Is Remortgaging a Good Idea in the UK? What You Need to Know

Remortgaging is something many UK homeowners do at least once during their mortgage term — and often for good reason. Whether you're approaching the end of a fixed-rate deal or looking to raise funds for renovations, debt consolidation or investments, remortgaging can offer financial flexibility and long-term savings.

But is remortgaging the right move for you?

At Friends Capital Ltd, we help homeowners across the UK understand when and why remortgaging might be a good idea — and how to do it the smart way. In this guide, we’ll explain the main reasons people remortgage, the benefits and risks, and the questions you should ask before proceeding.

What Is Remortgaging?

Remortgaging is the process of switching your existing mortgage to a new deal, either with your current lender or a new one. You might remortgage to:

  • Get a better interest rate
  • Reduce your monthly payments
  • Release equity from your home
  • Consolidate debts
  • Change your mortgage term or type

Most people remortgage at the end of a fixed-rate period to avoid moving onto the lender’s standard variable rate (SVR), which is often much higher.

When Is Remortgaging a Good Idea?

1. Your Fixed or Introductory Rate Is Ending

Once your fixed term ends, your lender will automatically switch you to their SVR. This rate is typically higher, and remortgaging can help you avoid a sudden increase in your monthly repayments.

2. You Want a Better Interest Rate

If rates have dropped or your financial situation has improved since you took out your mortgage, you may be eligible for a much lower rate. Even a small reduction can lead to significant savings over time.

3. You Want to Release Equity

If your home has increased in value, you may be able to remortgage and borrow more to fund home improvements, invest in property, or cover large expenses like education or business costs.

4. You’re Consolidating Debt

Rolling existing debts into your mortgage can simplify your finances and reduce interest payments — but it must be approached carefully, as you’re securing those debts against your home.

5. You Want to Change Mortgage Type or Term

Whether you’re switching from a variable to a fixed rate, or shortening/lengthening your mortgage term, remortgaging allows you to tailor your loan to your evolving needs.

When Might Remortgaging Not Be the Right Move?

Remortgaging isn’t always the best solution. You should consider alternatives if:

  • You’re still within a fixed-term deal and would face high early repayment charges (ERCs)
  • Your property’s value has dropped, affecting your loan-to-value (LTV) ratio
  • Your credit score has deteriorated since your last application
  • The savings don’t outweigh the cost of fees

That’s why it's important to run the numbers with a mortgage adviser before making any decisions.

What Are the Costs of Remortgaging?

While remortgaging can save money, it’s important to account for the costs involved:

  • Early repayment charges (ERCs)
  • Exit or admin fees
  • Valuation and legal fees (some lenders offer free or discounted services)
  • Arrangement fees for the new mortgage

A mortgage adviser can help you calculate the true cost and compare this against potential savings.

What Documents Will I Need to Remortgage?

Typically, you’ll need to provide:

  • Proof of ID and address
  • Proof of income (payslips or accounts if self-employed)
  • Bank statements
  • Details of your existing mortgage
  • Property details and value (valuation may be required)

Frequently Asked Questions About Remortgaging (UK)

How often can I remortgage?

You can remortgage as often as you like, but doing so too frequently may trigger early repayment charges or unnecessary fees.

Can I remortgage with bad credit?

Yes, though your options may be more limited. Specialist lenders may still offer deals, especially if you have sufficient equity.

How long does remortgaging take?

The process usually takes 4–8 weeks, but it can be quicker with the right documentation and lender.

Can I remortgage to release equity?

Yes. Many UK homeowners remortgage to access funds for renovations, debt repayment, or investments.

Speak to a Mortgage Adviser Today

Remortgaging can be a smart way to reduce your payments, unlock value in your home, or take control of your financial future — but it’s not a decision to take lightly. The key is getting expert advice tailored to your unique situation.

At Friends Capital Ltd, our mortgage advisers will:

  • Review your current deal and options
  • Compare the latest mortgage rates across the market
  • Help you understand the costs and potential savings
  • Guide you through the remortgage process from start to finish

Get in touch with one of our expert mortgage advisers today to find out whether remortgaging is a good idea for you — and which options will help you achieve your financial goals.