When Should I Sort Out My Remortgage?

Couple in the kitchen discussing their remortgage

Deciding when to remortgage your home is a significant financial decision that can impact your budget, savings, and financial goals. Understanding the timing and considerations involved in remortgaging can guide you in making a well-informed decision.

This article delves into key factors to consider when deciding to remortgage.

Understanding Remortgage

A remortgage involves switching your mortgage to a new deal, either with your current lender or a different one. This might be done to save money by securing a lower interest rate, to borrow more money against your home, or to adjust the terms of your mortgage.

  1. Before Your Current Deal Expires

The ideal time to start considering a remortgage is a few months before your current mortgage deal is set to expire. Most fixed-rate and tracker mortgages last between two and five years. At the end of the initial benefit period, lenders usually transfer you onto their Standard Variable Rate (SVR), which is often higher than your initial rate.

Starting to review your remortgage options around six months before your current deal expires can save you from paying a higher SVR and ensure a seamless transition to the new mortgage.

  1. Interest Rate Changes

If interest rates are predicted to rise, locking in a remortgage deal before the hike can save you money in the long run. Conversely, if rates are dropping it could be worth waiting before applying for a remortgage, sometimes your mortgage advisor will also be able too secure a rate for you whilst then switching to any rate reductions during the process. However, its important to remember that predicting interest rates can be tricky, and it’s advisable to consult with a mortgage advisor.

  1. Changes in Financial Circumstances

Significant changes in your financial situation, such as a higher income or receiving a large sum of money, might prompt you to remortgage. You may want to find a mortgage with more favourable terms or reduce the term of your mortgage to pay it off faster.

On the other hand, if your financial situation has worsened, remortgaging may help you find a more affordable deal, potentially preventing financial strain or default.

  1. Home Value Changes

If your home has significantly increased in value, you may find yourself

in a lower loan-to-value (LTV) band, potentially qualifying for lower interest rates. Remortgaging in this scenario can help you capitalise on your home’s increased equity, offering better borrowing terms or the opportunity to release some cash from your property.

  1. Debt Consolidation

Some homeowners consider remortgaging to consolidate debts. If you have accumulated debts with high interest rates, it may be beneficial to remortgage and use the additional borrowing to pay off these debts. However, this should be approached with caution, as it means securing your debts against your home, which could be at risk if you fail to keep up with repayments.

  1. Personal Life Changes

Life events like expanding your family, getting married, or changing careers can impact your mortgage needs. A remortgage can adjust your mortgage to better suit your new lifestyle and financial situation.

  1. Market Trends and Opportunities

Sometimes, the market offers opportunities that are too good to pass up, such as exceptionally low interest rates or favourable terms. Keeping an eye on market trends can help you identify the best time to remortgage.

  1. Releasing Equity for Home Improvements

If you’re planning significant home improvements, remortgaging can provide the funds needed for these projects. By increasing your mortgage, you can release equity to finance renovations, which in turn could increase your property’s value.

  1. Avoid Early Repayment Charges (ERC)

If your current mortgage has early repayment charges (ERCs), it’s crucial to time your remortgage to avoid these penalties. Plan to start the remortgage process around four to six months before the end of the ERC period.

  1. Credit Score and Financial Health

Before remortgaging, ensure your credit score is in good shape. A better credit score can give you access to more competitive mortgage deals. Also, assess your overall financial health to ensure you can comfortably afford the new mortgage terms.

Preparing for Remortgage

  • Review Your Finances: Assess your current financial situation, including income, debts, expenses, and savings.
  • Check Your Credit Score: Resolve any credit issues and improve your score if necessary.
  • Gather Necessary Documents: Prepare documents like proof of income, bank statements, and identification.
  • Research Market Rates: Stay informed about current mortgage rates and products.
  • Consult a Mortgage Advisor: A professional can provide tailored advice, access to the whole of the mortgage market (including special deals) and help navigating complex scenarios.


Timing a remortgage requires balancing numerous factors, including your personal financial situation, market conditions, and your property’s value.

Start by reviewing your current mortgage deal, monitoring interest rates, and evaluating any changes in your personal circumstances. Remember that the best time to remortgage is unique to each homeowner, depending on their goals, financial health, and market conditions.

By planning ahead, keeping informed, and seeking professional advice when needed, you can make a well-timed decision that optimises your financial benefits and aligns with your long-term financial strategy. Remortgaging can be a powerful tool in managing your finances, but it requires careful consideration and timing to make the most of its potential benefits.

Final Tips

  • Stay Proactive: Don’t wait for your lender to contact you. Be proactive in researching and initiating the remortgage process.
  • Consider Different Lenders: Don’t limit yourself to your current lender. Explore options with other lenders to find the best deal.
  • Understand the Costs: Be aware of any fees associated with remortgaging, such as arrangement fees, valuation fees, and legal fees.
  • Plan for the Future: Consider your long-term financial goals and how your remortgage fits into these plans.
  • Seek Independent Advice: A financial advisor or independent mortgage broker can offer impartial advice tailored to your specific circumstances.

In conclusion, the right time to sort out your remortgage is when it aligns with your financial goals, market conditions, and personal circumstances. By understanding these factors and preparing accordingly, you can navigate the remortgage process effectively, ensuring it serves your financial well-being both now and in the future.

If you need help with a remortgage application and protection products available, contact one of our friendly team who would be happy to have a chat and help guide you through it all.


Leave a Reply

Your email address will not be published. Required fields are marked *