If your fixed-rate mortgage deal is coming to an end — or it already has — 2026 could be a really important year to act. After a turbulent few years for mortgage rates, the market is finally starting to stabilise and move in borrowers' favour. But that doesn't mean you should just sit back and let your lender roll you onto their standard variable rate.
In this guide, we'll cover what's happening with remortgage rates right now, when you should act, how much you could save, and the step-by-step process to remortgage your London property smoothly.
What's Happening with Remortgage Rates in 2026?
There's finally some genuinely good news for homeowners. The Bank of England held its base rate at 3.75% in February 2026, down from its peak of 5.25%. Most market forecasts suggest the base rate could fall further — possibly to around 3.25% by the end of 2026.
Meanwhile, competition between lenders is fierce. Best-buy remortgage deals have already dropped below 4% for borrowers with strong equity, while average two-year fixed rates sit around 4.85% and five-year fixes around 4.94% according to Moneyfacts data. The gap between the average rate and the best available deal is substantial — which is exactly where a good broker earns their value.
If your fixed deal has already ended and you've drifted onto your lender's Standard Variable Rate (SVR), you could be paying 6.5–7%+ right now. Acting quickly could save you hundreds of pounds every single month.
Why Remortgage? The Main Reasons
Most people think of remortgaging purely as a way to save money on their monthly payments — and it often is. But there are several good reasons to remortgage, depending on your situation:
- Your current deal is ending — the most common reason. If you're coming off a fixed rate, now is the time to find a new deal rather than defaulting to your lender's SVR.
- You want to save money — switching to a lower rate can save hundreds per month, especially if you took out your mortgage when rates were higher.
- You want to release equity — if your London property has risen in value, you may be able to release some of that equity for home improvements, paying off other debts, or other purposes.
- You want more flexibility — perhaps a different term length, or the ability to overpay more each month.
- Your circumstances have changed — income increases, changes to employment, or a shift in your financial goals can all be good reasons to review your mortgage.
How Much Could You Save?
The figures can be eye-opening. If you're currently sitting on a Standard Variable Rate of 7%, remortgaging to a competitive deal at around 4–4.5% on a £400,000 London mortgage could save you well over £500 a month — that's over £6,000 a year.
Even moving from an average rate to a best-buy deal can be significant. Here's how it can look in practice:
| Mortgage Balance | At 4.85% (avg) | At 3.95% (best-buy) | Monthly Saving |
|---|---|---|---|
| £250,000 | £1,430/mo | £1,285/mo | ~£145/mo |
| £350,000 | £2,002/mo | £1,799/mo | ~£203/mo |
| £500,000 | £2,860/mo | £2,570/mo | ~£290/mo |
| £750,000 | £4,290/mo | £3,855/mo | ~£435/mo |
Illustrative examples based on 25-year repayment term. Actual rates will depend on your LTV, credit profile, and lender criteria.
When Should You Start the Remortgage Process?
This is one of the most common questions we get — and the answer is: earlier than you think.
Most lenders will let you lock in a new rate up to 6 months before your current deal ends. Given that the application process itself can take anywhere from 1–3 weeks for a mortgage approval (subject to which lender is used), followed by the lender's free conveyancing service which can take a further 2–4 weeks, you should ideally be speaking to a broker around 3–6 months before your deal expires.
If your deal has already ended and you're on an SVR, act now. Every month you delay costs you money.
Deal ending in September 2026? Start exploring your options in March or April. You can often secure a rate now that won't start until your current deal ends — so you're protected if rates rise in the meantime.
Should You Stay With Your Current Lender?
Your existing lender will likely contact you with a "product transfer" offer — a new fixed rate deal without you having to go through a full application. It can be tempting to just accept it for the sake of convenience.
But here's the thing: lenders know that loyalty is worth money to them, and their product transfer offers aren't always the most competitive. A 2026 UK Finance report projects product transfers will grow by 13% this year — largely because people don't realise they could do better elsewhere.
Always compare your lender's offer against the wider market before accepting. That's what we're here for.
Remortgaging in London — What's Different?
London property values mean that many homeowners here have built up significant equity over the years — even in a relatively flat market. That works in your favour when remortgaging, because a lower loan-to-value (LTV) ratio unlocks better rates.
For example, if you bought a London property for £400,000 with a 10% deposit five years ago and it's now worth £480,000, your LTV has dropped substantially — and you may now qualify for rate bands that weren't available to you when you first took out the mortgage.
Step-by-Step: How to Remortgage in 2026
Check when your current deal ends
Look at your mortgage paperwork or call your lender. Note the end date and any early repayment charges (ERCs) that might apply if you switch before it ends.
Get an up-to-date property valuation
Your LTV determines your rate. If your property has increased in value, you may be in a lower LTV band than you think — which could unlock significantly better deals.
Speak to a whole-of-market broker
Don't just accept your lender's product transfer offer without checking the whole market. A broker will search every suitable lender and compare total cost — including fees — not just headline rates.
Decide on deal type and term
Two-year fix vs five-year fix? With rates expected to fall further, there's a genuine decision to make here. Your broker will help you weigh up the options based on your situation.
Submit your application
Your broker packages and submits everything. Subject to the lender, mortgage approval typically takes 1–3 weeks, with the lender's free conveyancing service taking a further 2–4 weeks to complete.
New deal starts
Your new rate kicks in, your solicitor handles any legal work, and you start benefitting from your lower monthly payments.
How AJM Financial Can Help with Your Remortgage
As a whole-of-market London mortgage broker with over 15 years' experience, we work with clients remortgaging properties right across the capital — from first-time remortgagers who've never done this before, to seasoned homeowners with complex income structures or high-value properties.
We'll search the entire market — including lenders you won't find on comparison sites — to make sure you're getting the best possible deal for your circumstances. And in most cases, we don't charge a broker fee.
- Free, no-obligation initial consultation
- Whole-of-market search including specialist lenders
- One dedicated adviser from start to completion
- No broker fees in most cases
- Available around the clock — no call centres, no queues
- Expertise in complex cases: self-employed, high-value, unusual income
Don't leave money on the table. Book a free consultation with AJM Financial today and we'll tell you exactly what's available, how much you could save, and how to make the process as painless as possible. Call us on 0203 137 5213 or book online here.
Your home may be repossessed if you do not keep up repayments on your mortgage. AJM Financial Limited is an Appointed Representative of Stonebridge Mortgage Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority. Registered in England & Wales No. 11333894. Rate and savings examples are for illustrative purposes only and subject to change — speak to an adviser for current, personalised rates.
