Looking for a remortgage?

15 Aug 2022

When is the Best Time to Remortgage?

Not happy with your mortgage deal? You can switch to a new deal at any time, but this can come with early leaving fees.

What does this mean? Remortgaging is when you change your current mortgage deal to another without moving home. You can do this with your current lender or switch to a brand-new lender.

With a remortgage you can find yourself a better deal, meaning you pay less each month. However, many deals will have early exit fees so you need to weigh up whether it’ll be worth it.

We are an online mortgage advisor and can help with all remortgaging enquiries, so feel free to get in touch and a team member will be on hand to help.

What Is a Remortgage?

A remortgage refers to changing your mortgage and switching to a brand-new mortgage deal with a different lender or changing deals but sticking with your current lender.

You may want to do this because your current deal is ending or because you want to save money or pay lower interest rates.

How Does it Work?

When you remortgage, you’re ultimately signing a new mortgage deal. This will follow the same process as applying for any mortgage, by making an application and sending it to a mortgage lender. They will still need to check your eligibility to either accept or decline your application.

It’s important to look at your current mortgage deal in comparison to others on the market to ensure you’re getting a better deal.

When’s the Best Time to Remortgage?

You wouldn’t want to remortgage for the sake of it, so it’s important to understand when remortgaging would be financially beneficial.

You should consider remortgaging if any of the following situations are related to you:

  • You have a fixed-rate mortgage that is ending soon.
  • Interest rates are continuing to rise, you want to get a good deal before they increase further.
  • Interest rates have declined, meaning that you’re paying more than what you could be if you remortgaged now.
  • Your house has significantly gone up in value.
  • You’d like to pay more monthly mortgage fees, but your lender won’t allow you to.

Your Current Fixed-Rate Deal is Ending

One of the most common reasons to remortgage is when your fixed-rate deal is coming to an end.

Fixed-rate mortgages are usually the cheapest, but because of this they usually don’t last very long – it will usually be between two to five years.

When this deal ends, you’ll be put on to your current lender’s standard variable rate mortgage which is likely to have a much higher interest rate.

To avoid this, many people look to switch to a better deal a couple of months before their fixed-rate mortgage ends.

When Rates Are Low

Mortgage interest rates fluctuate in line with the Bank of England’s base rate. So if you got a mortgage when rates were high, you might be paying more than you would be if you took out a mortgage now.

With the rise of inflation, the base rate is expected to continue to rise this year so it may be worth looking into fixed rate deals if you want to avoid paying more later on.

It’s important to remember that you may have to pay an early exit fee when changing to a new mortgage, but we can help you work out if paying this and remortgaging will still benefit you financially.

When You’ve Built Up Equity

Your home may have increased in value since you sorted your mortgage originally, meaning the value of your mortgage could be a lot less expensive to the value of your house.

This means that you could be entitled to lower mortgage rates. Again, we would need to consider whether the early repayment charges will impact the benefits of remortgaging in a situation like this.

You Want to Overpay

If you’ve had a pay rise or sudden access to a chunk of money, you may want to spend it on your mortgage. However, not all lenders will allow this as they won’t earn as much interest.

You can remortgage to find a lender willing to reduce the size of your loan to make it cheaper for you, as well as being able to pay more per month if you would like.

When To Avoid Remortgaging

Remortgaging is a great option if it will benefit you financially, however it won’t always suit everyone. There are some situations where remortgaging will make you worse off, so avoid the hassle if any of the following relates to you:

  • Your credit score has decreased since applying for your previous mortgage. Try to improve your credit rating before remortgaging.
  • You’re earning less than when you applied for your current mortgage.
  • You own less than 10% of your property.
  • Avoid a remortgage if the total fees are more expensive than your total savings in your new mortgage.
  • You have a good mortgage deal already.

Bag Yourself a Great Deal

If you think you might be paying too much interest or you’re just curious as to whether remortgaging would make you better off, we can help. Our professional mortgage advice and experience will help make sure you get the best deal possible.

Get in touch with the team by giving us a call on 03300 58 60 58 or email us over on ask@mortgages.online.


Andrew Montlake

As Managing Director, Andrew looks after the strategic goals that drive the vision and culture of the company, maintaining and promoting our Brand, Marketing, PR & Communications, as well as looking after our Corporate, Introducer, and Lender relationships.

He is the author of a highly acclaimed Mortgage Blog and host of our successful Mortgage & Property Podcasts and he has also won 8 major industry awards; Best Press Spokesperson (twice), Best Marketeer (twice), Mortgage Personality of the Year (twice), Mortgage Strategist of the Year and most recently Best Business Leader Broker (11-50 brokers).

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