Wojciech
Diploma for Financial Advisers
Diploma in Accounting
Member of London Institute of Banking and Finance
If you’re wondering how long in advance should you remortgage, the answer can significantly impact your finances. To get the best deal, you should start the remortgaging process about 3 to 6 months before your current mortgage deal ends. This gives you plenty of time to compare options, secure a new rate, and avoid paying your lender’s standard variable rate (SVR), which is often higher.
Why Start Early?
Starting early means you won’t feel rushed to make a decision. Mortgage lenders can take several weeks or even months to approve a new deal. By acting in advance, you ensure your new mortgage starts seamlessly as your old one ends, avoiding any unnecessary costs or stress.
Key Steps in the Remortgaging Process
- Check Your Current Mortgage End Date: Look at your mortgage paperwork or ask your lender when your fixed rate or discount period ends.
- Review Your Finances: Ensure you know your outstanding balance and if you’ll face any early repayment charges.
- Shop Around for Deals: Use comparison tools or speak to a mortgage broker to find the best interest rates and terms for your needs.
- Apply for Your New Mortgage: Once you’ve chosen the right deal, submit your application. Lenders will perform checks, so having your documents ready will speed up the process.
What Happens If You Wait Too Long?
If you don’t act in time, you’ll likely be moved to your lender’s SVR, which can cost hundreds of pounds more each month compared to a fixed or discounted rate. Preparing in advance protects you from these higher costs.
Final Thoughts
The ideal time to start planning your remortgage is six months before your current deal ends, giving you a buffer to find the best offer and complete the process smoothly. By starting early, you can secure a better deal and potentially save thousands over the life of your mortgage.
Remember, knowing how long in advance should you remortgage is key to staying on top of your finances and avoiding unnecessary expenses.
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