Finance glossary
Remortgage
Also known as: Remortgaging
In simple terms
Remortgaging means switching your existing mortgage to a new deal — either with your current lender or a new one — usually to get a better rate or to borrow more against your home.
On this page
What does remortgage mean?
A remortgage is when you take out a new mortgage on a property you already own, to replace your existing one. Most people remortgage when their current deal period ends, to avoid slipping onto the lender’s higher standard variable rate.
You can remortgage with your existing lender (often called a “product transfer”) or move the whole mortgage to a new lender.
How remortgaging works
Switching to a new lender is like applying for a fresh mortgage: they check your income, outgoings and credit history, and revalue the property. Because your home has usually gone up in value and the balance has fallen, your loan-to-value may be lower, unlocking better rates.
There can be fees — an arrangement fee on the new deal, and possibly an early repayment charge if you leave your current deal before it ends — so it is worth checking the total cost, not just the headline rate.
How could this affect me?
Remortgaging at the right time can save a lot, because standard variable rates are typically far higher than a new fixed or tracker deal. Many people start looking three to six months before their current deal ends.
You can also remortgage to release equity — borrowing more against the value of your home — but that increases your debt and your monthly payments, so it should be a considered decision.
Things to watch out for
- Leaving your current deal early can trigger an early repayment charge — check this before you switch.
- Factor in arrangement, valuation and legal fees; the cheapest rate is not always the cheapest overall deal.
- Borrowing more when you remortgage increases your debt and can stretch the term — weigh it carefully.
Know your rights
- Remortgages are regulated by the FCA under its MCOB rules, so the new lender must assess affordability and treat you fairly.
- You can complain and escalate to the Financial Ombudsman Service if a lender treats you unfairly.
General information, not personal advice
Consumer Credit is an independent information service. We do not provide regulated financial advice or sell financial products. For advice on your own situation, speak to an appropriately authorised firm or a free service such as MoneyHelper. About Consumer Credit.
Sources
We checked this page against these official and authoritative sources.
- MoneyHelper, Remortgaging — a step-by-step guide (opens in a new tab). Accessed 22 Aug 2026.