What is a remortgage?

A remortgage is when you switch your current mortgage to a new deal, typically with a different lender. People often remortgage to get a better interest rate, reduce their monthly payments, or release some equity from their home as a cash lump sum. It's all about finding a deal that works better for your current needs.

Many people check the latest offers from lenders when their current mortgage deal is about to end. Changes in circumstances including the value of your home could mean you’ll find a better deal by switching lenders.

The great news is, remortgaging can save you money and give you some extra flexibility. Whether you’re looking to lock in a lower rate or get a longer term, there are plenty of deals available to suit your circumstances.

Are you eligible for a remortgage?

Ready to remortgage? Let’s make sure you’re in the best position to grab the best deal. Here’s what lenders typically want to see:

Equity:

You’ll need some equity in your current home. Generally speaking, the more equity you have, the better the deal!

Income and affordability

Lenders want to ensure you can comfortably afford the repayments, so they'll take a good look at your income and outgoings.

Current mortgage:

Be ready to provide details of your current deal.

Credit score

Whilst there isn’t a specific credit score required for a mortgage, having a higher score can improve your chances of being approved.

Every lender is different, so it’s worth comparing options to find the one that works best for you.

One more thing… your home could be repossessed if you don’t keep up with repayments, so make sure you’re comfortable with what you can afford before taking the plunge.

Why might you decide to remortgage?

Remortgaging isn’t just about switching lenders, it’s about making your mortgage work for you. Whether your current deal is ending, you’re looking for a better rate, or you need to free up some cash, a remortgage could be a smart move. Here are some common reasons people choose to remortgage:

  • Your deal is ending: Fixed-rate mortgages often last two to five years. Once your deal expires, your lender will likely offer you a new fixed-rate deal - but you may get a better one by remortgaging with a different lender.

  • Your property value has gone up: If your home is worth more now, your loan-to-value (LTV) ratio may be lower. Having a lower LTV could gain you access to better mortgage rates.

  • You want a more competitive deal: If you’re on a tracker or variable-rate mortgage, your repayments will rise if interest rates go up. Locking in a new deal will give you more stability, though you’ll need to weigh this up against missing out on potential rate drops during your fixed term.

  • You’d like to pay off your mortgage sooner: Some lenders limit overpayments. Switching to a more flexible mortgage could help you clear your balance faster.

  • You need to release equity: Want to fund home improvements, cover big expenses, or access cash for another reason? A remortgage could let you tap into your home’s value. Or, if you’re 55+, you might wish to consider a lifetime mortgage.

  • You want to offset your savings: If you’ve built up savings, switching to an offset mortgage could reduce the interest you pay by linking your savings to your mortgage.

  • You want to consolidate debts: Moving your debts onto your mortgage could lower your monthly outgoings, but it’s important to weigh up the long-term costs.

Whatever your reason for remortgaging, it’s worth shopping around to find the best deal for your situation.

How much can I borrow when I remortgage?

How much you can borrow depends on your income, expenses, existing borrowing and the equity in your home. Lenders usually offer around four and a half times your annual income, though some providers may offer more than this. If you want to borrow more, say for home improvements, they’ll want to see that you can comfortably afford the repayments.

Ultimately, the more equity you have, the better your chances of getting a good deal. For example, if your home’s worth £300,000 and your mortgage is £240,000, you have 20% equity. Your loan-to-value in this example is 80%. As you pay more of your mortgage off over time, you’ll gradually achieve a lower loan-to-value (LTV) ratio, which typically means better deals.

It’s worth comparing deals to find the best one based on your income, equity, and goals.

Mortgage guides

Answering your questions about remortgaging

Page updated on 17th September 2025, Reviewed by Richard Groom