Why Remortgage?
Remortgaging means switching your mortgage to a new deal, either with your current lender (product transfer) or a different lender. Most people remortgage to get a better interest rate and reduce their monthly payments.
When Your Fixed Rate Ends
The most common reason to remortgage is when your fixed rate deal ends. If you don't take action, you'll be moved onto your lender's Standard Variable Rate (SVR), which is almost always higher.
Example: If your fixed rate is 4% and your lender's SVR is 7%, on a £200,000 mortgage you'd pay an extra £350 per month by not remortgaging. That's £4,200 per year wasted!
Start Early - 6 Months Before
Most lenders allow you to apply for a new mortgage up to 6 months before your current deal ends. This lets you lock in a good rate early while still benefiting from your current deal until it expires.
Mark your calendar 6 months before your deal ends. Set a reminder so you don't forget - it's the most expensive mistake homeowners make!
Other Reasons to Remortgage
There are several other situations where remortgaging makes sense.
Consider remortgaging if:
- Your property has increased in value (lower LTV = better rates)
- Your credit score has improved significantly
- You want to release equity for home improvements
- You want to consolidate debts
- Your circumstances have changed (income increased, etc.)
- Interest rates have dropped since you got your mortgage
Early Repayment Charges
If you're still within your fixed rate period, you may face Early Repayment Charges (ERCs) for leaving early. These can be 1-5% of your mortgage balance, so you need to calculate whether switching still makes financial sense.
Don't assume you're stuck until your deal ends. Sometimes paying an ERC is still cheaper than staying on a high rate. We can calculate this for you.
Product Transfer vs Remortgage
A product transfer is when you switch to a new deal with your existing lender. It's usually quicker and involves less paperwork, but you might get a better rate by switching to a different lender. We check both options for you.