The 6 Month Rule
Start looking for a new remortgage deal around 6 months before your current rate ends. Most mortgage offers are valid for 3-6 months, so you can secure a competitive rate early and let it start when your current deal finishes. This approach avoids any time on your lender's expensive Standard Variable Rate (SVR).
Set a diary reminder for 6 months before your deal end date. This gives enough time to compare options, submit applications, and complete the process without rushing or risking gaps in your rate protection.
Early Repayment Charges
Before remortgaging early, check for early repayment charges (ERCs). These apply if you pay off or switch your mortgage before the agreed rate period ends. ERCs are usually a percentage of the outstanding balance - often 3-5% in the first year, reducing each year of the deal.
Calculate whether savings from a new rate outweigh any ERC you'd pay. Sometimes switching early makes financial sense, particularly if rates have fallen significantly or you're consolidating expensive debts. Our brokers can help with this calculation.
Already on SVR?
If you're already on your lender's SVR, consider remortgaging immediately. Every month on a higher rate costs you money that you won't get back. There's no ideal time to wait for - the sooner you switch to a competitive rate, the sooner you start saving.
Many people end up on SVRs through inertia or life getting in the way. Don't let past delays prevent action now. The remortgage process is straightforward and often fee-free through a broker.
Life Changes That Trigger Remortgaging
Beyond deal endings, certain life events might prompt a remortgage: needing to release equity for home improvements, wanting to consolidate debts at a lower interest rate, relationship changes requiring partner removal or addition, or changing from interest only to repayment.
These situations may involve remortgaging mid-deal and facing ERCs. Weigh the benefits against any charges to determine if now is the right time or if waiting for your deal end makes more sense.
Market Timing
While timing your deal end is within your control, trying to time the market is harder. Rates fluctuate based on economic conditions, inflation expectations, and Bank of England decisions. Waiting for rates to drop could mean they rise instead.
If you've found a deal that saves you money compared to your current rate or SVR, it's generally better to secure it than gamble on future market movements. Certainty has value, especially for budgeting.