Remortgage

Remortgage rates change regularly as lenders respond to the Bank of England base rate, swap rates and competitive pressure. In July 2026, the average two-year fixed remortgage rate sits around 4.62%, while the average five-year fix is approximately 4.41%. The best deals are considerably lower if you have a strong LTV position and clean credit history.

Your actual rate depends on the combination of your loan size, equity, credit profile and the type of deal you choose. A homeowner with 40% equity in a standard property will typically qualify for rates 0.5 to 1.0 percentage points below someone with only 10% equity.

It is worth noting that the headline rate is not the full cost. You also need to factor in arrangement fees, which can range from nothing to over 1,000 pounds, and early repayment charges on your existing deal. A remortgage calculator can help you compare the total cost across different rate and fee combinations.

Lenders price remortgage rates based on risk. The lower the risk you present, the lower the interest rate you will be offered. Several factors feed into that risk calculation.

Loan-to-value ratio is the single biggest driver. LTV measures how much you owe against what your property is worth. If your home is valued at 300,000 pounds and you owe 180,000, your LTV is 60%. Lenders reserve their lowest rates for borrowers at 60% LTV or below because there is a larger equity cushion protecting their loan.

Credit score and history also play a significant role. Late payments, defaults or CCJs within the past six years will narrow your lender options and push rates higher. If your credit is less than perfect, read our guide on remortgaging with bad credit to understand your options.

Income and affordability matter too. Lenders stress-test your ability to repay at higher interest rates. If you are self-employed, you will typically need two to three years of accounts or SA302 forms to demonstrate stable earnings.

When you remortgage, you will choose between three main rate types: fixed, tracker and variable. Each carries different risk and reward trade-offs.

Fixed rates lock your monthly payment for a set period, usually two or five years. A two-year fixed deal gives you short-term certainty and the flexibility to switch again sooner. A five-year fixed rate typically comes with a lower headline rate and protects you for longer, but you are locked in with early repayment charges if you want to leave early.

Tracker rates follow the Bank of England base rate plus a set margin. If the base rate is 4.50% and your margin is 0.49%, you pay 4.99%. Your payments fall if the base rate is cut, but rise if it goes up. Trackers suit borrowers who believe rates will drop or who want flexibility, as many tracker deals have no early repayment charges.

Standard variable rates (SVR) are set by your lender and can change at any time. The average SVR in July 2026 is around 7.85%. If your current fixed or tracker deal has ended, you are likely on your lender's SVR, and switching to a new deal could save you hundreds of pounds per month.

Timing your remortgage well can save you thousands of pounds over the life of your mortgage. The general rule is to start looking for a new deal three to six months before your current rate ends. Most lenders let you lock in a rate this far ahead, and if rates drop further before completion, a good advisor can switch you to the better deal.

Waiting until your deal expires means you drop onto your lender's SVR, which is almost always significantly more expensive. On a 200,000 pound mortgage, moving from a 4.00% fixed rate to an SVR of 7.85% would add roughly 380 pounds to your monthly payment.

Market timing is harder to predict. The Bank of England base rate influences swap rates, which in turn drive fixed mortgage pricing. If you are unsure whether to fix now or wait, a comparison of remortgage versus product transfer options can help you weigh the alternatives. Your advisor can also model different scenarios based on rate forecasts.

The remortgage process typically takes four to eight weeks from application to completion, so factor that timeline into your planning.

Securing the lowest remortgage rate available to you comes down to preparation and access. Here are the steps that make the biggest difference.

• Reduce your LTV: overpaying your mortgage, even by small amounts, reduces your balance and can tip you into a lower LTV band at remortgage time. Dropping from 76% to 74% LTV could unlock rates 0.3 to 0.5 percentage points lower.
• Improve your credit profile: pay down credit card balances, register on the electoral roll and clear any inaccuracies from your credit file before you apply.
• Compare total cost, not just the rate: a deal at 3.89% with a 999 pound fee may cost more over two years than a 4.09% deal with no fee. Use a remortgage calculator to compare the true cost.
• Consider releasing equity carefully: if you need to remortgage to release equity, remember that borrowing more increases your LTV and will push your rate up.
• Use a whole-of-market advisor: a mortgage advisor searches across 90+ lenders, including deals not available directly to the public. This is especially valuable if your circumstances are complex, such as self-employment or adverse credit.