Hundreds of thousands of UK homeowners will see their fixed-rate deals expire in 2026. For those who miss the window and roll onto an SVR at 7.15-7.45%, the monthly cost can be hundreds of pounds higher than a competitive fixed deal. With the best two-year fixes now at 3.55% and five-year fixes at 3.75% (March 2026), the case for acting has never been stronger. Here is exactly how to approach it.
What is remortgaging?
Remortgaging means moving your mortgage to a new deal — either with your existing lender (a product transfer) or with a different lender entirely (a full remortgage). The goal is always the same: move from an uncompetitive rate to a better one. The difference between the two routes matters more than most people realise.
When should you start?
Start reviewing your options three to six months before your current deal expires. Most lenders allow you to lock in a new rate up to six months in advance. If rates fall further before your new deal starts, you can usually switch to the better rate from the same lender without penalty.
The cost of missing this window: on a £250,000 mortgage, the difference between a 3.75% five-year fix and an average SVR of 7.3% is approximately £900 per month. One missed month on the SVR costs more than any amount of preparation.
Product transfer vs full remortgage — which is better?
Product transfer (staying with your lender): No legal fees, no new valuation in most cases, no full credit check for most borrowers, and typically completed within 24-48 hours. Fast and simple.
Full remortgage (switching lenders): Opens up the entire market. Requires a new mortgage application, a valuation (usually free), and legal work (usually free via the new lender). Takes 4-8 weeks but can access significantly better rates.
The assumption that your existing lender always offers the best product transfer rate is consistently wrong. The best rates in the market right now (Yorkshire Building Society at 3.55% for two-year, First Direct at 3.75% for five-year) are not available to everyone on a product transfer with their current lender. A whole-of-market adviser compares both options and tells you where the best outcome actually is.
The FCA simplified switching rules introduced in July 2025 have also made it faster and easier to remortgage — with streamlined affordability checks for like-for-like applications.
What to check on your current mortgage
- Your current rate and when it expires. Check your original mortgage offer or call your lender.
- Your outstanding balance. Available from your lender online account or most recent statement.
- Early repayment charges (ERCs). If your fixed term has not expired, switching early may trigger ERCs of 1-5% of the outstanding balance. Sometimes switching still saves money — it requires a calculation.
- Your current property value — and your LTV. UK average house prices crossed £300,000 for the first time in January 2026. If your property has risen in value since you bought, you may have moved into a lower LTV band — significantly improving the rates available to you. A property bought at £250,000 with a £200,000 mortgage that is now worth £310,000 has moved from 80% to around 64% LTV.
Best rates available right now — March 2026
- Best 2-year fix at 60% LTV: 3.55% — Yorkshire Building Society
- Best 2-year fix at 75% LTV: 3.61% — Yorkshire Building Society
- Best 5-year fix at 60% LTV: 3.75% — First Direct
- Best 5-year fix at 75% LTV: 3.84% — First Direct
- Best 2-year fix at 85% LTV: from 3.92% — Santander (first time sub-4% at this tier)
- Average SVR: 7.15-7.45%
Should you overpay before remortgaging?
If you have savings approaching a remortgage, overpaying to improve your LTV can unlock a better rate tier — and save thousands over the new term. Check your annual overpayment limit first: most fixed-rate mortgages allow 10% of the outstanding balance per year without ERCs. Even a small LTV improvement — from 76% to 74% — can move you into a lower rate tier.
Find out more about remortgaging with Vsure Financial, or book a free conversation here.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
The Window to Remortgage
Your remortgage window typically opens 4–6 months before your fixed deal ends. Most lenders allow you to lock in a rate for a future completion date (usually up to 3 months ahead). If you remortgage too early, you will pay an early repayment charge (ERC) on your current deal. ERCs typically range from £500–£5,000. The optimal timing: 4–5 months before completion.
Calculating Whether Remortgaging Saves Money
Let us say you are on a £250,000 mortgage with 3 years remaining at 4.5% (£1,266/month). You find a new deal at 3.75% (£1,161/month) — a saving of £105/month. Remortgage costs: Arrangement fee (£999), Valuation (£200), Legal fees (£250). Total: £1,449. Break-even: 13.8 months. If 3 years remain, remortgaging saves you money.
When NOT to Remortgage
Do not remortgage if your ERC exceeds savings, or if only months remain until your deal ends. If you are stretched on affordability, remortgaging may not be possible.
The Whole-of-Market Advantage
Only 30% of remortgagees shop the whole market. Your current lender knows you will incur switching costs, so they offer competitively. However, the whole market often has significantly better deals. For example: Your current lender: 4.5%. Best available elsewhere: 3.85%. The 0.65% difference = £1,625/year savings.
Remortgage Process Timeline
Month 1-2: Research. Month 3-4: Mortgage in principle. Month 4-5: Valuation. Month 5-6: Offer issued. The entire process takes 6–8 weeks once you have decided to proceed.
Overpayment Strategies
Review your overpayment allowance when remortgaging. Some allow 10% annually. If you can overpay, you might choose a slightly higher rate but longer term to reduce monthly stress, while aggressively overpaying.
Getting Started
Contact Vsure for a free remortgage review. We will calculate your potential savings, model different scenarios, identify your optimal completion date, and find your best rates.
Important: This article is for information purposes only and does not constitute regulated financial advice. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. VSure Financial Ltd is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority. Approved by The Openwork Partnership on 01/02/2025. Speak to an adviser for advice tailored to your circumstances.
