How to Choose a Remortgage Deal

Start with your current deal

Before you compare anything, gather the details of your existing mortgage. You will usually find these on your latest statement or in your online account:

• Your current interest rate, so you have a benchmark to beat.
• When your current deal ends, which sets your timing.
• Your outstanding balance, which affects how much fees matter.
• Any early repayment charge (ERC), since leaving a fixed deal early can trigger a fee of around 2% to 5% of your balance. Our guide to what remortgaging costs explains these.

If you are still deciding whether to switch at all, it is worth reading whether it is worth remortgaging first, then coming back here to choose the deal itself.

Work out your loan-to-value

Your loan-to-value (LTV) is the size of your loan compared with your home’s value, shown as a percentage. It is one of the biggest factors in the rates you can get, because lenders price their deals in bands, such as 60%, 75%, 85%, and 90%. The lower your LTV, the cheaper the rates you can access.

If your home has risen in value or you have paid down a good chunk of the balance, you may have slipped into a cheaper band since you last borrowed. Our remortgage valuation guide explains how your home is valued for this.

Choose the type of deal

Once you know your LTV, decide what kind of deal fits you, because this shapes which rates you should even be comparing:

 There is no single right answer. A fixed rate suits you if you value a predictable payment, while a tracker can work if you are comfortable with some movement. Pick the type first, then compare rates within it.

Decide how long to fix for

If you go for a fixed rate, the length matters. A two-year fix gives you flexibility to move or re-compare sooner, while a five-year fix gives you a longer stretch of certainty but ties you in for longer, with an ERC if you need to leave early.

Think about your plans: if you might move, borrow more, or expect your circumstances to change, a shorter deal keeps your options open.

Compare the true cost, not just the rate

The headline rate is only part of the picture. A deal with a very low rate can still work out more expensive once you add its product or arrangement fee, especially on a smaller balance. Always compare the total cost over the deal period, which means the monthly payments plus any fees, not the rate on its own.

For example, a deal at 4.2% with no fee can beat one at 4.0% with a £999 fee on a smaller loan, once you spread that fee across a two-year term. It is also worth checking the rate the deal reverts to at the end, usually the standard variable rate (SVR), which often sits around 6.5% to 7.5%.

Look beyond your current lender

Your existing lender will only ever show you its own range, so a new deal from them, known as a product transfer, is quick and cheap but limits your choice. Switching to a new lender opens up the whole market and can unlock a better rate, though it takes a little longer. It is worth comparing both, so you know whether staying put really is your best option or just the easiest one.

Check the flexibility that matters to you

Two deals at the same rate are not always equal. Depending on your plans, look at the features that could matter to you: how much you can overpay each year without penalty (often capped at 10%), whether the deal is portable so you can take it with you if you move, and how the lender handles changes to your circumstances. Match these to what you are likely to need over the deal term.

Tailor the deal to your situation

The right deal depends on your specifics. Three things shape it more than anything else:

• When your current deal expires. The month and year your deal ends decides your timing, and how soon you should lock in a new rate.
• Your estimated LTV. Your loan-to-value band sets which rates you can realistically access, so it is worth estimating before you compare.
• Whether you want to borrow more. If you plan to raise extra money, say for home improvements, that affects which lenders and products suit you, and it usually means extra affordability checks. The same applies if you want to release equity for another purpose.

When to start looking

Start comparing deals around three to six months before your current one ends. You can usually line up a new rate up to six months ahead and lock it in, which protects you if rates rise, and you can often switch to a better deal if one appears before you complete. Leaving it too late risks slipping onto the SVR. Our guide on when to remortgage covers the timing in more detail.

How Speedy Remortgage can help

Our easy-to-use online tool lets you compare remortgage deals from lenders across the UK, with real-time information on the rates available to you, so you can benchmark the market in minutes. Once you have found a deal that suits you, our specialists are on hand to guide you through it, from the paperwork to dealing with the lender, and they can check whether a whole-of-market deal beats what your own lender offers.

We take the time to understand your circumstances and long-term plans, so the deal you choose is the right one for you. If you would like a hand, get in touch. We are here to make remortgaging simple, clear, and stress-free.