To remortgage is to replace your existing home loan with a new deal. Yes, you can remortgage if property prices fall, but declining home values increase your loan-to-value (LTV) ratio, which may limit your rate options or require specialist lenders.
Switching is the right move when savings beat the fees. If your fixed deal is ending and there is no big exit penalty, a new deal usually pays off. However, if you have a tiny balance left or barely any equity, sitting tight is often smarter.
About 1.8 million fixed deals run out across the UK this year, says UK Finance. If yours is one of them, here’s the full picture.
- Bank Rate sat at 3.75% after the Bank of England’s 30 July 2026 meeting. Next call: 17 September.
- Moneyfacts had the average two-year fix at 5.61% in August 2026. The average SVR? 7.13%.
- Fees usually land between £300 and £1,500 before any early repayment charge.
- You can line up a deal six months early, and offers usually stay valid for six months.
What Remortgaging Really Means
You move your loan to a different lender and stay in the same house. HSBC UK explains it as the replacement of a new mortgage with the old one.
Sticking with your current lender on a fresh rate is not a remortgage. That’s a product transfer, and as solicitors at JMW explain, it often skips the solicitor and the affordability test. Handy if money’s tight.
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Why UK Households Switch
Your mortgage might run 20 or 25 years, but the deal on it lasts two to five. A few lenders do ten. When it ends, you slide onto the standard variable rate, which the lender changes when it likes, often with no nod to the Bank Rate.
Experian lists the usual reasons people move: the house is worth more, so the LTV looks better, you want a fix before rates climb, you want bigger payments over a shorter term or small ones over a longer term because life got expensive.
Some need cash for an extension, a wedding or school fees. Others want flexibility, like overpaying when there’s spare money, or an offset deal where savings cut the interest and can still be pulled back.
The Sums: What Switching Can Save
MoneyHelper works it through on a 20-year mortgage worth £200,000, with interest charged monthly and the rate staying put.
| Your mortgage deal | Stay on current deal | Option 1 | Option 2 |
| Interest rate | 5% | 4.5% | 4.4% |
| Arrangement or product fees (added to mortgage) | 0 | 0 | £2,000 |
| Total cost over 20-year term | £316,876 | £303,572 | £304,102 |
| Total interest charged | £116,876 | £103,572 | £102,102 |
| Total monthly payment | £1,320 | £1,256 | £1,267 |
Source: Calculations based on standard UK mortgage amortisation models and official MoneyHelper/FCA repayment guidelines.
In this example, you’d pay almost £15,000 more in interest charges on your current deal. Option 1 is £64 cheaper every month and saves £13,304 in interest. Option 2 is £53 cheaper every month and saves £14,774 in interest. Odd, isn’t it? Option 2 has the lower rate, but that £2,000 fee makes it dearer month to month. Never shop just on the rate alone.
Costs You Must Add Up First
Booking or completion fees, conveyancing, the valuation, broker fees, plus exit fees or an early repayment charge from your old lender. Unbiased reckons the average is between £300 and £1,500 once you add in valuation, legal and exit costs, with ERCs excluded.
Read the small print. A two-year fix can still charge you in year three, which quietly parks you on the SVR for months. Some lenders throw in free legal services or cashback, so ask.
How The Remortgage Process Works
Ring your lender first and ask what they’d offer. Then look elsewhere, or use a broker who sees the whole market plus deals you can’t find yourself. Ask for a redemption statement too: the exact figure needed to clear the loan and what you’ll be borrowing.
Next, a decision in principle. Soft credit check, no dent in your score, no commitment. Then the real application and a hard search. Get your papers ready: three months of bank statements and payslips (three years of accounts if self-employed), ID, utility bills, credit card statements, three years of addresses, your P60 and proof of bonuses. Lenders also check how you’d cope if rates jumped or one income vanished.
A valuation follows, sometimes done online or from the pavement. Think it’s too low? Push back with sale prices of similar homes nearby and the improvements you’ve made.
Then the offer lands and a solicitor or licensed conveyancer takes over, drawing down the money, clearing the old mortgage and registering it with the Land Registry. Four to eight weeks is normal.
Can You Remortgage Your Home If Property Prices Fall?
Yes, though your options shrink. If prices dip but your debt stays the same, your LTV shoots up. Divide the balance by the value and multiply by 100: you owe £250,000 on a £300,000 house, and that’s 83%.
Lenders save their best rates for low LTVs; negative equity, where the debt beats the value, is the tough one. Most high street lenders want at least 5% equity, though specialists exist and a broker can find them.
What helps? Overpayments, a lump sum off the balance, cheap cosmetic improvements, or waiting for buyers to return. Stretching the term lowers payments too, but costs more interest overall and builds equity slowly. Short-term fix only.
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When Staying Put Makes More Sense
Owe under £50,000, and fees can swallow the savings. Same if a big redemption penalty applies, your income has dropped, or you’re at 90% LTV. Moving soon? Porting may beat locking into new penalties.
If you have arrears or missed payments in the past 12 months, you’ll struggle even under the FCA rules meant to help mortgage prisoners. Rejected once? Don’t spray applications about. Check your credit file with one of the three agencies, fix errors, stay out of your overdraft and avoid new credit.
Final Verdict
Are you coming off a cheap fix in 2026? Switching usually beats drifting onto a 7% SVR. Set a reminder six months before your deal ends, do the maths, and get advice. Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
FAQs
Q1. Will I Pay A Penalty If I Remortgage Early?
Most fixed deals charge an ERC if you leave early, and it can hurt. Time your switch for when the deal is ending.
Q2. How Long Does Remortgaging Take In The UK?
Four to eight weeks with a new lender. About a month if you stay with your current lender and switch products.
Q3. Does Remortgaging Hurt My Credit Score?
The hard search causes a small dip that soon fades. Several applications in a short spell do more harm.
Q4. Can I Borrow More When I Remortgage?
Yes, that’s releasing equity. You borrow more than the balance, but the lender must be happy you can afford it.
Q5. Do I Need A Solicitor To Remortgage?
Only if you’re switching lenders, a product transfer usually means no legal work.
Q6. Should I Remortgage To Clear Other Debts?
Careful here. Mortgage rates look cheap next to credit cards, but dragging that debt over 20 years can cost more.
Sources & References
- HSBC UK. (2026). What is remortgaging?
- Money Helper. (2026). Remortgaging to cut costs: Worked example.
- Experian. (2026). Types of remortgage and reasons for switching.
- Unbiased. (2026). How to remortgage in the UK: A step‑by‑step guide.
Disclaimer: This article is provided for informational and educational purposes only and does not constitute financial, mortgage, or legal advice, nor is it intended for promotional purposes. Mortgage terms, rates, and criteria vary based on individual circumstances and market conditions. Readers should independently verify all facts and seek professional advice from a qualified financial advisor or mortgage specialist before making any decisions.
