Due to remortgage in 2026? Make sure you know your options.

As a valued Howden client, you already benefit from our dedication to protecting what matters most. But did you know you can also access expert mortgage advice through us?

According to UK Finance, there are 1.8 million homeowners who are due to remortgage this year, with many of those coming off low five-year fixes and facing potential ‘payment shock’ with rates higher than what they had previously.

Several months before you come to the end of your existing mortgage deal, it’s time to think about what’s next. Do you keep your mortgage debt with your existing lender and move onto a new deal (known as a ‘product transfer’) or switch to a deal with another lender (remortgage)? There is a growing trend for the latter, with the Bank of England reporting that approvals for remortgaging (which only capture remortgaging with a different lender) rose by 3,200 to 36,600 in November.

If you do neither, your mortgage automatically moves onto your lender’s standard variable rate, which tends to be considerably higher than the rate you are currently paying. So, it usually makes sense to take another deal with your lender or switch to a new provider unless the balance on your mortgage is particularly small so you plan to pay it off in the short term.

There are pros and cons of both options. Staying with your existing lender is easier and means you won’t have to undergo another credit check, but you may pay a higher mortgage rate for that convenience. If you want to get a better rate or want to change anything about your mortgage – add or remove names or borrow more – you may have to switch to another lender. This will mean a new mortgage application, credit check etc and there may be fees associated with this.

General points to consider when deciding between a product transfer or remortgage

Below we run through some other things to bear in mind when choosing between a product transfer and remortgage and what can influence your decision.

• Capital raising - If you need to increase your borrowing, remortgaging to another lender may be a better option.

• When time is of the essence - If you need to move quickly, this may influence your decision as to whether to opt for a product transfer or remortgage. A product transfer is typically quicker than a remortgage because a product transfer generally doesn’t require documentation, such as payslips, bank statements, or income and expenditure assessments, for the transaction to go through. There is also no legal work, which can significantly slow the process down. A valuation isn’t usually necessary although where the lender’s automated valuation is not fit-for-purpose, another valuation may be required.

• When refurbishment increases the value of your home - If you have significantly refurbished your home since taking out the mortgage, this is unlikely to be picked up by the existing lender via its automated valuation appraisal. With most remortgage products, a free valuation is instructed and an up-to-date and relevant valuation carried out to reflect any enhancements. Furthermore, you may be able to restructure any debt from the improvements into your mortgage at a lower rate.

• Restructuring your debt – If for example you have more than one mortgage on your property you may be able to restructure all your existing debt into a more manageable monthly outgoing at a lower rate. 

• Making changes – Remortgaging may allow you to make ‘material changes’ such as changing the repayment type or adding a new name to the mortgage. However, in doing so, you will be subject to a full underwrite so a new suite of supporting documentation may be required. There is the potential for additional fees, such as product fees and non-standard legal work. You should also expect the process to take longer.

Speak to a mortgage adviser

It is always sensible to speak to a whole-of-market broker to discuss the procs and cons of each option and which route is the most suitable for you. During the time you’ve had your current mortgage, your personal circumstances aside from the mortgage may have changed – you may have inherited a lump sum, or your protection needs may have changed.

With a remortgage, your adviser should be able to provide a more holistic review than would be the case if you simply opted for the product transfer your lender offers you a few months before the expiry of your current deal. Rates can be booked up to six months before you need them so it’s worth planning ahead for peace of mind; if, by the time you come to remortgage rates have fallen again, you should be able to move onto a cheaper rate at that time. If, on the other hand, rates have risen, you will be glad you secured a deal when you did.

Your property may be repossessed if you do not keep up repayments on your mortgage. For Buy-to-Let a ‘receiver of rent’ may be appointed and / or your rental property may be repossessed.

We may charge a fee for the advice we provide; this fee will be dependent upon your personal circumstances and will be agreed with you after we have fully understood your requirements. Any fee is payable upon successful completion of your transaction, unless agreed otherwise. We typically receive commission from the lender/insurer.

Mortgage advice is provided by Howden. Howden is a trading name of SPF Private Clients Limited which is authorised and regulated by the Financial Conduct Authority (FCA). SPF Private Clients Limited is an authorised credit broker and not a lender.