Should you remortgage or product-transfer?
Where a link is marked * or labelled Ad, it is a partner advertisement: we receive commission at no extra cost to you. Links without a * or Ad label earn us nothing. How we make money.
Quick answer: Start six months before your fix ends: lock a product transfer with your current lender, and in parallel get a new-lender quote. Pick the cheaper complete cost, not the headline rate. Doing nothing rolls you onto the lender's standard variable rate — typically 2–4 percentage points dearer than new-business deals.
Remortgaging means moving to a new mortgage deal — either with your existing lender (a product transfer) or with a different one. Most fixed-rate deals end after two or five years and roll onto the lender's standard variable rate. Starting around six months before expiry lets you lock a rate while you are still on the cheap one, and switch again if the market falls before completion. The expensive mistake is silence, not picking the 'wrong' of two sensible deals.
Skip this if: Skip a new long fix if you will sell or redeem in a few months, or if an early repayment charge on the current deal wipes the saving. This is not a mortgage offer and not advice — compare both routes, and use a broker or go direct only after you have run the numbers on your balance and remaining term.
Last reviewed:
Read the full mortgages & first homes guide →Quick answer: Compare mortgage deals →Primary source: www.gov.uk/buying-a-home/preparing-to-buy
When should you start a remortgage?
Six months before the current deal ends is the usual window. Most lenders let you apply that far ahead, and most rate offers last three to six months — so you can lock early and still move to a cheaper product if rates fall before completion.
If the deal ends with no action, you revert to SVR. That is almost always more expensive than a new fix or tracker on the same balance. Put the end date in the calendar when you take the product, not when the first expensive statement arrives.
Should you product-transfer or switch lender?
A product transfer is a new rate from your existing lender. It is usually the fastest option, often with no product fee, no new affordability check and no solicitor — as long as you are not raising extra capital.
Switching lender can unlock a slightly cheaper rate, but it is a full application: credit check, valuation and conveyancing. Many lenders pay valuation and legals on remortgage products. A transfer that saves £40 a month often beats a new-lender deal that saves £55 a month but takes eight weeks of paperwork you may not finish before SVR starts.
| If this is you | Usually do this | Skip this if |
|---|---|---|
| Income or credit has got messier since you last applied | Product transfer — avoid a full affordability re-underwrite | You need to raise extra capital the current lender will not allow |
| Your LTV has dropped a band (overpayments or house-price rise) | Get a whole-of-market quote — a new lender may price the new band | The ERC on the current deal still dwarfs any saving |
| You need the switch done in under two weeks | Product transfer (often 1–2 weeks) | You assume a new-lender remortgage will complete in the same window |
What fees should you add before you pick a 'cheaper' rate?
Product fees (often around £999) can usually be added to the loan — then they accrue interest, so paying them upfront is normally cheaper if you have the cash. Compare the monthly payment with and without the fee added.
Watch the early repayment charge on the deal you are leaving. ERCs typically taper from about 5% in year one to 1% in year five. Switching a month too early can wipe years of rate saving. A 'free' deal that dumps you on SVR after a short term is not free.
How much does rolling onto SVR actually cost?
Illustration only — not your quote. A borrower with £200,000 outstanding on a 25-year repayment mortgage rolling off a 4.0% fix onto an SVR of 7.5% sees the monthly payment jump from roughly £1,056 to £1,478: about £422 extra a month, or just over £5,000 a year.
Moving to a 4.5% five-year fix instead would be about £1,112 a month — saving £366 a month versus that SVR, or more than £21,000 across five years if the SVR stayed there. Your lender's SVR and your remaining term will differ; run the same comparison in the mortgage repayment calculator with your figures.
When is it cheaper to stay on SVR for a short spell?
If you are mid-sale and expect to redeem in two or three months, a short spell on SVR can beat a new deal that carries an early repayment charge.
If you are about to repay in full (inheritance, downsizing), a tracker or SVR with no ERC is usually cleaner than a new fix. Porting an existing fix to a new house is possible with some lenders, but they re-underwrite the new loan — it is not a guarantee you can take the old rate with you.
Common questions
Do I need a solicitor to remortgage?
Yes if you are switching lender — but most remortgage products include 'free legals' as part of the deal. A product transfer with your existing lender does not need a solicitor.
Will I need to prove my income again?
Usually yes if you switch lender. A product transfer with your existing lender typically does not require a fresh affordability assessment as long as you are not increasing the loan amount.
Can I overpay before remortgaging to get a better rate?
Yes, and it's often a smart move. Bringing your loan-to-value below the next price band can drop the rate by 0.20–0.60%, often saving more over the next fixed period than the lump sum you paid in.
How long does a remortgage take?
Product transfers with the existing lender are usually completed within 1–2 weeks. Switching to a new lender typically takes 4–8 weeks from application to completion — start at least 4 months before your current deal ends to be safe.
Can I borrow more when I remortgage?
Yes — known as 'capital raising'. The lender will re-assess affordability and may want to know what the extra borrowing is for. Common reasons include home improvements, debt consolidation or a deposit to help a family member buy a property.