Remortgaging means replacing your current home loan with a new one, usually to get a better rate, free up equity, or move off an expensive standard variable rate. Done well, it can save you a meaningful amount each month. Done carelessly, fees can swallow the benefit.
Before you start
The strongest position comes from preparation. Check your current deal for early repayment charges, and know roughly how much equity you hold, since a lower loan-to-value ratio typically unlocks better rates.
Ten tips worth following:
- Start shopping two to three months before your current deal ends
- Compare the total cost, not just the headline interest rate
- Add up arrangement, valuation, and legal fees before deciding
- Check for early repayment charges on your existing loan
- Improve your credit file by paying down small balances first
- Decide between fixed and variable based on your risk comfort
- Don’t over-borrow simply because more equity is available
- Keep your loan term sensible; a longer term lowers payments but costs more overall
- Get a decision in principle to understand what lenders will offer
- Read whether incentives like cashback offset higher rates
Watch the small print
A rate that looks attractive can hide steep fees, and some deals tie you in for years. Run the numbers over the full deal period, not just month one. If you’re stretched, lengthening the term eases monthly pressure, but understand you’ll pay more interest across the life of the loan.
It often pays to speak with an independent broker who can see deals you can’t find alone, though always confirm how they’re paid.
The takeaway: remortgage on total cost and timing, not on the lowest advertised number.
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