Remortgaging is a significant financial decision that can save you money, provide peace of mind, and help you better manage your mortgage in a changing market. But one of the most common questions homeowners ask is: “When is the best time to remortgage?” In this blog, we’ll break down the key considerations, timing strategies, and expert tips to help you make the most informed decision.
Understanding Remortgaging
Remortgaging simply means switching your existing mortgage to a new deal, either with your current lender or a different one. Homeowners typically remortgage to secure a better interest rate, reduce monthly payments, release equity, or adjust the mortgage term. The timing of your remortgage can have a big impact on the deals available to you and your overall financial health.
The Ideal Window: 3 to 6 Months Before Your Fixed Rate Ends
According to mortgage experts, the best time to start thinking about remortgaging is between three to six months before your current fixed-rate mortgage comes to an end. Why this window? Most lenders allow you to secure a new deal up to six months in advance. This gives you plenty of time to review your options, gather necessary documents, and lock in a rate before your current deal expires.
Key Benefits of Early Action:
- Avoiding the Standard Variable Rate (SVR): When your fixed rate ends, you’re usually moved onto your lender’s SVR, which is often higher and more volatile. By remortgaging early, you can avoid this costly transition.
- Rate Security: If you secure a new rate early and interest rates rise before your new deal starts, you’re protected—you’ll still get the lower rate you locked in.
- Flexibility if Rates Drop: If rates fall after you’ve secured a new deal, many brokers can help you switch to a better rate before your new mortgage begins, ensuring you don’t miss out on savings.
The Role of a Mortgage Broker
One of the most valuable pieces of advice from the experts is to use a mortgage broker. Here’s why:
- Market Monitoring: A good broker will keep an eye on the market for you, tracking rate changes and alerting you to better deals. Lenders, on the other hand, won’t proactively tell you if a better rate becomes available.
- Personalised Advice: Brokers can assess your unique situation, recommend the most suitable products, and handle the paperwork, making the process smoother and less stressful.
- Access to Exclusive Deals: Some mortgage deals are only available through brokers, giving you access to a wider range of options.
Real-World Examples:
We have many example where clients were able to move onto a new, better deal before their new mortgage even started. This kind of proactive management is only possible when you have someone monitoring the market on your behalf.
Why Timing Matters in a Volatile Market
Over the past 6 to 12 months, interest rates have fluctuated significantly. This volatility makes it even more important to keep an eye on the market and act at the right time. If you wait until the last minute, you might miss out on favourable rates or face delays that push you onto the SVR.
Tips for Navigating a Changing Market:
- Start Early: Begin researching and speaking to an advisor at least six months before your fixed rate ends.
- Stay Informed: Even after you’ve secured a new deal, keep in touch with your broker in case better rates become available.
- Be Prepared: Have your financial documents ready and be responsive to your broker’s requests to avoid delays.
What If You Go Direct to a Lender?
If you choose to go directly to a lender rather than using a mortgage advisor, you may miss out on some of the benefits mentioned above. Lenders typically won’t notify you if rates drop or if a better deal becomes available. You’ll need to be proactive in monitoring the market yourself, which can be time-consuming and stressful.
Final Thoughts: Be Proactive and Stay Prepared
Remortgaging doesn’t have to be daunting. By starting the process three to six months before your fixed rate ends, working with a knowledgeable mortgage broker, and staying informed about market trends, you can secure the most suitable deal for your circumstances.
Key Takeaways:
- The best time to start remortgaging is 3–6 months before your fixed rate ends.
- Using a mortgage adviser can help you monitor the market and access better deals.
- Early action protects you from rate hikes and gives you flexibility if rates fall.
- Stay in touch with your broker and be prepared with your documents.
If you have questions or want personalised advice, don’t hesitate to reach out to a mortgage professional. Being proactive now can save you money and stress in the long run.
Need help with your remortgage?
Contact us today to discuss your options and ensure you’re ready when your current deal comes to an end.
Important Information
- YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
- This blog is for general information purposes only and should not be considered personal financial advice.