Remortgaging, Explained

Why Remortgage?

• Your current deal is ending: Many buy-to-let mortgages have fixed terms (e.g. 2 or 5 years). When it ends, you’ll move onto a higher “standard variable rate” unless you remortgage.
• You want a better rate: Interest rates may have dropped, or your property value may have increased — meaning you now qualify for a better deal.
• You want to release equity: If your property has risen in value, remortgaging can let you borrow more, freeing up cash for renovations or another investment.
• You want more flexibility: A new mortgage could offer features like interest-only terms, overpayments, or fewer early repayment charges.

When Can You Remortgage?

You can usually apply three to six months before your current deal ends. If you leave early, you might have to pay:

• Early Repayment Charges (ERCs)
• Exit or admin fees

Always check your current mortgage’s terms before switching.

What’s the Process?

Remortgaging is quicker than buying a property but still involves:

1. Reviewing your goals – e.g. lower monthly payments, cash release
2. Comparing deals – with your lender, a broker, or comparison site
3. Credit and affordability checks – especially if borrowing more
4. Property valuation – usually required by the new lender
5. Legal work – simpler than a full purchase, often handled by the lender’s solicitor (sometimes free)

Costs to Watch For

• Product/arrangement fees on new mortgage deals
• Valuation and legal fees (often included or discounted)
• Broker fees if you use an adviser
• ERCs from your current deal, if leaving early

Tip: Even with fees, switching to a better deal can save you thousands over time — always do the maths before sticking with your lender’s default rate.