Remortgaging Explained

Why People Do It and When It May Make Sense

Remortgaging is often talked about as something you do when interest rates fall or when your fixed deal ends. In reality, people remortgage for many different reasons, and it is not always about chasing the lowest rate.

For homeowners in 2026, understanding why people remortgage and when it may make sense can help you feel more in control of your options, rather than reacting under pressure.

What does remortgaging actually mean?

Remortgaging simply means switching your existing mortgage to a new deal. This can be with your current lender or with a different one. The property stays the same, but the terms of the mortgage change.

Some people remortgage at the end of a fixed or discounted period. Others do it earlier, depending on their circumstances. There is no single “right” time that applies to everyone.

Common reasons people remortgage

One of the most common reasons for remortgaging is the end of a fixed-rate deal. When a fixed period ends, many mortgages move onto the lender’s standard variable rate, which is often higher and less predictable. Reviewing options in advance can help homeowners avoid unexpected payment increases.

Another reason people remortgage is to release equity. This might be to fund home improvements, consolidate existing borrowing, or support other planned expenses. While this can make sense for some people, it also increases the amount borrowed and should always be considered carefully.

Changes in personal circumstances can also prompt a remortgage. This might include changes to income, household structure, or long-term plans. A mortgage that suited you five years ago may no longer fit your current situation.

Some homeowners remortgage to change the structure of their mortgage, such as moving from an interest-only arrangement to repayment, or shortening or extending the mortgage term to better align with future plans.

When might it be worth reviewing your mortgage?

Many people leave reviewing their mortgage until the last minute, but starting early often gives you more choice. Reviewing your position several months before a deal ends allows time to understand your options without pressure.

It can also be worth reviewing your mortgage if your property value has changed significantly or if you have reduced the balance you owe. This may affect your loan-to-value ratio, which plays a role in the range of mortgage products available.

That said, remortgaging is not always the right answer. Early repayment charges, legal fees and valuation costs can sometimes outweigh the benefits. This is why understanding the full picture matters more than focusing on rates alone.

Understanding the costs involved

Remortgaging can involve costs such as arrangement fees, valuation fees, legal fees and potential early repayment charges from your current lender. Some deals include incentives to help offset these costs, but they should still be factored into any decision.

Looking only at the headline interest rate without considering fees can give a misleading impression of value. Understanding the overall cost over time is key.

Affordability still matters

Even if you have been paying your mortgage comfortably for years, lenders will still assess affordability when you remortgage, especially if you are borrowing more or changing lenders.

Changes in income, outgoings or financial commitments can affect what is available. Being aware of this in advance can help avoid frustration or delays.

Taking a measured approach

Remortgaging does not have to be rushed or reactive. Taking time to understand why you might want to remortgage, what you hope to achieve, and what the implications are can help you make more confident decisions.

Reliable, impartial information is a useful starting point before making any commitments.

Please get in touch if you’d like to speak about your mortgage.

Barry, The Mortgage Network - Helping you start the year with a clear plan, confident decisions and a mortgage that works for you.

Your home may be repossessed if you do not keep up repayments on your mortgage.