Breakdown
How it works
Lenders move you onto a standard variable rate when a deal ends — typically 2–4 points higher. Remortgaging to a new fixed or tracker saves the difference, minus arrangement, legal and valuation fees (often £0–£1,500) and any early repayment charge if you switch before your current deal ends.
Formula
Worked example
£200,000 over 20 years: 7.5% SVR = £1,611; 4.6% deal = £1,276 → £335 a month, £20,100 over 5 years less £1,500 fees. Fees recovered in 5 months.
Frequently asked questions
When should I start remortgaging?
Up to 6 months before your deal ends — offers are valid that long, and you can switch to a better rate if they fall before completion.
Product transfer or full remortgage?
A product transfer (same lender) has no legal or valuation fees and no affordability check; a full remortgage may offer a better rate or let you borrow more. Compare both.
Does a lower LTV help?
Yes — bands at 60/75/80/85/90% LTV. Overpaying to drop a band before remortgaging can cut the rate by 0.2–0.5%.