How to Remortgage in 2024: A Step-by-Step Guide to Saving Thousands

s, broker processes, remortgaging strategy, and lender decision-making.

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For many UK homeowners, remortgaging in 2024 is not about shaving a few pounds off the monthly payment.

It can mean the difference between a manageable budget and a very uncomfortable jump in costs when a fixed deal ends.

After two years of sharp rate rises, plenty of borrowers are rolling off ultra-low fixed rates arranged in 2021 or 2022.

A household moving from a 1.49% or 1.89% fix to something above 4% or 5% can see a substantial increase in monthly repayments.

That makes timing, preparation and lender choice far more important than they felt a few years ago.

The good news is that remortgaging is usually more straightforward than buying a home, and a well-planned switch can still save thousands over the next two to five years.

The key is understanding what lenders look for in 2024, what products are actually suitable for your circumstances, and how to avoid the common mistakes that push borrowers onto expensive standard variable rates.

What remortgaging means in practice

Remortgaging simply means replacing your existing mortgage with a new one, either with your current lender or with a different lender.

Most people remortgage for one or more of the following reasons:

• their fixed or tracker deal is ending;

• they want a lower interest rate or better monthly payment;

• they want payment certainty through a new fixed deal;

• they need to borrow more for home improvements, debt consolidation or other costs;

• their property value has risen, improving their loan-to-value band;

• they want to change the mortgage term.

In the UK, there are two main routes:

1.

Product transfer:

you stay with your current lender and choose a new deal from its range.

2.

Full remortgage:

you move to a different lender entirely.

A product transfer is usually quicker and lighter on paperwork.

A full remortgage may offer better rates, more flexibility or more suitable criteria, especially if your circumstances have changed.

Many borrowers focus only on the headline rate.

In reality, the cheapest remortgage is the one with the lowest total cost over the deal period once fees, incentives, repayment method and flexibility are taken into account.

Why 2024 is different from recent remortgage years

Borrowers coming to the end of deals in 2024 are facing a market that is calmer than the turmoil seen after the 2022 mini-Budget, but still much more expensive than the era of sub-2% fixed rates.

Lenders are competing again, product ranges are broader, and pricing can shift quickly depending on swap rates and funding costs.

That means borrowers should not assume:

• their existing lender will offer the best retention rate;

• a two-year fix is always cheaper than a five-year fix;

• a lower rate automatically means a lower total cost;

• self-employed, contractor or recently changed income will be treated the same by every lender.

Step 1: Check when your current deal ends

Your starting point is your mortgage offer or latest lender statement.

You need to confirm:

• the end date of your current fixed, discounted or tracker period;

• whether early repayment charges apply if you switch before that date;

• your current balance;

• your remaining mortgage term;

• whether there are any tied-in conditions or exit fees.

Most lenders allow you to secure a new deal three to six months before your current one ends.

That matters because it lets you line up the remortgage in advance and avoid drifting onto the lender's standard variable rate, which is often significantly higher.

If your deal ends on 31 October, for example, it may be sensible to start comparing options in May or June.

If rates fall before completion, some lenders or brokers may be able to switch you to a cheaper equivalent product before the new mortgage starts.

If rates rise, you may be glad you secured an earlier option.

Step 2: Work out your loan-to-value band

Loan-to-value, or LTV, is one of the most important pricing factors in UK remortgaging.

It is the size of your mortgage compared with the value of your property.

The formula is simple:

Mortgage balance property value x 100 = LTV

So if your mortgage balance is £180,000 and your home is worth £240,000, your LTV is 75%.

Lenders often price remortgage products in bands such as:

• 60% LTV

• 75% LTV

• 80% LTV

• 85% LTV

• 90% LTV

If house prices in your area have risen, or if you have reduced your mortgage balance steadily, you may now fit into a lower LTV band than when you last took a deal.

That can materially improve the rates available.

Take a homeowner in Leeds who fixed in 2022 at 85% LTV.

Two years later, after capital repayments and modest house price growth, they might now be near 75% LTV.

That shift alone could open up noticeably better products.

Step 3: Decide what you want the remortgage to do

Not every remortgage is about the lowest monthly payment.

Before comparing products, be clear on your aim.

Usually it falls into one of these categories:

Keep payments as low as possible

If affordability is tight, a lower rate and perhaps a longer mortgage term may help reduce monthly outgoings.

Be careful, though: extending the term can mean paying more interest overall.

Secure certainty with a fixed rate

A two-year or five-year fix may appeal if you want predictable monthly budgeting.

Five-year fixes often carry higher early repayment charges for longer, but they can offer peace of mind.

Stay flexible with a tracker

Some borrowers prefer a tracker, especially if they expect rates to reduce over time or want lower exit penalties.

But tracker payments can move if the Bank of England base rate changes.

Borrow extra funds

If you need money for an extension, new kitchen, loft conversion or other large expense, a remortgage can raise capital.

Lenders will check affordability on the higher borrowing, and they may ask what the funds are for.

Change the term

You might want to shorten the term to clear the mortgage faster, or lengthen it to ease monthly costs.

Both choices affect long-term interest.

Step 4: Check your affordability before the lender does

Affordability rules remain central in 2024.

Even where rates have stabilised, lenders still assess income, spending and resilience to future payment changes.

Before applying, look at your own position honestly.

Questions to ask yourself:

• Has your income changed since your last mortgage application?

• Have you become self-employed, moved to contract work or changed employers?

• Have your childcare costs, travel costs or credit commitments increased?

• Do you carry balances on credit cards, loans, car finance or Buy Now Pay Later arrangements?

• Have you had any missed payments in the last 12 to 24 months?

Lenders can vary significantly here.

One lender may be comfortable with overtime, bonus or commission income; another may take only a portion of it.

One may be friendly to contractors using day rate calculations; another may want two years of accounts.

This is one reason a broker can be useful on anything other than a very straightforward case.

Step 5: Gather your paperwork early

Even a simple remortgage can stall if documents are missing or inconsistent.

In 2024, the standard paperwork often includes:

• photo ID and proof of address;

• latest three months' payslips for employed applicants;

• P60;

• latest three months' bank statements;

• details of any bonuses, overtime or commission;

• for self-employed applicants, SA302s and tax year overviews, or company accounts depending on lender criteria;

• proof of existing mortgage payments;

• details of any loans, credit cards or other commitments.

Consistency matters.

If your bank statements show heavy gambling transactions, regular unarranged overdraft use or unexplained incoming credits, expect questions.

That does not always mean a declined application, but it can complicate underwriting.

Step 6: Compare the real cost, not just the interest rate

This is where many homeowners go wrong.

A remortgage at 4.79% with a £1,499 fee is not automatically better than one at 4.94% with no fee.

The right answer depends on your balance, the length of time you expect to keep the deal, and whether incentives such as free valuation or free legal work are included.

Here is a simplified example for illustration only:

A proper comparison should consider:

• initial monthly payment;

• total cost over the deal period;

• product fee added to the loan or paid upfront;

• valuation and legal costs;

• cashback;

• early repayment charges;

• overpayment allowance, often 10% per year on fixed rates;

• whether the lender's criteria actually fit your income profile.

If your mortgage balance is only £90,000, a no-fee product may work out cheaper than a lower-rate product with a heavy arrangement fee.

On a £400,000 mortgage, the reverse is often true.

Step 7: Decide between staying put and switching lender

This is one of the biggest practical decisions in the remortgage process.

When a product transfer can make sense

• Your income has become harder to evidence.

• You want a quick, low-friction process.

• Your current lender's rates are competitive enough.

• You do not need to borrow extra.

• You would rather avoid a full affordability assessment, where the lender permits a lighter process.

When a full remortgage may be better

• Another lender is substantially cheaper on total cost.

• You want to raise additional borrowing.

• Your current lender's retention range is weak.

• You need a lender with more flexible criteria for self-employment, bonus income or credit blips.

• You want a different product type or features unavailable with your current lender.

One practical example: a couple in Bristol with a £310,000 mortgage may find their current lender offers a simple transfer at 5.14% with no fee, while another mainstream lender offers 4.78% with free legal work and a £999 fee.

The switch could save them enough over two years to justify the paperwork.

On the other hand, if one applicant has recently moved to probationary employment, the safer option might be staying with the current lender.

Step 8: Understand the valuation issue

Remortgage valuations are often carried out using an automated valuation model rather than a physical inspection, especially for straightforward properties.

That can speed things up and reduce cost.

But not every automated figure is favourable.

If a lender values your property lower than expected, your LTV may rise, pushing you into a more expensive product band.

This can happen even in areas where local estate agents think values are stronger.

If the valuation seems clearly off, ask whether the lender allows a review or a full valuation.

Be realistic, though: lenders rely on their own risk models, and they are not obliged to accept a homeowner's opinion of value.

Step 9: Apply early enough to absorb delays

A straightforward product transfer can be arranged relatively quickly.

A full remortgage, however, can still take several weeks depending on underwriting, valuation, legal work and how quickly you provide documents.

As a rough guide:

• Product transfer:

  sometimes a matter of days to a couple of weeks.

• Standard remortgage to a new lender:

  commonly two to eight weeks.

• More complex cases:

  longer, particularly for self-employed borrowers, flats with lease issues, unusual property types or extra borrowing.

Starting early is particularly important if your current deal ends near holiday periods, during a busy summer pipeline, or around year-end when some legal firms and lender processing teams slow down.

Step 10: Review the legal work and completion details

Most UK remortgages involve legal work, even when there is no house purchase.

The solicitor or conveyancer handles the redemption of the old mortgage and registration of the new one.

Many remortgage products include a free legal package.

That can be perfectly adequate for straightforward cases, but it may move more slowly than using your own solicitor.

If timing is tight or the case is more involved, paying for independent legal representation can sometimes be worthwhile.

Check these points before completion:

• the exact monthly payment after the switch;

• whether the first payment date changes;

• any product fee added to the mortgage balance;

• the end date of the new deal;

• the early repayment charges and overpayment limits;

• whether direct debits need to be updated.

A practical remortgage checklist for 2024

If you want a simple framework, use this:

• Check your current deal end date and any early repayment charges.

• Estimate your property value and current LTV band.

• Decide your goal: lower payment, payment certainty, flexibility, extra borrowing or term change.

• Review your affordability, credit commitments and bank statements.

• Gather payslips, bank statements, ID and any self-employed documents.

• Compare your current lender's transfer products against other lenders.

• Look at total cost over the deal period, not just the rate.

• Apply early enough to avoid your lender's standard variable rate.

• Check valuation assumptions and respond quickly to any lender queries.

• Confirm completion date and first payment before the old deal ends.

Common remortgage mistakes that cost borrowers money

Even careful homeowners can make expensive errors.

The most common are:

Leaving it too late

If you start looking only a week or two before your current rate expires, you may run out of time and fall onto the standard variable rate.

Even one month on an SVR can be costly.

Judging deals only by the monthly payment

A lower payment can result from stretching the term rather than securing a genuinely better product.

Ignoring fees

Arrangement fees, booking fees and legal costs can erase the apparent advantage of a lower rate.

Assuming all lenders assess income the same way

This especially affects self-employed applicants, directors of limited companies, contractors and those with variable income.

Borrowing extra without understanding the impact

Consolidating short-term debts into a long mortgage term can reduce monthly pressure but increase the total amount repaid over time.

Not checking early repayment charges

A deal that looks attractive today may become restrictive if you plan to move home, receive a lump sum, or sell within the fixed period.

Should you use a mortgage broker in 2024?

It depends on the complexity of your case and how confident you are comparing products and criteria.

A straightforward employed borrower with clean credit and no extra borrowing may be happy reviewing direct deals and existing lender offers themselves.

However, a broker can be particularly useful where:

• you are self-employed or have fluctuating income;

• you need to raise capital;

• your credit file is not spotless;

• you want to compare product transfer versus full remortgage properly;

• you need help calculating true deal cost and lender fit.

A good broker should explain not only what is available, but why one lender is more suitable than another.

The value is often in criteria knowledge and case packaging, not just rate comparison.

How much could remortgaging save?

The answer varies hugely, but the savings can be meaningful.

Consider a borrower with a £220,000 repayment mortgage over 23 years.

If they avoid spending six months on a standard variable rate that is 1.5 percentage points higher than an available remortgage rate, the saving could run well into four figures.

Add in a better LTV band and a sensible product fee decision, and the total benefit can become more substantial.

On larger balances, the difference is even more pronounced.

This is why treating remortgaging as a diary task rather than a last-minute admin job matters so much in 2024.

Final thoughts: plan early and focus on fit

Remortgaging in 2024 is less about chasing the absolute lowest number on a comparison table and more about finding the right fit for your property, income and future plans.

For some, that means a simple product transfer to avoid disruption.

For others, it means a full remortgage with a different lender, better criteria and a lower total cost.

The homeowners who tend to do best are those who start early, understand their LTV, prepare documents properly and compare deals using real numbers rather than marketing headlines.

If your current mortgage deal ends within the next six months, now is the right time to check your options carefully.

A well-timed remortgage will not reverse higher-rate market conditions on its own.

But it can stop unnecessary overspending, improve financial breathing space and, in many cases, save thousands over the life of the next deal.