Remortgages

What is a remortgage?

A remortgage is when you switch your existing mortgage to a new one either with your current lender or a new provider keeping the same property.

You can do this to get a better deal, release equity, or change the structure of your loan. If you stay with the same lender, it’s often called a product transfer. If you switch to a new one, it’s treated as a full application.

When should I remortgage?

The most common time to remortgage is when your current fixed or tracker deal is coming to an end. This helps you avoid being moved onto the Standard Variable Rate (SVR), which is usually more expensive.

However, it’s not the only reason. You might also remortgage to:

• Switch to a better or more flexible deal
• Release equity for home improvements or debt consolidation
• Adjust to rising interest rates or changing financial circumstances

What is Loan-to-Value (LTV) and why does it matter?

LTV stands for Loan-to-Value—the percentage of your property’s value that you’re borrowing. As your mortgage balance goes down and your home’s value goes up, your LTV improves.

For example, if your home is now worth £220,000 and you owe £140,000, your LTV is around 64%. The lower your LTV, the better the mortgage rates available to you.

Lenders typically offer lower rates in 5% LTV bands so moving from 85% to 80% LTV can unlock better deals.

Why remortgage with Option Finance?

With rates constantly changing and thousands of deals on the market, knowing when and where to switch can feel overwhelming. That’s where we come in:

• Whole-of-market search – We compare deals from 70+ lenders
• Fast application support – We manage the paperwork and save you time
• Equity release guidance – Find out if you can borrow more for renovations, debts or big life plans
• Broker-only deals – Some lenders only work through advisors like us

Can I remortgage early?

Yes, you can but be mindful of early repayment charges (ERCs). These are fees for ending your current deal early. The closer you are to your deal ending, the lower these tend to be.

Top tip: You can usually secure a new deal up to six months in advance without triggering ERCs and switch again later if better rates appear.

When might remortgaging not be right?

• High ERCs: If fees cancel out any savings, it might be better to wait
• Lower income or credit score: You may not qualify for better deals
• Small mortgage balance: If your loan is under £50,000, fees may outweigh the benefits

Remortgaging in a high-interest rate market

Rates today may be higher than when you last locked in but that doesn’t mean you should accept your lender’s SVR. We can help you find the best of what’s currently available—and guide you through the decision if it’s worth acting now or waiting.

Many lenders are still competing for business and offering limited-time deals. Acting early can help you avoid higher costs later.

Tips to improve your remortgage options

• Reduce your balance: Overpay monthly (if allowed) or add savings to reduce LTV
• Boost your property’s value: Renovations or even a new valuation can lower your LTV
• Give it time: Every mortgage payment helps build equity—sometimes patience pays off

Ready to explore your remortgage options?

Whether you’re remortgaging to save money, switch lenders, or fund your next moveOption Finance is here to help. Get in touch for a free consultation and expert support every step of the way.

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