With interest rates constantly shifting and many fixed-term mortgage deals coming to an end, now could be the perfect time to explore the best remortgage rates in the UK. Whether you're looking to reduce your monthly payments, release equity, or avoid being rolled onto your lender’s standard variable rate (SVR), remortgaging can be a smart financial move in 2025.
What is remortgaging and how does it work in the UK?
Remortgaging means switching your existing mortgage to a new deal – either with your current lender or a new one. It’s not about moving home but about getting better terms on your existing property loan. Many UK homeowners remortgage to access lower rates, release equity, or consolidate debts.
Who offers the best remortgage rates in the UK right now?
In 2025, some of the most competitive remortgage rates are offered by high street banks and specialist mortgage lenders. Rates for 2- and 5-year fixed deals are especially attractive for borrowers with strong credit and a loan-to-value (LTV) ratio below 75%.
Example deals include:
2-year fixed from 4.29% (60% LTV)
5-year fixed from 4.49% (75% LTV)
Tracker rates starting from 4.10%
These deals are subject to change daily, so always compare through a broker or online platform to access exclusive offers.
Fixed or variable? Choosing the right remortgage deal
When choosing between fixed and variable rates, consider your risk appetite and financial goals.
2-year fixed:
✅ Short-term flexibility
❌ May face rate hikes sooner
5-year fixed:
✅ Stability and budgeting ease
❌ Higher early repayment charges
Tracker/variable:
✅ Follows the Bank of England base rate
❌ Monthly payments can fluctuate
💡 2025 forecast: Experts predict a slow fall in interest rates by late 2025, but with uncertainty around inflation, many borrowers still prefer fixed-rate security.
What factors affect your remortgage rate?
Several personal and property-related factors can influence the deal you're offered:
Credit score – A strong score unlocks better rates.
Loan-to-value ratio (LTV) – The lower your LTV, the cheaper your deal.
Debt-to-income ratio (DTI) – Lenders assess affordability.
Loan term – Shorter terms often mean lower rates.
Property value – Changes since your last valuation can affect eligibility.
How to qualify for the lowest remortgage rates
To boost your chances of securing a top-rate deal:
Check your credit file for errors and improve your score where possible.
Pay down debts to improve your DTI ratio.
Build equity by overpaying your current mortgage if penalty-free.
Avoid big financial changes before applying (like switching jobs).
Use a whole-of-market mortgage broker for the best deals.
Act early – start shopping 3-6 months before your current deal ends.
Step-by-step: How to remortgage in 2025
Review your current deal – Know when your fixed term ends and if early repayment charges apply.
Set your goals – Lower payments? Equity release? Better flexibility?
Get an Agreement in Principle – A lender’s initial offer based on basic checks.
Compare deals – Use comparison tools or a broker to find suitable options.
Apply for your chosen mortgage – Provide documentation and wait for approval.
Legal process – Your solicitor will handle paperwork and completion.
🕒 Average completion time: 4–8 weeks.
Remortgage costs to consider
While some deals come with “fee-free” options, here are typical costs to keep in mind:
Early repayment charge (ERC) – Charged if you exit a deal early.
Product fee – Lender fees for arranging the deal (often £999).
Valuation fee – Property revaluation may be required.
Legal fees – Many lenders offer free legal services, but check the small print.
Broker fees – Fee-free brokers exist, but some charge for premium advice.
Should you remortgage now or wait?
With many UK homeowners facing higher repayments as fixed deals end, remortgaging now could protect you from being moved to a costly SVR (currently averaging 7.5%+). While rates are forecast to gradually decline, timing the market is tricky – acting early gives you control and options.
Alternatives to remortgaging
If remortgaging isn’t ideal right now, consider:
Product transfer – Switch to a new deal with your current lender, often faster and cheaper.
Home equity loan – Borrow against your home’s value without refinancing.
Further advance – Top up your existing mortgage for home improvements or other needs.
Debt consolidation loans – Consider if you have unsecured debts with high interest rates.
Remortgaging with bad credit: What are your options?
It’s still possible to remortgage with bad credit, though your options may be limited. Specialist lenders may consider your application, especially if:
You’ve made consistent mortgage payments
Your LTV is below 80%
You can provide evidence of improving financial circumstances
Expect higher rates and additional scrutiny, but a broker can help you find tailored options.
FAQ: Best remortgage rates in the UK
Who has the best remortgage rates in 2025?
Banks like HSBC, Barclays, and Nationwide currently offer competitive deals, but brokers can access exclusive rates.
How early can I remortgage?
Typically 3-6 months before your current deal ends, avoiding ERC.
Is it worth switching for a 0.5% lower rate?
Often yes – a small rate drop can save thousands over the term.
How long does the remortgage process take?
Most remortgages take 4–8 weeks to complete.
Can I remortgage to release equity?
Yes, many homeowners remortgage to fund renovations or large purchases.
Compare the best remortgage deals today
Remortgaging isn’t just about chasing lower rates – it’s about finding the right deal for your financial goals. With the 2025 market still evolving, now’s a great time to reassess your mortgage.
🔍 Use trusted mortgage comparison tools or speak to a fee-free broker to explore personalised deals and save money long-term.