Remortgage Myths Busted: Why It May Not Be As Expensive As You Think
For many UK homeowners, the word remortgage triggers an immediate sense of dread. But with UK Finance estimating remortgaging rising to £77 billion in 2026, many Britons are set to remortgage.
Visions of hidden fees, credit score damage, and mountains of paperwork flash to mind. But what if most of what you believe about remortgaging is simply wrong?
It’s time to separate fact from fiction because staying on your lender’s standard variable rate (SVR) out of fear could be costing you far more than you realise.
Myth #1: Remortgaging Is Too Expensive
This is perhaps the most persistent of all remortgage myths, and arguably the most damaging to your finances.
Yes, remortgaging does come with some costs including arrangement fees, valuation fees, and potentially legal fees. But here’s what many homeowners overlook: these costs are almost always outweighed by the savings you make by switching to a better rate.
If you’re sitting on your lender’s SVR, switching to a competitive fixed-rate deal could save you hundreds of pounds every single month. Over a two or five-year fixed term, that’s thousands of pounds back in your pocket.
Many lenders also offer fee-free remortgage products, and some will cover your legal and valuation costs as part of the deal to attract your business. A whole-of-market mortgage broker can identify these deals and run the true cost comparison for you so you know exactly whether is remortgaging worth it for your specific circumstances. Often, the answer is yes, but it’s aways good to seek professional advice from expert brokers to confirm.
Myth #2: It Will Damage My Credit Score
Another common misconception that stops homeowners in their tracks is that remortgaging will damage their credit score. The truth? A remortgage application does involve a hard credit search, which can cause a very minor, temporary dip in your credit score. But this impact is short-lived and, for the majority of borrowers with a reasonable credit history, it presents no barrier to securing a great deal.
What’s more, if you’ve been consistently meeting your mortgage repayments, your credit profile may well have improved since you first took out your mortgage. Lenders look at the full picture including your payment history, debt-to-income ratio, and time on the electoral roll, not just a single credit inquiry.
Myth #3: It’s Only Worth Doing If Rates Have Dropped
Rate environment matters, but it’s not the only reason to remortgage. Your home may have increased in value, moving you into a lower loan-to-value (LTV) band and unlocking better rates. Other scenarios include increased income, or you may want to consolidate debt, release equity, or simply gain the security of a fixed monthly payment.
Remortgage myths thrive when homeowners don’t have access to clear, unbiased advice. The reality is that remortgaging is one of the most powerful financial tools available to UK homeowners, and the cost of not exploring your options is often the biggest expense of all!
To get accurate advice tailored to your individual situation, check out our repayment calculator or contact Exe Mortgages where our friendly advisers are on hand to assist.
Frequently Asked Questions
- When is the right time to start looking at remortgage deals?
Don’t wait until your current deal expires, by then you may have already slipped onto your lender’s SVR, which is almost always their most expensive rate. Start exploring your options around three to six months before your fixed term ends. Most mortgage offers are valid for up to six months, meaning you can lock in a rate now and complete the switch seamlessly when your current deal concludes.
- Is remortgaging worth it if I only have a small amount left on my mortgage?
It can be, but this is where the maths really matters. If your outstanding balance is relatively low, the fees involved may eat into your savings more significantly, so a fee-free product becomes even more important to seek out. That said, rate savings on even a modest balance can still add up meaningfully over a fixed term, and a broker can quickly tell you whether switching makes financial sense for your remaining balance.
- How much does it actually cost to remortgage?
Costs typically include an arrangement fee (typically between £500 – £2,000), a valuation fee, and legal fees. But many lenders offer fee-free deals or cover these costs entirely to win your business. When you stack these figures against the monthly savings of leaving a high SVR behind, the numbers almost always favour switching. A good broker will calculate the true cost of any deal, fees included, so you can compare like for like.
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