How Does Remortgaging Work?

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Many homeowners consider remortgaging when their current deal ends. But it’s not always clear how the process works or whether it’s the right move. In this guide, we break it down step by step.

We’ll cover:

What remortgaging means and who can do it
How long the process typically takes
Whether remortgaging is right for you
Step-by-step instructions to remortgage smoothly
How to work out what you can borrow
Key considerations for remortgaging later in life

What is remortgaging?

Remortgaging means switching to a new lender when your current mortgage deal ends. You stay in the same home, but instead of renewing with your current lender, you look for a better deal and move your mortgage to someone else.

Who is eligible to remortgage?

To remortgage, you’ll need to meet a few key requirements:

Homeownership. You must own your home to be able to remortgage.
Affordability. You must show the lender you can afford the new mortgage. They’ll ask for proof of your income, spending, and any debts. If you’re retired, you can still remortgage by showing your pension income instead of a salary.
Good credit score. Lenders check your credit history to see if you manage money well. A higher score makes it easier to get approved.
Equity. You need to own enough of your home to meet the lender’s Loan-to-Value (LTV) rules.

You can remortgage at any time, but leaving a deal early might mean paying an Early Repayment Charge (ERC). Always check your mortgage terms before switching.

How long does remortgaging take?

Remortgaging usually takes 4 to 8 weeks after you apply. To be safe, give yourself at least 12 weeks in total. This includes time to find a new deal and complete the process. You might want to start looking 6 months before your current deal ends for a better chance at the best deals.

Is remortgaging a good idea?

Remortgaging can be a smart move, but it depends on your personal situation. In some cases, it can save you money or give you more control over your finances. In others, it might be better to wait.

Benefits of remortgaging

Here are some reasons why remortgaging could work for you:

Lower monthly payments. When your fixed-rate deal ends, your lender may move you to a higher rate. Remortgaging can help you find a better deal and reduce your payments.
More financial stability. Switching to a new fixed-rate deal can protect you from future interest rate rises and give you peace of mind.
Access to equity. If your home has gone up in value, remortgaging could let you release some of that equity.
Flexible terms. You can change the length of your mortgage to better suit your current financial needs.

Reasons why you might want to wait to remortgage

Sometimes, it’s better to hold off on remortgaging. Here’s why:

Early Repayment Charges (ERCs). These fees can be high. Make sure remortgaging will still save you money after paying any ERCs.
Low equity. If you don’t own much of your home yet, it might be hard to get a better rate.
Good current deal. You might already have a strong mortgage rate that’s hard to beat.
Changed finances. If your financial situation has worsened, like losing your job, you may find it harder to get approved for a new mortgage.

A row of houses in London — Image credit: Shutterstock

A step-by-step guide to remortgaging

Want to know how remortgaging works? Here’s a simple breakdown of the key steps:

1. Review your current mortgage deal

Start by reviewing your current mortgage deal. Know your interest rate so you can compare it with other offers. It’s also a good time to check your credit score and finances.

This helps you see if you’re in a good position to apply.

2. Compare mortgage options

Once you’re ready, start looking at other mortgage options. Use a remortgage calculator to see if switching could save you money.

Don’t forget to ask your current lender what they can offer – you might be able to switch to a better deal without changing lenders.

3. Get an agreement in principle

When you find a deal you like, apply for an agreement in principle. This shows how much you could borrow. It’s not a final offer, but it helps you move forward. It is important to note, however, that not all lenders provide the maximum borrowing figure within an Agreement in Principle; some will only confirm whether the specific loan amount requested is available.

4. Submit your application

If you’re happy with the deal, submit your full application. The lender will run a credit check and arrange a property valuation before making a final decision.

5. Handle the legal side

Even though you’re not buying a new home, there’s still legal work to do. A solicitor or conveyancer will help with the paperwork to transfer your mortgage. Some lenders provide one, but you might need to choose your own.

Working out how much you can borrow

Understanding how much you could borrow from a new lender is vital before you remortgage. It depends on a few factors:

Income and outgoings. Lenders will assess your salary, pension or other income, along with your regular spending and debts.
Loan-to-Value (LTV). This is the percentage of your home’s value you want to borrow. A lower LTV usually means better rates.
Credit history. A strong credit score can help you borrow more at a lower interest rate.
Property value. If your home has increased in value, you may be able to borrow more against it.

You can use online remortgage calculators to get an idea. A mortgage adviser can also give you a more accurate figure based on your full financial picture.

Considerations for remortgaging in later life

Remortgaging in later life can offer financial flexibility, but there are a few extra things to think about:

Retirement income. Lenders will look at your pension, and other income sources to check affordability.
Mortgage term. You may need a shorter mortgage term, which could mean higher monthly payments.
Specialist products. Some lenders offer retirement interest-only mortgages or lifetime mortgages designed for older borrowers.
Equity release. If you’re looking to unlock cash from your home, equity release might be an alternative to remortgaging – but it comes with different risks and costs.

It’s a good idea to speak to a mortgage adviser who understands later-life lending. They can help you find the right option for your needs and make sure it fits with your long-term plans.

Important

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up with payments on your mortgage. Saga Money may receive payment from Tembo if you get a mortgage offer via the Saga Mortgages service. This will not affect the amount you pay for the service.

Saga is a registered trading name of Saga Personal Finance Limited, which is registered in England and Wales (company number 3023493). Registered office 3 Pancras Square, London, N1C 4AG. Saga Personal Finance Limited is authorised and regulated by the Financial Conduct Authority under the registration number 178922.

Tembo Money Limited (12631312) is a company registered in England and Wales with its registered office at 18 Crucifix Lane, London, SE1 3JW. Tembo is authorised and regulated by the Financial Conduct Authority under the registration number 952652. Tembo Money was awarded Best Mortgage Broker at the British bank awards in 2022, 2023, 2024 and 2025.