Should I Remortgage in 2026? When to Switch & What to Watch For

If your fixed-rate mortgage is ending in 2026, you’re facing a decision that could save — or cost — you thousands of pounds. With the base rate at 4.5% and competitive deals available below 4%, the timing matters.

This guide covers when to remortgage, what it costs, and how to decide whether switching is the right move.

When Should You Start Looking at Remortgage Deals?

Most lenders allow you to lock in a new rate 3–6 months before your current deal expires. This is important because:

• If rates drop further: You can often switch to an even better deal before completion if a lower rate becomes available.
• If rates rise: Your locked-in rate is protected.

The worst thing you can do is let your deal expire and roll onto your lender’s standard variable rate (SVR). SVRs currently range from 6.5% to 8.5% — dramatically higher than the best fixed rates available.

On a £300,000 mortgage, the difference between a 4% fixed rate and a 7% SVR is approximately £560 per month. Over 12 months, that’s £6,720 you didn’t need to spend.

Fixed rate ending soon? Start the process 6 months early. Book a free remortgage review now.

What Are Remortgage Rates Like in 2026?

Rates have improved significantly from the highs of 2023. As of spring 2026:

Product type	Indicative range (spring 2026)
5-year fixed	From around 3.8–4.2% (often with 25%+ equity)
2-year fixed	From around 4.0–4.5%
Tracker	Typically base rate + 0.5–1.0%

Five-year fixes are particularly competitive right now, often priced similarly to or below 2-year fixes. This is unusual and suggests lenders expect rates to remain relatively stable.

Costs to Watch When Remortgaging

Switching isn’t always free. Factor in:

• Early repayment charges (ERCs): If you’re still within your fixed period, you may face charges of 1–5% of the outstanding balance.
• Arrangement fees: New mortgage deals may come with product fees of £500–£1,500. Sometimes a slightly higher rate with no fee works out cheaper overall.
• Valuation and legal fees: Many remortgage deals include free valuation and free legal work, but check the specifics.
• Exit fees: Your existing lender may charge a small admin fee (typically £50–£300) to close your current mortgage.

A good broker will calculate the total cost of switching versus staying, including all fees, to ensure remortgaging actually saves you money.

Remortgage to Release Equity: Is It Worth It?

Releasing equity means borrowing more than your current mortgage balance and taking the difference as cash. Common reasons include home improvements, debt consolidation, or helping family members with deposits.

Whether this makes sense depends on:

• The interest rate: You’re paying mortgage rates on the extra borrowing, which is typically cheaper than personal loans or credit cards.
• Your loan-to-value: Releasing equity pushes your LTV higher, which may affect the rate you’re offered.
• The purpose: Using equity for home improvements that add value can be a smart investment. Using it for lifestyle spending is riskier.

If you’re weighing up equity release versus a standalone remortgage, it’s worth comparing the numbers side by side with an adviser.

Remortgaging When Self-Employed

Self-employed borrowers can remortgage just as easily as PAYE employees, provided you have the documentation. You’ll typically need:

• Last 2 years’ SA302s: Or company accounts if you’re a limited company director
• Tax year overviews: Matching your SA302s
• A clean payment history: On your existing mortgage

Contractors have additional options. Some lenders will assess your income based on your day rate multiplied by 48 weeks, rather than requiring tax returns. This often produces a significantly higher income figure.

If your income has grown since you first took out your mortgage, remortgaging could unlock not just a better rate but additional borrowing capacity.

Self-employed and remortgaging? We know which lenders work best for your income structure. Book a free call.

Should You Stay With Your Current Lender?

Your existing lender will usually offer a product transfer — a new rate without a full application. This can be quicker and involves less paperwork.

However, product transfers have limitations:

• You can’t release equity with most product transfers.
• Your lender may not offer the best rate available in the market.
• If your circumstances have improved (higher income, more equity), shopping the market could get you a much better deal.

We always check what your current lender is offering alongside the wider market, so you can compare like-for-like.

When Remortgaging Doesn’t Make Sense

There are situations where staying put is the right call:

• Your current deal still has 2+ years left and the early repayment charge outweighs the savings.
• You’re planning to sell within the next 12 months.
• Your circumstances have changed (e.g., reduced income, new debts) and you might not pass a new affordability assessment.

Even in these cases, it’s worth having a conversation. Sometimes the numbers surprise you.

Ready to explore your options? Book a free consultation — we compare 90+ lenders to find the right deal for you.