Remortgaging: what it is and how a deal ends

Remortgaging simply means moving your existing mortgage onto a new deal — usually with a new rate, sometimes with a new lender. Most people do it when a fixed deal is ending, because that's when the rate they've been enjoying is about to change.

What happens when a fix ends

When a fixed deal ends, you don't have to do anything — but if you don't, you usually roll onto the lender's Standard Variable Rate (SVR), which is typically higher than the deals on offer. Lining up a new deal ahead of that point is what remortgaging is about. Offers can often be secured around six months before the fix ends.

Loan-to-value (LTV)

LTV is your mortgage balance as a percentage of your property's value. It matters because lenders price by band: a borrower at 70% LTV is usually offered lower rates than one at 90%. Paying down the balance or a rise in your property's value can nudge you into a lower band — which can open up different rates.

Early-repayment charges (ERC)

If you leave a fixed deal before it ends, the lender usually charges an ERC — often a percentage of the balance that tapers down each year. It's why leaving a fix early isn't automatically cheaper even when rates have fallen: the ERC and any fees have to be weighed against the saving. Your own mortgage terms set the exact figure.

The honest bit

Comparing sample rates at your LTV against what you pay now is useful for getting your bearings — but the lowest rate isn't always the lowest cost once fees count, and eligibility isn't a given. A mortgage is regulated, so for a recommendation on what's actually right for you, a broker or the lender itself is the proper route. This is general information, not advice.