Key takeaways
- Start early - Begin exploring remortgage options 6 months before your deal ends to avoid being switched to your lender's higher SVR (currently averaging 7.99%).
- Compare costs carefully - Factor in all fees and early repayment charges when considering switching, as these could outweigh potential savings.
- Product transfer vs. remortgage - Staying with your current lender (product transfer) is usually simpler but switching lenders might offer better deals if the savings outweigh the hassle.
- Timing matters - The best time to remortgage is typically when your current deal ends, but other situations like significant interest rate drops or improved financial circumstances might justify an early switch.
When is the best time for you to remortgage? Well, the answer depends on your situation, but you can remortgage whenever you like.
Remortgaging is usually done to get a better deal, whether that’s lower monthly payments, a more flexible plan, or both. You might also want to remortgage to free up some extra cash by releasing equity you’ve built up in your property.
We’ll take a look at when remortgaging is most beneficial and when might be the best time for you to remortgage.
What is remortgaging?
Remortgaging can sound daunting, but it’s actually very simple. Remortgaging is when you switch your mortgage to a new one.
This could be with the same lender or switching to a new one. If you’re staying with the same lender, it is also referred to as a “product transfer”.
Remortgaging is very common. You should be looking to remortgage at the end of your current deal. But keep in mind that you don’t need to wait until your current deal expires, you can start the process earlier to ensure a smooth switch and avoid being put on your lender’s standard variable rate (SVR).
More on remortgaging: A helpful guide to remortgaging
When should I start to think about remortgaging?
If you’re coming to the end of a fixed-rate mortgage (most common type), then it’s a great time to start thinking about remortgaging. Although interest rates might not be as low as when you began your current deal, which could have been 1% to 2%, you’ll still want to get the best deal for 2025 rates.
It is expected that 1.8 million fixed-rate mortgages are due for renewal in 2025, according to UK Finance.
If you don’t remortgage before your deal ends, you’ll automatically be switched to your lender’s SVR, which at the time of writing is averaging at 7.99%. The current average for 5-year fixed-rate deals is 4.73%, so choosing to not remortgage could mean you pay much more interest than you need to.
Check out our full guide to mortgages here.
It’s best to start thinking about remortgaging about 6 months before your deal ends. This means looking at what’s available and speaking to a mortgage advisor, allowing you plenty of time in advance to plan and avoid going on your lender’s SVR.
Look out for early repayment charges
Thinking about remortgaging before your current deal ends? Well, check for any early repayment charges you could owe your lender. Most lenders will charge you for breaking your mortgage deal early.
Saving by switching mortgage sounds tempting, but sometimes the charges or fees you incur might outweigh your potential savings. Each lender will charge differently, so it’s important to talk to your lender before taking any action.
"My advice to clients is that the best time to consider re-mortgaging is a few months before their current deal ends—ideally 3 to 6 months out. This allows time to explore better interest rates, avoid moving onto a lender’s standard variable rate, and make the most of favourable market conditions."
Sam Strong - Head of Legal at Eden Conveyancing
When is the best time to remortgage?
There are plenty of good times to remortgage, if you’re in any of the following situations, it might be time to consider remortgaging:
1. Your current mortgage deal is about to end
If your deal is ending this year, it’s a great time to start looking at remortgaging. You won’t be charged any early repayment fees, you’ll avoid going onto your lender’s SVR, and you might be able to get a better deal.
2. You need a cash injection
Perhaps you’re planning on making home improvements, a big purchase, or want to consolidate other loans. Remortgaging can allow you to release some of the equity (money) in your home (using the amount you already own) to secure borrowing.
3. You’re panicking on a variable rate deal
A variable rate deal fluctuates with interest rates, the rate you pay is not fixed. Years ago in a more stable market, this may have been a stronger option, but when markets are a little more prone to change (like now), the security of a fixed-rate mortgage could go a long way. Before deciding to do this, keep in mind early repayment charges and other fees.
4. Your home is worth more now
Home values change over time. If your home is worth considerably more now than when you took out your mortgage you might be able to get a better rate. A higher-value home means your equity has increased, and your loan to value has likely decreased.
This ratio (loan to value or LTV) is simply the amount you owe divided by what your home is worth. Lower LTV ratios typically qualify for better interest rates and deals.
5. You can get a better rate elsewhere
If you’re in this situation it can be very tempting to pack up and switch lenders. But you’ll need to consider early repayment charges here. If your early repayment charge and remortgage fees outweigh the monthly savings, then it would be smarter to stay on your current deal until it expires.
When shouldn’t I remortgage?
Just like there is a time and a place to remortgage, there is also a time not to remortgage. If you’re in any of these situations, it might be best to stay put on your current deal:
1. You’re already on a good deal
Already on good rates, have flexibility, and the mortgage type you want? Why move? Although remortgaging could promise savings, your existing deal could be optimal.
Despite this, it’s always a good idea to keep an eye on the market to see what deals you could get. It might not be right now, but it could be in 6 months or a year.
2. You face high fees or penalties
If you’re unhappy with your current mortgage because of high fees or inflexibility, it’s natural to want to leave it.
But if your lender is going to charge you high fees to leave your current deal, it might be best to try and see it out rather than switch which could cost you more over time.
3. The value of your home has dropped
Earlier we spoke about what to do if your home value has increased. Well, unsurprisingly it's the opposite if it has decreased.
A lower property value will mean a higher LTV. A higher LTV will mean less favourable mortgage rates and deals that will almost definitely be higher than what you’re currently paying.
If this is you, stay put on your current deal until it expires.
4. Your mortgage debt is low
If you only have £50,000 or less remaining on your mortgage, remortgage fees might outweigh any savings you could make at a lower rate. But it’s always worth checking with a broker or advisor if you’re unsure.
5. Your credit history has worsened
If your income has dropped or you have experienced some financial difficulty since you took out your last mortgage, the chances of getting a better mortgage deal will likely drop.
The best thing to do in this situation is to try to build that score back up, keep up with your credit and loan payments, or talk to a financial advisor.
How soon can I remortgage before my fixed rate ends?
In theory, you can remortgage whenever you want, although most lenders won’t let you if you’re still in the first 6 months of your deal.
Most people wait until their current deal ends, or when their mortgage might stop being the best deal. Typically, lenders allow you to secure a new mortgage deal 3-6 months before your current one ends, giving you time to shop around for the best rates without incurring early exit fees.
Remortgaging before the end of your agreed deal will mean you’re remortgaging early. You’ll likely face early repayment charges which could be quite hefty.
What is early remortgaging?
Early remortgaging simply means remortgaging before your current mortgage deal ends.
You might consider this option if interest rates drop significantly, when you need to access equity, or when your financial situation improves.
While an early remortgage can potentially save you money in the long run, it's important to factor in any fees and early repayment charges from your current lender.
How does remortgaging work?
Here’s a quick breakdown of what remortgaging involves if you’re switching lenders. If you’re staying with the same one, the process will be more streamlined:
1. Notification and prep
Your current lender will notify you when your deal is ending. This is your cue to start looking at new options. Request a redemption statement to know exactly how much you still owe.
2. Finding the Best Deal
Consider using a mortgage broker for expert advice and access to exclusive deals. Compare different options including fixed-rate, variable, and interest-only mortgages to find what suits your needs.
3. Application and Approval
Prepare your financial documents and apply for your chosen mortgage. The lender will conduct affordability checks and, if approved, send you an offer letter valid for typically 6 months.
4. Legal Process
If switching lenders, you'll need a conveyancer to handle the legal aspects. They'll conduct necessary checks, review documents, and manage the transition from your old mortgage to the new one.
5. Completion
Once everything is approved, your conveyancer will arrange for your new lender to pay off your old mortgage. They'll then register your new mortgage with the Land Registry, completing the process.
Should you remortgage with your existing lender or switch to a new lender?
The answer is pretty simple, where can you get the best deal for you? It’s definitely easier to switch mortgages with your current lender (product transfer). And if you can get a deal you want, stick with them.
But if you can save or get more flexibility elsewhere, then the time and cost effort might be worth the bigger switch.
If you’re in any doubt, speak to a mortgage broker for expert help. Many offer an initial consultation free of charge, have a look at what’s available.
When to remortgage FAQs
How long does it take to remortgage?
Typically, it takes around 4 to 8 weeks to remortgage. However, we can’t guarantee this time, each case is unique so it could take longer or be completed quicker.
The best thing is to prepare, get documents ready, research deals, and consider whether you’re likely to switch lenders as early as you can.
It's worth noting that changing lenders typically takes longer than staying with your current one. Your new lender will require the same comprehensive documentation you provided when first purchasing your home, as you'll essentially be a new customer bringing a new property into their portfolio.
Should I remortgage to change from an interest-only mortgage to repayment?
The good news is that most lenders will allow you to change from an interest-only to a repayment without a remortgage.
If you want to go the other way, repayment to interest-only, you might find it a little more difficult.
Talk to your lender if you’re looking to do either of the above.
How often can I remortgage?
In theory you can remortgage as often as you’d like. Although remortgaging too often will likely incur heavy fees.
The most cost-effective approach would be to remortgage when your current deal ends to avoid charges.
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