When Should I Remortgage?

The Most Common Time to Remortgage

The most common trigger for remortgaging is when your existing fixed-rate or tracker deal is coming to an end. Most mortgage deals in the UK last between two and five years, and once they expire, your lender will move you onto their standard variable rate (SVR). The SVR is almost always significantly higher than the rate you were paying, so remortgaging before or shortly after this switch can save you a considerable amount each month.

Ideally, you should start looking at remortgage options around six months before your current deal expires. This gives you enough time to compare rates, submit an application, and have everything in place so there is no gap where you are paying the higher SVR. Many lenders will now allow you to lock in a new rate up to six months ahead, protecting you against any rate rises in the interim.

If you have already moved onto your lender's SVR, do not worry — it is not too late. You can remortgage at any point while on the SVR without paying an early repayment charge, so it is worth acting quickly to find a better deal.

Life Events That Trigger a Remortgage

Beyond your deal simply ending, several life events may prompt you to consider remortgaging. If your property has increased substantially in value, you may now fall into a lower loan-to-value (LTV) band, which typically unlocks better interest rates. Similarly, if your income has increased or your credit score has improved, you may qualify for deals that were previously out of reach.

Other common triggers include wanting to release equity for home improvements, needing to consolidate debts, or going through a relationship change such as a separation where one partner needs to buy the other out. Each of these situations has its own considerations, but all involve assessing whether a new mortgage deal would be more suitable than your current one.

It is worth noting that some life events, such as a reduction in income or a change of employment status to self-employed, can make remortgaging harder. In these cases, it may be wise to remortgage before the change takes effect, while your circumstances are still favourable for lender affordability checks.

When Remortgaging Might Not Be the Right Move

Remortgaging is not always the best option. If you are still within a fixed-rate or introductory deal period, you will likely face early repayment charges (ERCs) for leaving early. These charges can be substantial — often between 1% and 5% of your outstanding balance — and may wipe out any savings you would gain from switching to a lower rate.

You should also be cautious if your property value has fallen since you took out your mortgage. A lower valuation could push you into a higher LTV bracket, meaning the rates available to you may not be competitive enough to justify the cost and hassle of switching. In extreme cases, negative equity can make remortgaging very difficult altogether.

Finally, if you have a very small mortgage balance remaining — say under 50,000 pounds — some lenders may not offer remortgage products, or the arrangement fees could represent a disproportionately large cost relative to your savings. In such cases, staying on your current deal or overpaying may be a better strategy.

How to Prepare for a Remortgage

Preparation is key to getting the best remortgage deal. Start by checking your current mortgage terms, including when your deal ends, any ERCs that apply, and what your lender's SVR is. This information gives you a baseline against which to compare new offers.

Next, review your credit report. You can access this for free through services like Experian, Equifax, or TransUnion. Look for any errors or old accounts that could be affecting your score, and take steps to improve it if needed — paying down credit card balances and ensuring you are on the electoral roll are two quick wins.

Gather your financial documents early, including payslips, bank statements, and details of any other debts or commitments. Having these ready will speed up the application process. Many homeowners also find it helpful to speak with a mortgage broker, who can search the whole market and identify deals you might not find on your own.