How remortgage rates are set
Remortgaging rates are shaped by various factors, including:
- Deposit / Loan to Value (LTV), or equity levels. Lower LTV bands often secure better pricing. The more equity you have in your property, the lower your LTV, which lenders view as less risky; which often means you’ll qualify for more competitive rates. In 2026, UK lenders may accept as little as 10% equity (90% LTV), though the most attractive rates are typically offered when you have at least 40% equity (60% LTV) or more. The best rate and deal for you will also depend on your individual objectives.
- Term length. The Bank of England’s base rate plays a major role in whether remortgage rates rise or fall. As does the overall economic climate and decisions made by each lender. Shorter-term fixed-rate mortgages often have lower rates though you will need to look into remortgaging sooner; while longer-term deals offer more stability yet might be less cost-effective if interest rates fall.
- Key lender criteria. This determines the types of deals you will have access to. Factors such as your credit history, income and remaining mortgage balance are all important.
Rates shown are indicative only and used for illustrative purposes. Actual rates vary by lender, product, borrower profile and market conditions at the time of application.
| LTV | Term | Remortgage rate when moving to a new lender | Product transfer rate when switching with your existing lender |
|---|
| 60% | 2-year fixed | 3.82% | 3.71% |
| 60% | 5-year fixed | 3.94% | 3.83% |
| 75% | 2-year fixed | 4.14% | 3.90% |
| 75% | 5-year fixed | 4.21% | 4.02% |
| 85% | 2-year fixed | 4.35% | 4.13% |
| 85% | 5-year fixed | 4.35% | 4.13% |
External remortgaging expected to grow by 10% in 2026
Remortgaging remains a dominant feature of the mortgage market into 2026. UK Finance estimates that 1.8 million fixed-rate deals expire in 2026, with external remortgaging expected to grow by around 10% year on year.
Product transfers vs remortgaging away
A product transfer involves changing the terms of your existing mortgage with your current lender. It’s usually faster, involving less paperwork and typically has no legal fees. However, you are limited to the rates and products offered by your current lender.
Remortgaging away involves switching your mortgage to a new lender. While you’ll have access to a wider range of products and potentially better rates, the process is more complex and requires:
- Credit checks
- Verification of income
- Property valuations
It may also include valuation and legal fees.
Product transfers may be more suitable for those seeking simplicity and lower upfront costs, while remortgaging away can offer more choice and savings but involves more steps and possible additional costs.
It's wise to consult a professional mortgage broker to help you decide which option fits your needs best.
How remortgage rates usually compare with purchase rates
Remortgage rates tend to be lower than purchase rates, especially when compared against the SVR offered by many lenders. Homeowners frequently remortgage to benefit from better rates, release capital or consolidate debts, which can result in notable savings.
Though your own individual circumstances will also help determine whether remortgage rates will be lower for you.
Factors such as your credit score, LTV ratio and the prevailing interest rates at the time will all have an impact.
Think carefully before securing other debts against your home – by consolidating your debts into a mortgage, you may be required to pay more over the entire term than you would with your existing debt which could increase the amount of interest payable overall
