Should I Remortgage in 2025?

If your fixed-rate mortgage deal is ending soon, you might be wondering whether now is the right time to remortgage. With average UK mortgage rates falling through 2025, from just over 4% to around 3.8%, and remortgaging making up more than 60% of new applications, you’re not alone in asking the question.

This guide explains how remortgaging works, when it makes sense, and what the current UK market looks like, so you can make a confident decision before your deal ends.

What is Remortgaging?
Remortgaging means switching your existing mortgage to a new deal, either with your current lender or a different one. Most people remortgage when their initial fixed-rate period ends, to avoid being moved onto the lender’s Standard Variable Rate (SVR), which is usually much higher.

The process is similar to getting your first mortgage, but typically simpler since you already own the property. You'll need to apply for a new mortgage, go through affordability checks, and may need a property valuation.

Signs You Should Consider Remortgaging Now

Your Fixed Rate is Ending
This is the most common reason to remortgage. When your fixed-rate deal expires, you'll automatically move onto your lender's SVR. The average standard variable rate is just below 8%, which is significantly higher than current fixed rates available in the market.
If your current mortgage deal ends in the next 6 months, and certainly if it ends in the next 4 months, you should start looking at remortgage options. This gives you time to find the best deal and complete the process before your current rate expires.

Better Rates Are Available
Even if your deal hasn’t ended, it might still be worth checking what’s available. In October 2025, the best two-year fixed-rate remortgage is 3.80% at 60% loan-to-value (LTV) from Santander. Five-year fixed deals at 80% LTV start around 4.15%, and at 90% LTV around 4.36%.
However, remember that leaving your current deal early may incur early repayment charges, which we'll discuss later.

You Want to Release Equity
If your property has gone up in value or you’ve repaid a large portion of your mortgage, you may be able to release equity when you remortgage. Homeowners often use this money for home improvements, debt consolidation, or investing elsewhere.

You Want Better Terms
Remortgaging can also help you switch from an interest-only mortgage to a repayment deal, reduce your mortgage term, or gain flexibility to make overpayments without penalties.

The Current UK Remortgage Market (October 2025)
Understanding the current market helps you make an informed decision about timing your remortgage.

Rates and Market Outlook
Mortgage rates in the UK have fallen gradually through 2025, supported by stable inflation at about 3.1%. The Bank of England base rate is expected to remain steady for the rest of the year, so most experts don’t expect large rate drops soon.

That means the rates available right now are considered competitive, and waiting much longer may not lead to significantly better deals.

What Affects the Rate You’ll Get
Your personal situation has a big impact on the rate you’ll be offered. Lenders look at your loan-to-value ratio, credit score, income stability, and mortgage term. Generally, the lower your LTV, the better the interest rate you’ll qualify for.

How to Find the Best Remortgage Deal

Compare the True Cost
Don’t focus only on the headline rate. Product fees, valuation costs, and other charges can make a low-rate deal more expensive overall. Use a remortgage calculator to see how much you’ll actually save over the term.

Consider Your Loan-to-Value Ratio
If your home’s value has increased since your last mortgage, you might have moved into a lower LTV bracket. For example, from 85% to 75%. That could unlock access to better remortgage deals with lower interest rates.

Decide Between Fixed and Tracker Mortgages
A fixed-rate remortgage gives you predictable payments for a set period, often two, three, five or ten years.

A tracker mortgage moves up or down in line with the Bank of England base rate. For example, the lowest variable-rate mortgage in October 2025 is 4.59% from The Co-operative Bank. Just remember that tracker rates can rise as well as fall.

Work With a Whole-of-Market Broker
This is where a mortgage broker such as Key Mortgages can make a big difference. Instead of being limited to one lender’s products, a broker can search across the whole market to find the most suitable options for you.
A broker can also explain fees, help you understand which costs are worth paying, manage the paperwork, and make sure your application goes through before your current deal ends. If you’re self-employed or have complex circumstances, professional advice is especially valuable.

The Remortgaging Process: What to Expect
Remortgaging a property takes between 4 to 8 weeks on average in the UK. Switching lenders to a new mortgage deal will generally take around 6 to 8 weeks, based on one that avoids any complexities or unique circumstances.

If you're doing a product transfer (staying with your current lender), it can take around a week. You can actually start your search six months before your current deal expires, allowing you to lock in a rate.

Here’s how it works:
1. Research and apply. Compare remortgage deals yourself or through a broker.
2. Valuation. Your new lender will arrange a valuation of your property.
3. Offer. If approved, you’ll receive a formal mortgage offer.
4. Legal work. A solicitor or conveyancer handles the legal side and redemption of your old mortgage.
5. Completion. Your new lender pays off your existing mortgage and your new deal begins.

Costs to Expect When You Remortgage

Remortgaging can save you thousands over time, but there are still costs to consider. These include:

Arrangement Fees
Many mortgages come with arrangement or product fees, which can range from nothing to over £1,000. Some lenders allow you to add these to your mortgage, though this means paying interest on them over the mortgage term.

Valuation Fees
Your new lender will want to value your property. Some lenders offer free valuations, while others charge fees typically ranging from £150-£1,500 depending on property value.

Legal Fees
Conveyancing for the remortgaging process usually costs between £200 - £500. The cost for remortgage conveyancing when appointing your own solicitor can typically range between £250 and £750. Many lenders offer free legal services for remortgages, or provide cashback to help cover solicitor fees.

Early Repayment Charges
This is potentially the biggest cost if you're leaving your current deal before it expires. ERCs typically range from 1% to 5% of the outstanding mortgage balance and may decrease over time. This could amount to thousands of pounds.

Some lenders reduce the rate you pay the longer you've had the deal. For example, if you take out a 5 year fixed rate mortgage, the ERC might be 5% in year one, 4% in year two, and so on.

Common Remortgaging Mistakes to Avoid
One of the biggest mistakes homeowners make is waiting until the last minute. You should begin your remortgage at least three months before your deal ends to avoid being moved to your lender’s SVR.

Another mistake is only checking with your current lender. While staying put can be convenient, it might not be the best value. Comparing the wider market often reveals cheaper or more flexible options.

It’s also easy to focus only on the interest rate and ignore the total cost, including fees. A slightly higher rate with lower fees can work out cheaper overall.

If you’re thinking of switching early, don’t overlook your early repayment charge. Make sure the savings from a better rate actually outweigh the penalty. And before applying, always check your credit report - errors or missed payments can affect the rate or lender options available to you.

Should You Remortgage Now?
The decision to remortgage depends on your individual circumstances, but here are some general principles:

You should definitely remortgage if:
● Your fixed rate is ending within 4-6 months
● You're currently on your lender's SVR
● You can access significantly better rates without early repayment charges

You should consider remortgaging if:
● You want to release equity for a specific purpose
● Your circumstances have changed (improved credit, lower LTV)
● You need different mortgage terms or features

You might want to wait if:
● You have substantial early repayment charges that outweigh potential savings
● Your current deal doesn't expire for many months and rates haven't improved significantly
● Your circumstances have changed in ways that might affect your eligibility (e.g., recent change in employment)

Take Action: Get Expert Remortgage Advice
The remortgage market can be complex, with hundreds of products available and various factors affecting which deals you can access. Working with an experienced mortgage broker ensures you don't miss out on the best deals or make costly mistakes.

At Key Mortgages, we offer:

● Whole-of-market searches to find your best available rates
● Expert guidance through the application process
● Help with complex situations
● Clear explanations of costs and options
● Support from application through to completion

Ready to explore your remortgage options? Contact Key Mortgages today for a free, no-obligation remortgage review. We'll help you understand what rates you can access and whether remortgaging now makes financial sense for your situation.

Don't let your fixed rate expire and end up on an expensive SVR. Start your remortgage journey today and potentially save thousands of pounds over the coming years.

The information in this guide is accurate as of October 2025. Mortgage rates and products change frequently. For the most current information and personalised advice based on your circumstances, speak with a qualified mortgage advisor.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.