Remortgaging

Your mortgage deal has an end date. What happens after it depends on what you do before it arrives.

When a fixed or discounted deal ends, most lenders move you onto their standard variable rate by default, no decision required, no action taken. As of 10 August 2026, the average SVR stood at 7.13%, against an average two-year fixed rate of 5.63%, according to Moneyfacts. On a £250,000 repayment mortgage over 25 years, that gap runs to roughly £230 a month, and over £70,000 in extra interest across the term.

You don't choose the SVR. It's what happens when you choose to do nothing.

According to UK Finance, 1.6 million fixed-rate mortgage deals ended in 2025, with a further 1.8 million due to end in 2026. The Bank of England base rate has held at 3.75% since its 30 July 2026 decision, but rates you were offered years ago, particularly if you fixed while rates sat near historic lows, are unlikely to be matched by anything on the market now. Knowing that in advance changes what you do next.

What you're actually choosing between

Your current lender may offer you a new deal automatically. This is a product transfer, and it can look like the easy option: less paperwork, no fresh affordability check, nothing to compare. It's rarely the best option. Other lenders price differently, and the only way to know if your lender's offer is competitive is to check.

Before you accept a product transfer

• Get at least two comparison quotes from the wider market first.
• A mortgage broker can search across lenders your current one won't show you.
• A better rate elsewhere often outweighs the convenience of staying put.

You can usually lock in a new deal up to six months before your current one ends. Locking in early gives you time to compare properly, rather than making a rushed decision in the final weeks of your existing deal.

Remortgaging isn't only for people facing the end of a deal. It's worth considering if you're already on your lender's SVR, if a discounted or tracker rate is about to expire, if you want the payment certainty of a fixed rate instead of a variable one, if you want more flexibility to overpay, or if you want to borrow more against your home for another purpose. Each of these points to a different kind of deal. Knowing which one applies to you narrows the search before you start it.

Before you switch early
Ending a mortgage deal before its term is up can trigger an early repayment charge, typically 1% to 5% of the outstanding balance. Weigh that cost against what switching early would save you before you commit.

Getting the right deal, not just a new one

Start with what you actually owe

Before comparing anything, know your numbers: your current interest rate, what you'd pay on your lender's SVR, your outstanding balance, your home's current value, and how many years remain on the mortgage. These five figures are what any broker or comparison tool needs to give you an honest answer.

Decide how much you want to borrow

Most homeowners remortgage for the same amount they already owe. That's not the only option. You can borrow more, spreading the cost of home improvements or consolidating other debt into your mortgage rate. You can also borrow less, using savings to pay down a lump sum, which can move you into a lower loan-to-value bracket and unlock a better rate.

The loan-to-value gap is real money. Moneyfacts data from August 2026 puts the average five-year fixed rate at 95% LTV at 6.07%, against 5.75% at 90% LTV, and closer to 4.4–4.5% for the best deals at 60% LTV. A smaller loan against the same property, or a property that's grown in value, can move you into cheaper territory without you doing anything to the loan itself.

Decide on your term

You don't have to keep your original term. Shortening it raises your monthly repayment but cuts the total interest you pay and gets you mortgage-free sooner. Extending it lowers your monthly outgoings now, at the cost of paying more overall. Either choice should sit against your retirement date: most lenders expect the mortgage cleared by then, or proof you can afford it from retirement income.

Choose the right type of deal

A fixed rate holds your repayment steady for budgeting, at the cost of missing out if rates fall. A variable rate moves with the market in both directions. A tracker rate moves in step with the Bank of England base rate specifically. None is universally right. The choice depends on how much certainty you want to pay for.

Check what your home is worth

If you've owned your home for five years, there's a good chance it's worth more than you paid. According to Zoopla, the average UK home has gained £36,100 in value since 2021. A higher valuation can move you into a lower LTV bracket and unlock a better rate, even if you haven't touched the mortgage balance. Get it valued before you assume your LTV bracket hasn't changed.

Check your credit report before you apply

Lenders use your credit report to price your application. A Which? survey of over 4,000 people in 2024 found that 32% of those who checked their report found a mistake, most often an incorrect address, a debt that wasn't theirs, or a payment wrongly marked as missed. A small error can be the difference between an approval and a rejection. Check it before you apply, not after you're turned down.

Where a broker earns their place

You can apply direct. A broker changes what you're choosing from and how the application lands.

A broker searches across lenders you wouldn't otherwise see, including ones that don't deal directly with the public, and matches your circumstances to the lenders most likely to approve you, not just the ones with the lowest headline rate. That matters more if your situation isn't straightforward: self-employed income, a lower credit score, a first remortgage after a change in circumstances.

Ask whether a broker is whole-of-market or restricted to a panel of lenders before you commit to one. A restricted broker can still be useful, but you should know the limits of what they're showing you.

A broker also reviews your paperwork before it reaches a lender, which is where most delays and rejections start, and can flag issues you'd otherwise discover only after a decline. Many can also advise on the protection that sits alongside a mortgage: buildings insurance a lender requires, or life insurance and income protection that keep your repayments covered if your circumstances change.

What the right deal gives you back

Get this right and the cost of your mortgage stops being something that happens to you. You know your rate before your old deal ends, not after. Your repayments match a term built around your actual retirement date, not your original one. If your circumstances change, the paperwork already reflects it, rather than leaving you to explain it under pressure.

Talk to us before your current deal ends. We'll search the market for you, compare it against staying with your existing lender, and help you land on a deal built around your circumstances rather than your lender's default offer.

Important information

This guide is provided by Pembroke Financial Planning Limited for general information only and does not constitute advice. The information is aimed at retail clients only.

Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.