Charter, participating lenders may allow eligible customers approaching the end of a fixed deal to lock in a new deal up to six months ahead. Your lender can tell you when its options become available.

That doesn’t mean every borrower can arrange any remortgage six months in advance. Timings vary between lenders and applications, and an early repayment charge may still be relevant if you’re considering leaving your existing mortgage early.

Our mortgage rate change calculator can help you estimate how your repayments could change at a different mortgage rate.

What if your circumstances have changed?

Your circumstances today may be very different from when you originally took out your mortgage.

For example, you may now be self-employed, have changed jobs, taken on new borrowing, had children, experienced changes to your income or be approaching retirement.

We wouldn’t assume that because you qualified for your current mortgage you’ll automatically qualify for the same borrowing with another lender. We’d look at your circumstances as they are now, because different lenders can also assess the same situation differently.

If you’ve become self-employed since taking out your mortgage, our guide to getting a mortgage when self-employed explains some of the additional considerations.

How can a mortgage broker help with remortgaging?

A mortgage broker can review your existing mortgage, understand how much you still owe and consider your property’s value and approximate LTV.

They can also look at your current income and commitments, check how additional borrowing could affect the options available, compare relevant lender criteria and consider fees alongside headline rates.

A broker can then compare suitable options from the lenders they have access to and help with the application process.

If you’re considering changing lender, our remortgage advice service explains how we can help you review your current mortgage and explore your options.

Frequently asked questions

What does remortgaging mean?

Remortgaging means replacing the mortgage on your existing home with a new mortgage from another lender. You don’t move property: the new mortgage repays the existing one and takes its place.

Do you have to change lender to remortgage?

In the usual consumer definition, a remortgage involves moving your mortgage to a different lender. Moving onto another mortgage product with your existing lender is generally known as a product transfer.

Do you need a deposit to remortgage?

You don’t normally need another cash deposit in the same way as when buying a home. Instead, lenders look at the equity in your property and the resulting loan-to-value ratio.

Does remortgaging affect your credit score?

Applying for a mortgage with a new lender may involve credit searches as part of the application process. The type and timing of searches can vary, so you shouldn’t assume every lender follows exactly the same process.

Can you remortgage before your fixed rate ends?

Potentially. However, an early repayment charge may apply if you leave your existing mortgage before the end of the deal. The costs of switching early should be compared with any potential benefit.

Can you remortgage and borrow more money?

Potentially, provided the additional borrowing meets the lender’s affordability, LTV and other criteria. The purpose of the extra borrowing can also affect which lenders or products are available.

What is remortgaging and how does it work?