Guide · 6 min read
Remortgaging, explained
About 1.8 million UK fixed mortgages mature in 2026 — the biggest remortgage wave on record. Here's how to think about it without panic or procrastination.
Why remortgage at all
At the end of your fix or tracker deal you roll onto your lender's Standard Variable Rate (SVR). UK SVRs in 2026 typically sit around 7-9% — well above any remortgage or product transfer rate you can get.
On a £250,000 repayment mortgage, the gap between a 5% remortgage and an 8% SVR is roughly £400 per month. Staying on SVR is almost never the right choice.
Product transfer vs full remortgage
| Product transfer | Full remortgage | |
|---|---|---|
| Who you borrow from | Current lender | Any lender |
| Solicitor needed | No | Usually yes (often free on remortgage products) |
| Affordability reassessed | Usually no | Yes |
| Valuation | Usually desktop | Physical or AVM |
| Time to complete | Minutes to days | 4-8 weeks |
| Rate competitiveness | Lender-only range | Whole market |
| Can you release equity? | Sometimes | Yes (subject to affordability) |
The honest answer: compare both. Get your current lender's product-transfer quote, then get a broker to find the best whole-of-market remortgage. If the broker quote is within 0.1% of the product transfer, the product transfer's simplicity usually wins. Above 0.1%, the remortgage often pays.
The 6-month rule
Most remortgage offers are valid for 6 months. You can apply 6 months before your current deal ends and your new deal doesn't complete until your ERC period is over. If rates fall before you switch, you can usually re-apply at the lower rate. If they rise, you're locked in.
Starting to shop 3 months before is too late. Starting 6 months before is just right.
Early Repayment Charges (ERCs)
Leaving a fixed or tracker deal early typically triggers an ERC of 1-5% of the outstanding balance, depending on how long is left. A typical schedule on a 5-year fix:
- Year 1: 5%
- Year 2: 4%
- Year 3: 3%
- Year 4: 2%
- Year 5: 1%
- After year 5: 0%
On a £200,000 loan that's £4,000 in Year 3 — enough to offset the benefit of any rate cut you might chase. Always calculate whether the rate saving covers the ERC before triggering an early move.
Releasing equity
Your house has probably gone up in value since you bought. That means your loan-to-value is probably lower than it was, and you may qualify for a better rate band. You can also extract some of that equity on remortgage — useful for home improvements, consolidating debt, or gifting a deposit to a child buying their own first home.
Equity release on remortgage is subject to full affordability checks. It's not automatic — you're borrowing more, which means the lender reassesses as if it's a new application.
In a rising-rate environment
When rates are rising (or the market fears they are), lock in early. 5-year fixes usually outperform 2-year fixes in rising-rate environments because you avoid another remortgage at higher rates in 2-3 years' time.
In a falling-rate environment
When rates are falling, 2-year fixes let you come off sooner and remortgage onto lower rates. Trackers are also attractive — the rate moves down with every MPC cut.
The year 2026 context
Around 1.8 million fixed-rate mortgages reach the end of their deal during 2026 (UK Finance forecast) — the largest single-year cohort on record. Most of these were taken out in 2021 at 1-3% rates and will revert to 5-6% on remortgage. That's a structural shift in household cashflow for a significant portion of UK homeowners.
If you're in that cohort, start early. Plan for the higher payment from now so it doesn't come as a shock. The repayment calculator will show you exactly what the new monthly payment looks like at your new LTV and today's rate.
Frequently asked
When should I start shopping?
6 months before your current deal ends. Rate offers are usually honoured for 6 months, so you can lock in a new rate now without actually switching until your ERC period ends. If rates fall before you switch, you can often re-apply at the lower rate with your chosen lender. If they rise, you're protected.
Product transfer or full remortgage?
Product transfer is faster (no new solicitor, often no new underwriting, often done online in 15 minutes) but you're limited to your current lender's range. Full remortgage is more work but lets you access the whole market. On a decent-sized loan, 0.2% rate difference is £500-£1,000/year — usually worth the effort to compare.
Can I switch if my income has dropped?
Product transfers usually don't reassess affordability — your current lender keeps you on their books and offers you one of their new rates. Full remortgages do reassess, and a drop in income can block them. That's a reason to favour product transfers when you're on shakier ground.