When interest rates rise and fixed‑rate deals come to an end, remortgaging becomes a lifeline for homeowners seeking stability and affordability. Switching your mortgage can slash monthly payments, free up funds for renovations or help you consolidate debt. Yet it is not as straightforward as it sounds. A poorly planned remortgage can leave you paying more than necessary, missing out on better terms or scrambling to complete paperwork as your current rate expires.
Over the past few years, the UK mortgage market has evolved significantly. Regulators have tightened affordability tests, lenders have become more cautious and property valuations have fluctuated in response to regional differences. For borrowers, the message is clear: preparation matters. Not only do you need to watch for early signs that your current mortgage is becoming less competitive, you must also avoid the hidden pitfalls that can derail or delay your remortgage.
In this article, Willow Private Finance draws on decades of experience to highlight five of the most common mistakes homeowners make when switching mortgage deals and explains how to navigate around them. Whether you are about to remortgage for the first time or have refinanced before, these insights will help ensure you approach the process strategically, saving both time and money. For more on recognising the right moment to act, see our companion piece Is It Time to Remortgage? Key Signs to Watch, which outlines the early indicators that your current deal may no longer suit your needs.
The UK mortgage market in 2025 continues to reflect the economic turbulence of recent years. After a period of significant rate increases, the Bank of England has signalled greater stability, but rates remain higher than the ultra‑low levels enjoyed earlier in the decade. Lenders are still processing the aftershocks of inflation, cost‑of‑living pressures and the potential for further rate adjustments. This uncertainty makes remortgaging both an opportunity and a challenge.
Another noticeable shift involves regulatory scrutiny. The Mortgage Market Review and its successors require lenders to stress‑test borrowers’ finances, ensuring they could afford repayments if rates increased by several percentage points. As a result, affordability assessments remain stringent, and underwriting teams may ask for more detailed evidence of income and expenditure than a borrower might expect. Borrowers with stable salaries may find this process straightforward, but those with variable income—bonuses, commission, dividends or freelance earnings—often encounter more probing questions.
Property valuations also play a critical role. While some regions have seen robust growth, others have experienced stagnation or modest declines. Surveyors contracted by lenders may adopt a conservative view, which can affect the amount you can borrow and the interest rate available to you. In 2025, borrowers cannot assume that an estate agent’s optimistic valuation will match the lender’s assessment. Understanding the local market and being prepared for a potential down‑valuation is therefore essential.
Competition between lenders remains healthy, however. High‑street banks, building societies, specialist lenders and private banks are all seeking to attract quality borrowers. This diversity of choice is good news for homeowners but can be confusing. Each lender has its own criteria, appetite for different types of income and risk thresholds. This is where a specialist broker such as Willow Private Finance can simplify the landscape by identifying the lender that best matches your circumstances.
In simple terms, remortgaging involves replacing your existing mortgage with a new one secured on the same property. You might remortgage to secure a lower rate, change the mortgage term, shift from repayment to interest‑only (or vice versa), or release equity for renovations or debt consolidation. Despite owning your home and having a track record of repayments, you must still undergo a full credit application. Lenders will re‑evaluate your income, outgoings, credit history and property value just as they did when you first purchased the property.
The process typically follows these stages: first, you review your current mortgage details, including the expiry date of your fixed rate, outstanding balance, repayment method and any early repayment charges (ERCs). Next, you assess your wider finances—income from salaries, bonuses, dividends or self‑employment, plus your regular spending. This assessment often reveals whether you need to tidy up certain financial behaviours, such as paying down credit cards or reorganising personal loans, before approaching a lender.
Once you know your position, you or your broker research the market to identify lenders whose criteria and products align with your needs. Different lenders will interpret your income and expenditure differently, and some may offer more generous affordability calculations than others. With a lender in mind, you obtain an Agreement in Principle (AIP), which is essentially a conditional offer subject to a full underwrite and valuation. After submitting your full application—complete with supporting documents—your property is valued, underwriting is completed, and, if all is well, a mortgage offer is issued. A solicitor then completes the switch by redeeming your old mortgage and registering the new one.
Throughout this journey, seemingly minor oversights can lead to delays, extra costs or suboptimal deals. The sections below examine the most common mistakes we see and explain how to avoid them.
One of the biggest remortgage pitfalls is simply starting too late. Many homeowners put off reviewing their mortgage until their fixed or discounted rate is only a few weeks from expiry. By then, time is limited, and the urgency to avoid rolling onto the lender’s Standard Variable Rate (SVR) can force you into quick decisions that aren’t necessarily in your best interest.
Switching a mortgage usually takes at least four weeks for straightforward cases, and more if complexities arise. Underwriters may ask for additional documentation, valuations might come in lower than expected, or there could be backlogs in processing due to high demand. If you haven’t left yourself sufficient breathing room, you may miss the opportunity to negotiate better terms or compare alternative products. You could also lose access to competitive deals if a lender withdraws them or if your AIP expires before you can complete.
The remedy is to begin planning your remortgage about six months before your current deal ends. This gives you plenty of time to gather documents, explore different lenders and lock in a rate ahead of any potential increases. Starting early also means you can tackle any credit issues or organise your finances—actions that demonstrate reliability to a lender and improve your chances of being approved. For a more detailed discussion of timing your switch, see our article Is It Time to Remortgage? Key Signs to Watch, which explains why staying alert to market conditions helps you strike at the right moment.
Your property’s value determines your loan‑to‑value (LTV) ratio—how much you’re borrowing relative to the property’s worth. This ratio directly affects the rates and products available to you. A common error is assuming that an informal valuation or an online estimate will be sufficient. In reality, lenders rely on their own surveyors or automated valuation models, which may produce a lower figure than you expect.
If your valuation comes in lower than anticipated, your LTV ratio increases, pushing you into a higher LTV band. Higher LTV bands generally translate to higher interest rates, and in some cases, lenders may refuse requests for additional borrowing. A down‑valuation can also jeopardise your plan to release equity for home improvements or debt consolidation.
To mitigate this risk, research recent sales of comparable properties in your area and understand how lenders approach valuations. If your property has unique features that enhance its value—a larger plot, recent extensions or a premium finish—compile supporting evidence to share with the surveyor. Should a valuation be unexpectedly low, your broker may challenge it or suggest an alternative lender with a more favourable valuation policy. It may also help to reduce your mortgage balance by clearing some of your existing debt before the valuation, thereby improving the LTV ratio. For more insights into the evolving criteria that surveyors and underwriters use, read How Mortgage Underwriting Has Changed in 2025.
A surprising number of remortgage applications falter because borrowers underestimate the importance of demonstrating affordability and providing comprehensive documentation. Even though you have a history of paying your mortgage, lenders must ensure you can afford the new loan under current and future conditions. They will stress‑test your finances at interest rates higher than today’s and scrutinise both your income and outgoings.
If you have multiple income streams, prepare to provide detailed evidence. Salaried employees should gather recent payslips and their P60. Those with bonuses or commissions should show at least two or three years of statements to prove consistency. Self‑employed borrowers need to supply business accounts, tax calculations and, often, bank statements demonstrating regular income flows. Lenders will examine your personal spending in detail, noting outgoings like childcare, school fees, utilities and discretionary spending. High credit card balances, missed payments or recurring overdrafts may raise red flags.
The documentation requirement becomes even more demanding if you are remortgaging to release equity. Lenders want to know how you’ll use the funds—be it a home extension, debt consolidation or another investment—and they may ask for quotes or plans. Organising paperwork early not only accelerates the process but also allows you to spot and address any gaps. For specialised advice on presenting complex income.
Many homeowners remain loyal to their existing lender or accept a convenient product transfer without exploring the wider market. While a product transfer is quick and may incur no valuation or legal fees, it can also lock you into a less competitive rate, a shorter term or a less flexible structure than what’s available elsewhere. In 2025, with competition across mainstream banks, building societies, specialist lenders and private banks, it pays to look further afield.
Different lenders have varying appetites for different types of borrowers. Some may be more generous in accepting bonus or commission income; others might cater specifically to high‑net‑worth individuals or those with significant assets. Private banks often offer competitive rates for borrowers willing to place savings or investments with them. Specialist lenders, meanwhile, might be better suited to borrowers with complex credit histories or unconventional properties.
A broker with whole‑of‑market access can present options you might never discover through direct comparison websites. They’ll weigh up not only interest rates but also product fees, early repayment charges, portability and the ability to make overpayments. Shopping around can reveal creative solutions, such as combining fixed and variable rate tranches or choosing an offset product that allows you to reduce interest costs by linking savings to your mortgage. In some cases, leveraging a product like a let‑to‑buy mortgage—something we cover in Let‑to‑Buy in 2025: Keeping Your Purchase Moving When You Can't Sell—can enable you to refinance your current property and purchase another without selling. Exploring all available options ensures you secure the best terms for your circumstances.
The interest rate is often the headline attraction of any mortgage deal, but focusing solely on the rate can lead you to overlook important details. Remortgaging almost always involves some fees—arrangement fees, valuation fees, legal fees—and these costs can vary widely between lenders and products. Choosing a product with a lower rate but a high fee may not save you money if your mortgage balance is small or if you plan to switch again soon.
Flexibility is another vital consideration. Can you make overpayments without penalty? Is the mortgage portable, so you can move home without incurring charges? Does the product offer an offset facility, allowing you to reduce interest by linking savings? The answers to these questions can significantly affect the long‑term cost and usability of your mortgage. For example, if you expect to receive bonuses or windfalls, a product with generous overpayment allowances can let you reduce the capital more quickly, saving interest and shortening the term.
Finally, remortgaging should fit within your broader financial strategy. Think about how long you want to fix your rate—shorter fixes provide flexibility if rates fall, while longer fixes offer security if rates rise. Consider whether you plan to move home in the next few years, invest in additional property or release equity for other ventures. Being clear about your goals helps you choose a product that supports them. If in doubt, speak with a qualified adviser who can map out the pros and cons of each option and ensure that the fees and features align with your plans.
Imagine a couple who purchased their home five years ago for £600,000 with a £360,000 mortgage on a five‑year fixed rate. They’ve kept up repayments comfortably and have recently completed a loft conversion. Their fixed rate is due to end in six months. Confident in the value added by the conversion, they assume the property is now worth £750,000 and plan to remortgage to release £50,000 for further home improvements.
Believing their bank will offer a competitive rate, they delay starting the remortgage until two months before their rate expires. When they approach their lender, they discover that the estimated valuation is only £720,000 and that the lender’s affordability calculator won’t take account of the husband’s annual bonus because it is paid in shares rather than cash. As a result, their maximum borrowing is lower than anticipated, and they cannot release the full £50,000. Worse, by the time they decide to approach other lenders, their initial lender’s product expires and rates have risen across the market.
Had they sought advice earlier, they might have discovered a specialist lender that would accept share‑based bonuses or a private bank willing to use retained company profits in the affordability calculation. They could also have challenged the valuation or provided evidence of similar sales in their area. Starting six months before the rate end would have given them time to compare offers and secure a competitive rate. This example illustrates how two common mistakes—waiting too long and failing to explore alternatives—can combine to frustrate the best‑laid plans.
The remortgage landscape is likely to remain dynamic beyond 2025. While interest rates may not return to the historic lows seen earlier in the decade, the market is unlikely to experience the steep hikes of recent years. Lenders are settling into a new normal: a balanced approach to risk, thorough affordability checks and keen competition for quality borrowers. Regulation will continue to ensure prudent lending, but innovation will persist as lenders adapt products for a diverse range of clients.
Technological advancements will streamline parts of the remortgage process. Automated valuations and digital identity checks will speed up straightforward applications, but human underwriting will still be essential for complex cases involving multiple income streams, foreign currency earnings or significant assets. Specialist and private lenders are expected to grow their market share as more borrowers seek bespoke solutions.
For homeowners, the key takeaway is that proactive planning will always pay dividends. The sooner you review your mortgage, tidy up your finances and consult with a broker, the more options you will have. Even if rates fluctuate or regulations change, a well‑timed and well‑researched remortgage can protect you from rising costs and unlock financial flexibility. As you consider your next steps, keep in mind the lessons from these common pitfalls and remember that expert guidance can make all the difference.
At Willow Private Finance, we see remortgaging as a strategic opportunity, not a bureaucratic chore. Our advisers understand the complexities of modern lending—from the strict affordability models applied by high‑street banks to the bespoke underwriting of private banks and specialist lenders. We have access to the whole market, including products that are not available directly to consumers, and we know how to present complex income profiles in the best light.
Whether you need to remortgage a single property, unlock equity across a portfolio or restructure borrowing following a change in personal circumstances, we can help. We work closely with surveyors, underwriters and solicitors to ensure each step of the process is managed smoothly. Our goal is not only to secure a competitive rate but also to ensure the structure of your mortgage aligns with your long‑term objectives. From the first review of your current mortgage through to completion, we are committed to providing clear, personalised advice.
Q1: When should I start the remortgage process?
Begin reviewing your mortgage about six months before your fixed or discount rate expires. This timeframe allows you to gather documentation, explore the market and avoid being forced onto a lender’s SVR.
Q2: Do I need a property valuation for a remortgage?
Yes. Lenders will require either an automated or physical valuation to confirm the property’s current market value. The valuation outcome influences your LTV and the rates available.
Q3: How do lenders assess variable income like bonuses or dividends?
Lenders apply different criteria. Many will average variable income over two or three years; some may accept a larger proportion, while others may ignore it entirely. Working with a broker helps identify the right lender for your income structure.
Q4: Can I release equity when remortgaging?
In most cases, yes. However, lenders will assess affordability, your property’s value and how you plan to use the funds. Equity release is generally allowed for renovations or debt consolidation, but less so for speculative investments.
Q5: Does switching my mortgage affect my credit score?
Applying for a remortgage usually involves a hard credit check. This may cause a small, temporary dip in your score, but the impact is minor unless you make multiple applications in quick succession.
Book a free strategy call with one of our mortgage specialists.
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About the Author
Wesley Ranger is the Director of Willow Private Finance and has more than 20 years of experience in the property finance industry. He specialises in structuring complex mortgage cases, from high‑value remortgages to bespoke private bank loans, helping clients across the UK and internationally secure tailored solutions. Wesley’s deep understanding of how lenders interpret income and risk makes his insight invaluable for homeowners navigating modern mortgage challenges.
Important Notice
This article is for general information purposes only and does not constitute personal financial advice. Mortgage product availability, eligibility, and rates depend on your individual circumstances and may change at any time.
Always seek tailored advice before committing to any financial arrangement.
Willow Private Finance Ltd is authorised and regulated by the Financial Conduct Authority (FCA No. 588422). Registered in England and Wales.
