UK Remortgage Guide 2025: Best Rates, When to Remortgage & How to Save

Introduction

If your fixed-rate mortgage is ending soon, you’re not alone. In 2025, hundreds of thousands of UK homeowners are rolling off cheap 2% deals into a market where rates are closer to 4% or more.

The question is: should you remortgage now, stick with your lender, or wait for rates to fall?

This guide explains everything you need to know about remortgaging in the UK in 2025 — including rates, timing, calculators, and money-saving strategies.

What Is Remortgaging?

Remortgaging means switching your mortgage to a new deal, either with your current lender or a new one.

Reasons to remortgage:

• Your fixed-rate period is ending.
• You want to get a better interest rate.
• You want to borrow more money (e.g., for home improvements).
• You want to reduce monthly repayments by extending the term.

What Are the Current Remortgage Rates UK (2025)?

As of September 2025:

• 2-Year Fixed Remortgage: ~3.75%–4.20%
• 5-Year Fixed Remortgage: ~3.89%–4.25%
• Tracker Remortgage: ~4.5%–5.5%
• Standard Variable Rate (SVR): ~6%–7%

If you do nothing, you’ll usually fall onto your lender’s SVR — much higher than fixed deals.

Remortgage Example

Mortgage balance: £200,000
Remaining term: 20 years
• At 2% (old fixed deal) → £1,012/month
• At 4% (new deal) → £1,212/month
• At 6.5% (SVR) → £1,491/month

Remortgaging at the right time can save you £100s per month.

When Should You Remortgage?

• 3–6 months before your deal ends: most lenders let you lock in a new rate.
• If you’re already on an SVR → remortgage ASAP to avoid high payments.
• If you plan to move house soon, consider a portable mortgage.

Remortgage Options

1. Switch with your current lender (Product Transfer)
   • Easiest process, no legal work.
   • Sometimes not the cheapest.
2. Remortgage to a new lender
   • More paperwork, but can access better rates.
   • May involve arrangement and legal fees.
3. Release equity
   • Borrow more money against your home.
   • Popular for home improvements or debt consolidation.

Fixed vs Tracker Remortgage in 2025

Option Best For Risk
2-Year Fixed Short-term certainty, hoping rates fall later Higher payments if rates stay flat
5-Year Fixed Long-term stability & budgeting Locked in if rates fall
Tracker Flexibility, possible savings if BoE cuts rates Risk of higher payments if rates rise

In 2025, many homeowners choose 5-year fixed for peace of mind.

How to Get the Best Remortgage Deal

1. Check your credit score – higher score = better rates.
2. Reduce your Loan-to-Value (LTV) – overpay before remortgaging if possible.
3. Shop around – use a broker for access to exclusive deals.
4. Watch the fees – some low-rate deals come with £999+ arrangement fees.
5. Lock in early – many lenders allow you to secure a rate up to 6 months in advance.

Remortgage Costs to Budget For

• Arrangement Fees: £0–£1,500 (can add to loan).
• Valuation Fees: often free with remortgage packages.
• Legal Fees: £0–£500 (many lenders cover this).
• Early Repayment Charges (ERC): check if you’re leaving your deal early.

Will Remortgage Rates Fall in 2026?

• The Bank of England base rate is 4% (2025).
• If inflation continues to fall, rate cuts are possible in 2026.
• Fixed rates may drop slightly to ~3.25%–3.50%.
• However, experts don’t expect rates to return to 2020 lows (<2%).

For most borrowers, locking in stability now is safer than gambling on big cuts.

Remortgage FAQs

1. What is remortgaging?
   Switching your mortgage to a new deal with the same or a new lender.
2. When should I remortgage?
   3–6 months before your current deal ends.
3. What happens if I don’t remortgage?
   You’ll move onto your lender’s SVR, usually 6–7%.
4. Can I remortgage early?
   Yes, but you may pay Early Repayment Charges (ERCs).
5. Can I remortgage with bad credit?
   Yes, but at higher rates and fewer options.
6. Can I release equity when I remortgage?
   Yes — you can borrow extra against your home’s value.
7. Should I fix for 2 or 5 years in 2025?
   • 2 years: cheaper short-term, flexible.
   • 5 years: stability and protection against rate rises.

Conclusion

In 2025, remortgaging is essential for UK homeowners facing the end of low fixed-rate deals. With SVRs at 6–7% but fixed deals closer to 4%, the difference in monthly repayments is huge.

The key is to act early, compare deals, and lock in stability where possible. While 2026 may bring modest rate cuts, borrowers shouldn’t risk being stuck on high SVRs.

For most homeowners, a 5-year fixed remortgage offers peace of mind and protects against uncertainty.

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