Should You Remortgage in 2026? A Complete Guide to Switching Your Mortgage

Published 2026-04-10 · Housing Calc Pro

Remortgaging — switching your mortgage to a new deal, either with your current lender or a different one — is one of the most effective ways to reduce your housing costs. With an estimated 1.6 million UK homeowners on their lender's expensive Standard Variable Rate, the potential savings are substantial.

When Should You Consider Remortgaging?

The most common trigger is reaching the end of your current fixed-rate or introductory deal. When your initial rate expires, you are automatically moved to your lender's SVR, which is typically 2-3 percentage points higher. On a £200,000 mortgage, moving from a 4.5% fixed rate to a 7% SVR would increase your monthly payments by approximately £315. Other good reasons to remortgage include wanting to borrow more (for home improvements or debt consolidation), needing to reduce your monthly payments, wanting to switch from a variable to a fixed rate (or vice versa), or wanting to overpay and your current lender does not allow it.

The Remortgaging Process

Start researching new deals 3-4 months before your current rate expires. Most lenders will lock in a rate for 3-6 months, so you can secure a deal early without committing. The process typically follows these steps: research deals and compare rates using comparison tools or a broker, apply for a new mortgage (the lender will conduct affordability checks and a property valuation), instruct a solicitor to handle the legal transfer (many lenders offer free legal work for remortgage customers), your new lender pays off your existing mortgage directly, and your new deal begins.

Costs to Consider

Remortgaging is not free, so you need to ensure the savings outweigh the costs. Common costs include early repayment charges on your current mortgage (typically 1-5% of the outstanding balance during the initial deal period), arrangement fees on your new mortgage (£0-£2,000 depending on the deal), valuation fees (£0-£500, though many lenders offer free valuations), and legal fees (£0-£500, often covered by the new lender). The key calculation is simple: total cost of switching versus total savings over the new deal period. If you save £150 per month on a 2-year fix but pay £1,500 in fees, you break even after 10 months and save £2,100 over the full 2 years.

When Remortgaging Might Not Make Sense

Remortgaging is not always the right move. It may not be worthwhile if you have less than 6 months left on your current deal (the costs may outweigh the savings), your property has fallen in value and you now have less than 10% equity, your financial circumstances have changed and you may not pass affordability checks, or the early repayment charge on your current deal is prohibitively high. In these cases, consider a product transfer with your existing lender instead. While their rates may not be the absolute cheapest, they will not require a new affordability assessment or valuation.