Best remortgage deals from 5.23% for January 2024

When it comes to remortgage deals, rates are still fluctuating. So before you lock into your next deal, it's important to understand what you should consider before switching. 

Thousands of homeowners will be bracing themselves for a mortgage rate shock if they’re due to remortgage this year.  If you're coming off an affordable fixed-rate mortgage in 2024, your new mortgage is likely to cost more than your current one. The reason for this is that mortgage rates are much higher than deals seen in previous years. 

For example, on January 1 2022, someone remortgaging with a 40% deposit could get an average two-year fixed rate of 1.73%, according to data firm Moneyfacts. A year on in 2023 and the equivalent deal would have cost 5.39%, and mortgage rates are looking to stay at the same level into 2024.

While some homeowners will be wondering whether they should fix their mortgage, and how long for, it's important they get advice tailored to their specific circumstances from a mortgage broker. 

Best remortgage deals in January 2024

Rates are correct at the time of writing and are for illustrative purposes. Speak to your lender or mortgage broker to find the best deal for your specific circumstances.  

 No early repayment charges apply. Free valuation. £500 cash back available on completion. This deal tracks the Bank of England base rate (currently 5.25%) by +0.14%. If the base rate rises again (the next review is 1 February) your rate will also rise. Because there are no early repayment charges you can move to a fixed rate without penalty if the monthly payment rises too high for your budget.  

No early repayment charges. This deal tracks the Bank of England base rate (currently 5.25%) by +0.49%. You can make unlimited overpayments and switch to a fixed rate before the end of the product term if you wish. 

Early repayment charges apply. Deal offered as part of the homebuying bundle. A rate of 4.69% is available for a fee of £999. 

Early repayment charges apply. Deal comes with £250 cash back on completion. Free valuation. Only available through a mortgage broker. The maximum loan limit is capped at £550,000. 

Early repayment charges apply. Deal comes with free legal work and a free valuation. 

You can also use our mortgage calculator for guidance on how much you could borrow:

When should you start looking for your remortgage deal?

You don’t need to wait until your fixed rate ends before you start hunting for a remortgage deal. You can start looking for a new remortgage deal three to six months ahead of your old one expiring. 

You can reserve the rate in advance and proceed with the remortgage process but hold off your completion until the day after your deal expires. That way you’ll avoid moving on to your lender’s more expensive standard variable rate at all.

If there are lower rates available from your remortgage lender by the time you come to switch deals you can usually ditch the one you reserved and grab the cheaper one without losing any money.

Check what rates your existing lender is willing to offer you. They often reserve exclusive, cheaper rates for their own borrowers and some lenders will let you switch to a cheaper rate six months before your old one ends.

How to find the right remortgage deal for your circumstances

To get the best mortgage deal, you need to compare rates and get your calculator ready to do some sums. You can search online for the best remortgage rates using a price comparison website, such as our sister brand Go.Compare. By submitting basic details such as your annual salary, how much your home is worth and how much you want to borrow, you’ll find the best remortgage deals.

Chris Sykes, technical director, Private Finance, says: 'When it comes to remortgaging, make sure you compare what your current lender is offering versus what the rest of the market is offering. I’ve seen situations where sticking with your existing bank would cost tens of thousands more than looking elsewhere. Just because your lender was the best when you took the mortgage out, doesn’t mean it still is.'

'Think carefully before choosing the free solicitor option too. We generally find using your own solicitor rather than taking free legals is less stressful for the borrower and a smoother experience.'

Alternatively, you can ask a traditional mortgage broker to search for the best deals on your behalf. Brokers also caution borrowers against waiting to remortgage in case rates fall further.

If your deal ends and you end up being transferred to your lender’s standard variable rate while you wait for rates to fall, you may end up spending more in interest than you’ll save. 

How to work out how much you will have to repay

You’ll need a calculator to work out the best remortgage deal. Add together the monthly payments for the length of time you are tied in for (normally the duration of a fixed rate) then add the product fee, and minus any cashback.

For example, if you wanted to borrow £200,000 on a three-year fixed rate at 3.77% over 20 years with a £999 fee, it would cost you a total of £43,767 over three years (36 monthly payments of £1,188 plus £999).

You should do the same calculation for other deals you’re considering, then compare the total figures.

When looking at remortgage deals, you’ll need to understand your loan-to-value (LTV). This is how much of your property’s value you need to borrow as a mortgage. When you remortgage, the ‘deposit’ required is actually the equity in your property.

For example, if your house is valued at £200,000 and you need to borrow £150,000, this means you have a deposit/equity of £50,000 (25%) and you can apply for remortgage deals with a maximum LTV of 75%. The higher the proportion of equity you have in your home, the cheaper your rate will be. 

Property values have risen significantly over the past two years. The more equity you have in your home the cheaper your rate will be. Make sure you get an up-to-date valuation to make sure you’re unlocking cheap rates that you may now be eligible for.