Diploma for Financial Advisers
Diploma in Accounting
Member of London Institute of Banking and Finance

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Remortgaging can be a smart move for many homeowners, but the timing of when to apply for a remortgage is crucial. Here’s a quick guide to help you understand the best time to take action.

1. 6 Months Before Your Fixed Rate Ends

If you’re on a fixed-rate mortgage, it’s a good idea to start planning around six months before your deal ends. Many lenders allow you to secure a new mortgage rate in advance. This way, you’ll be ready to switch as soon as your current deal finishes, avoiding a jump to the lender’s often higher Standard Variable Rate (SVR).

2. When You Want Better Rates

Interest rates change over time. If mortgage rates have dropped significantly since you first secured your deal, you may be able to save money. Even if you’re in the middle of your mortgage term, you can remortgage early. However, be aware of any early repayment charges, which could offset the benefits.

3. If Your Property Has Increased in Value

A higher property value may mean you can get a better loan-to-value (LTV) ratio, which often leads to lower interest rates. If your home’s worth has risen, it’s worth checking if a remortgage could save you money.

4. When You Need to Borrow More

If you want to release equity from your home—for renovations or to cover other large expenses—a remortgage could provide you with extra funds. Just remember, borrowing more increases your overall debt and could change your monthly payments.

5. When Your Financial Situation Changes

Life changes such as a new job, a change in income, or other significant financial events could make a remortgage beneficial. It can help you adjust your payments to better fit your budget or reduce your interest costs if your credit score has improved.

Key Takeaway

Knowing when to apply for remortgage depends on your current deal, the market rates, and your financial goals. Always compare deals carefully and consider speaking to a financial expert to ensure you’re making the right decision. Remember, timing is everything when it comes to remortgaging!

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