Use the calculator
Try the Remortgage Savings Calculator to put these concepts into practice.
Key takeaways
- ✓Start the remortgage process 3–6 months before your current deal expires
- ✓Reverting to the lender's SVR can cost an extra £200–£500/month compared to new fixed deals
- ✓Switching lenders typically takes 4–8 weeks; product transfers are faster
- ✓ERCs apply if you exit a fixed rate before the deal end date
- ✓The remortgage market is most competitive at 60%, 75%, and 80% LTV thresholds
Why timing matters so much in the UK
UK mortgages fix for an initial period (typically 2 or 5 years) after which they revert to the lender's Standard Variable Rate. SVRs are consistently higher than new fixed rates — often by 1.5–3%.
On a £250,000 balance, reverting to SVR vs refixing can cost an extra £500/month. Starting the remortgage process 3–6 months before the deal expires gives you time to compare the market and complete before SVR kicks in.
Most mortgage offers are valid for 3–6 months, meaning you can lock in a new rate today that doesn't complete until your current deal expires.
💡 Tip: Set a calendar reminder 5 months before your fixed rate expires. This gives you 2 months to research the best deal, then 3 months for application and completion.
Product transfer vs full remortgage
Product transfer (staying with your lender): Faster — often done online in minutes, no legal fees, no new credit check in most cases. Usually less competitive rate than the wider market.
Full remortgage (switching lender): Takes 4–8 weeks, involves legal fees (often covered by the new lender as an incentive), requires a new application and valuation. Usually access to the most competitive rates.
Compare both options. A mortgage broker can compare them simultaneously. For straightforward cases the product transfer rate is often within 0.1–0.2% of the best market rate — and the simplicity may be worth the small premium.
Using a mortgage broker vs going direct
UK mortgage brokers are typically paid by commission from the lender and have access to deals not available direct to consumers. A good whole-of-market broker will compare every deal, handle paperwork, liaise with solicitors, and know which lenders suit your income profile.
Going direct to lenders can occasionally find exclusive direct-only deals, but most competitive products are available through brokers. For most remortgages, a whole-of-market broker is the most efficient route and costs you nothing directly.
Early remortgaging: when to exit a fixed rate early
Sometimes remortgaging before your fixed term ends makes sense — particularly if rates have fallen significantly.
The calculation: ERC cost vs total savings from the new lower rate over the new fixed term.
Example: 18 months remaining on a fix. ERC: 2% of £200,000 = £4,000. New rate saves £300/month. Break-even on ERC: 13 months. Over remaining 18 months + new 5-year fix: net saving after ERC = £4,400.
In this case, paying the ERC makes sense. Model your numbers using the Remortgage Savings Calculator with the ERC amount in the closing costs field.
Frequently Asked Questions
Calculators mentioned in this guide
Disclaimer: Calculations are estimates for general guidance only and do not constitute regulated financial advice. Rates and costs vary by lender and property location. Stamp Duty Land Tax figures use England rates — Scotland (LBTT) and Wales (LTT) differ. Always consult an FCA-authorised mortgage adviser.