When is the best time to remortgage in 2025?

When is the best time for you to remortgage? Well, the answer depends on your situation, but you can remortgage whenever you like.

The best time to remortgage is typically 3-6 months before your current deal ends.

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.

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).

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.

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.

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.

There are plenty of good times to remortgage, if you’re in any of the following situations, it might be time to consider remortgaging:

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.

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.

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.

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.

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.

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:

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.

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.

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.

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.

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.

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.

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.

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:

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.

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.

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.

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.

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.

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.