Remortgaging in Scotland: When, Why, and How to Switch

★ Key Takeaways

• Start the remortgage process 6 months before your current deal ends to secure the best rates without rushing
• Avoid the Standard Variable Rate (SVR) at all costs – it can be 8-10%, adding hundreds to your monthly payments
• Remortgage costs typically range from £0-2,500, but many lenders offer free valuations and legal work
• Staying with your current lender is faster and cheaper, but switching could unlock significantly better deals
• A mortgage broker can compare the whole market and lock in your rate now – you can reapply if rates drop before completion

With an estimated 1.8 million UK homeowners set to remortgage in 2026, now is a critical time to understand your options. Whether your fixed-rate deal is ending, you want to access equity, or you're simply looking for a better rate, remortgaging could save you thousands of pounds.

In this comprehensive guide, I'll walk you through exactly when to remortgage, why it makes sense, what it costs, and how to navigate the process in Scotland. Get this right, and you could dramatically reduce your monthly payments while avoiding the dreaded Standard Variable Rate.

Timing is everything when it comes to remortgaging. The golden rule is to start the process 6 months before your current deal ends. Most lenders allow you to lock in a new rate up to 6 months in advance, and that rate is typically guaranteed until completion.

Why start so early? Because remortgaging isn't instant. Between applications, valuations, and legal work, the process can take 4-8 weeks. Starting early gives you breathing room and ensures you don't accidentally slip onto your lender's Standard Variable Rate.

The SVR Trap: Avoid at All Costs

When your fixed-rate or tracker deal ends, you'll automatically move onto your lender's Standard Variable Rate (SVR). In 2026, SVRs typically sit between 8% and 10% – compared to the best 2-year fixed rates around 3.50% at 60% LTV.

On a £200,000 mortgage over 25 years, the difference between a 3.50% fixed rate and an 8% SVR is approximately £480 per month. That's nearly £6,000 a year you'd be throwing away by not remortgaging.

There are several compelling reasons to remortgage, and it's not just about getting a lower rate:

• Lower monthly payments – The most common reason; securing a better mortgage rate can save you hundreds each month
• Access equity – If your property has increased in value, you can borrow against it for home improvements, consolidating debts, or other purposes
• Better LTV bracket – If you've paid down your mortgage or your home has risen in value, you may now qualify for better rates reserved for lower loan-to-value ratios
• Improved terms – Switch to a lender offering better flexibility, such as overpayment options or payment holidays
• Avoid the SVR – As mentioned above, staying on SVR is almost never the right choice

Is It Time to Remortgage?

Marc can compare the whole market and find you the best remortgage deal – free of charge.

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Understanding the hidden costs of remortgaging helps you calculate whether switching is truly worthwhile. Here's a breakdown of typical fees:

Remortgage Costs Breakdown

Important: Many competitive remortgage deals include free valuations and free legal work, so your only costs may be the arrangement fee and a small exit fee. Always calculate total costs against potential savings over your new deal term.

One of the biggest decisions when remortgaging is whether to stay with your current lender (a "product transfer") or switch to a new lender entirely. Each approach has its pros and cons:

Stay vs Switch Comparison

My advice? Always compare both options. Your current lender may offer a competitive retention deal, but you won't know unless you've checked what else is available. A mortgage broker can do this comparison for you in minutes.

Another key decision is the length of your new fixed-rate deal. Here's how to think about it:

• 2-year fix: Good if you expect interest rates to fall further – you'll be able to remortgage sooner at potentially lower rates. Slightly lower rates currently but less certainty.
• 5-year fix: Ideal if you value payment certainty and want to lock in today's rates for longer. Protection against potential rate rises. Slightly higher rates but peace of mind.

With the Bank of England expected to make gradual rate cuts through 2026 and 2027, a 2-year fix gives you flexibility to review sooner. However, if your priority is budgeting certainty and protection against any surprise rate increases, a 5-year fix makes sense.

Here's what to expect when remortgaging in Scotland:

• Step 1: Start 6 months before your deal ends – speak to a broker or check rates online
• Step 2: Compare your current lender's retention deals against new lender offers
• Step 3: Lock in your chosen rate – it's usually held for up to 6 months
• Step 4: Complete the application, valuation, and any legal work
• Step 5: Your new deal starts when your current deal ends – seamless transition

Pro tip: Once you've locked in a rate, keep an eye on the market. If rates drop significantly before your new mortgage starts, you can often reapply for a better deal with the same lender (or switch entirely) at no extra cost.

Can I remortgage early if I find a better deal?

Yes, but you'll likely face an Early Repayment Charge (ERC) – typically 1-5% of your outstanding loan. Before switching early, calculate whether the savings from the new rate outweigh the ERC. Sometimes it's worth paying; often it's better to wait until your deal ends naturally.

What if my circumstances have changed since my last mortgage?

If your income has dropped, you've changed jobs, or you're now self-employed, switching lenders might be trickier as you'll need to pass new affordability checks. In these situations, a product transfer with your existing lender may be easier since they often don't require new income verification. A broker can advise on the best approach.

Should I use a broker or go direct to a lender?

A broker can compare the whole market in minutes and often has access to exclusive deals not available directly. They handle the paperwork and chase lenders on your behalf. Best of all, many brokers (including McGhie Mortgages) are paid by the lender, so the service is free to you.

Is there ever a reason to stay on the SVR?

Very rarely. The SVR has no early repayment charges, so if you're planning to sell your home within a few months, staying briefly on SVR avoids locking into a new deal. Otherwise, the higher rate almost never makes sense compared to securing a new fixed or tracker deal.

Don't leave money on the table by letting your mortgage drift onto the SVR. Whether you're 6 months away from your deal ending or already past it, now is the time to explore your options.

At McGhie Mortgages, I help homeowners across Edinburgh, the Lothians, and all of Scotland find the best remortgage deals. I'll compare your current lender's retention offer against the whole market, handle all the paperwork, and make sure you get the best possible rate for your circumstances.

Time to switch? Book a free, no-obligation consultation and let's find you the best remortgage deal today.