Remortgage Tips: Practical Advice to Save Money and Stay Safe

If you own a home in the UK, chances are you’ve thought about remortgaging at some point. Maybe you heard the word on the news, or a friend bragged about a lower rate. The idea is simple – replace your existing mortgage with a new deal that’s cheaper or better suited to your situation. But the process can feel confusing, and a few wrong moves can cost you thousands. Below are the most useful tips to keep in mind before you pick up the phone.

Know When It Actually Makes Sense

First, don’t chase a new deal just because anyone else is doing it. Check your current rate, the remaining term, and any early‑repayment fees. If you’re still in a low‑interest period, you might lose more in fees than you’ll save on interest. A quick calculation – take your remaining balance, multiply it by the difference between the old and new rates, then divide by 12 – tells you roughly how much you’ll save each month. If that number is lower than the fee spread over the next few years, it’s not worth it.

Another good trigger is a change in your financial picture. If you’ve paid off a chunk of the loan, switched jobs, or your credit score has improved, you could qualify for a better deal. Lenders love borrowers who show stability, and they’ll often reward you with a lower APR.

Shop Around, Don’t Settle for the First Offer

Just like you’d compare car prices, compare mortgage deals. Use a few UK‑based comparison sites, then call the lenders directly – sometimes a better rate is waiting for you if you ask. Ask about any hidden costs: arrangement fees, valuation fees, or admin charges. Some lenders offer “no‑fee” deals, but they may hide a higher interest rate, so read the fine print.

If you’re comfortable with a broker, they can pull together offers from multiple banks and building societies. Their fee is usually worth it if it saves you a few hundred pounds a year.

Mind the Credit Score Factor

Your credit score plays a big role in the rate you’ll get. Before you apply, pull your credit report from Experian, Equifax, or TransUnion. Fix any errors, pay down high‑balance credit cards, and avoid new credit inquiries for a month. A score boost of even 20 points can shave 0.1% off the interest, which adds up over a 25‑year term.

When you’re ready to apply, have all documents ready – proof of income, tax returns, and a recent mortgage statement. The smoother the application, the quicker the lender can give you a decision, and the less chance you’ll get stuck with a temporary rate that could disappear.

Watch Out for Common Risks

Remortgaging isn’t risk‑free. One of the biggest dangers is over‑borrowing. It’s tempting to take out a bigger loan and use the extra cash for home improvements, but that also means higher monthly payments. Keep the new monthly figure lower than your current one, unless you have a clear plan to manage the extra cost.

Another risk is the “teaser” rate. Some lenders lure you with a low introductory rate that jumps after a few years. Make sure you know the “reversion rate” – the rate that applies after the teaser period – and calculate whether you could still afford it.

Finally, remember that switching a mortgage can affect other products tied to it, like an offset account or a mortgage-linked credit card. Check if you’ll lose any perks before you pull the trigger.

Take Action with Confidence

Now that you have the basics, the next step is simple: gather your current mortgage details, pull your credit score, and start comparing offers. Even a small reduction in interest can free up cash for a holiday, a renovation, or just a bigger savings pot.

Remortgaging is a powerful tool when used wisely. Keep these tips in mind, ask questions, and you’ll walk away with a deal that truly works for you.