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Remortgage Tips & Timings
- Lana Hart
- 13 hours ago
- 3 min read
Remortgaging can be a smart financial move, whether you’re looking to secure a better interest rate, reduce your monthly payments, or release equity from your home. However, timing and understanding the process are key to making sure switching works in your favour.
In this guide, we’ll walk you through the best time to remortgage, how to refinance to a better rate, the costs involved, and the key benefits of switching mortgage lenders.
What Is the Best Time to Remortgage?
One of the most common questions homeowners ask is when they should remortgage. While every situation is different, there are some clear indicators that it might be the right time.
1. Before Your Fixed Rate Ends
Most lenders allow you to secure a new mortgage deal up to six months before your current fixed or discounted rate ends. This is often the ideal time, as it allows you to avoid being moved onto your lender’s Standard Variable Rate (SVR), which is usually higher and less predictable.
2. When Interest Rates Improve
If market interest rates drop or lenders introduce more competitive products, remortgaging could help you secure a lower rate and reduce your monthly payments.
3. When Your Property Value Has Increased
An increase in your property’s value can improve your loan to value (LTV) ratio. A lower LTV often unlocks better mortgage rates, making remortgaging more attractive.
4. When Your Financial Situation Changes
Improved income, reduced debt, or a stronger credit profile may make you eligible for better mortgage deals than when you first took out your loan.
How to Refinance to a Better Rate
Refinancing to a better mortgage rate isn’t just about switching providers—it’s about preparation and strategy.
Review Your Current Mortgage
Start by checking:
Your current interest rate
Whether you’re in a fixed, tracker, or variable deal
Any early repayment charges (ERCs)
Improve Your Eligibility
You may be able to access better rates by:
Reducing outstanding debt
Making sure your credit file is accurate and up to date
Saving where possible to lower your LTV
Compare the Whole Market
Looking beyond your existing lender can open the door to more competitive rates and flexible terms. Advisers at More Financial can compare deals across the market on your behalf and help identify options that are best suited to your circumstances, taking the stress and guesswork out of the process.
Secure a Deal Early
Locking in a new rate ahead of time can protect you from future rate rises, even if your new mortgage doesn’t start for several months.
Costs Involved in Remortgaging
While remortgaging can save you money, it’s important to understand the potential costs involved.
Arrangement Fees
Some mortgage deals charge a product or arrangement fee. These can vary widely and should be weighed against the interest rate savings.
Early Repayment Charges (ERCs)
If you leave your current mortgage deal early, you may face an ERC. This is often a percentage of the outstanding loan and is most common during fixed rate periods.
Valuation Fees
Your new lender may require a valuation of your property. Some lenders offer free valuations as part of their remortgage packages.
Legal Fees
Remortgaging usually involves legal work. Many lenders include free legal services, but it’s important to confirm what’s covered.
Broker or Advice Fees
When working with the advisers at More Financial, you’ll benefit from expert guidance and access to competitive mortgage deals. Any advice related costs are always discussed clearly upfront, so you know exactly what to expect.
Benefits of Switching Mortgage Lenders
Switching mortgage lenders isn’t just about chasing a lower rate—it can offer several advantages.
Lower Monthly Payments
A more competitive interest rate can significantly reduce your monthly mortgage costs.
Better Mortgage Features
New lenders may offer:
Overpayment flexibility
Payment holidays
Offset or cashback options
Reduced Long Term Interest
Even a small rate reduction can save thousands of pounds over the life of your mortgage.
Opportunity to Borrow More
Remortgaging can allow you to release equity for home improvements, debt consolidation, or other financial goals (subject to affordability and advice).
Greater Financial Certainty
Switching from a variable rate to a fixed rate can provide stability and help with budgeting, especially during periods of economic uncertainty.
Final Thoughts
Remortgaging at the right time and for the right reasons can make a real difference to your finances. By understanding when to act, how to secure a better rate, and what costs to consider, you can make an informed decision that supports your long term goals.
If you’re unsure whether now is the right time to remortgage, the advisers at More Financial are here to help. We’ll review your current mortgage, explore your options, and guide you through the process to ensure you’re getting the most from your mortgage with confidence.
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