Remortgaging can be an important part of managing your mortgage over the long term. Many homeowners take out a fixed, tracker or discounted mortgage deal for a set period, but once that period comes to an end, the mortgage may move onto the lender’s standard variable rate. This can sometimes mean a change in monthly repayments, so it is sensible to review your options before your current deal finishes.
Whether you want to look for a new rate, reduce monthly payments, borrow more, change your mortgage term or simply check that your existing deal still suits your circumstances, remortgaging gives you the opportunity to reassess your position. By speaking to an adviser early, you can understand the options available and avoid rushing into a decision at the last minute.
At Advisor Mortgage, homeowners can access guidance on remortgaging, capital raising, residential mortgage options and wider financial planning support. This can be especially useful if your circumstances have changed since you first took out your mortgage.
What Is Remortgaging?
Remortgaging usually means switching your existing mortgage to a new deal. This may be with your current lender or with a different lender. The aim is often to secure a more suitable mortgage product, review monthly repayments, avoid moving onto a standard variable rate, or adjust the mortgage to better suit your current needs.
Some people remortgage because their current fixed-rate deal is ending. Others may want to raise additional borrowing for home improvements, consolidate other debts, review their mortgage after a change in income, or move from one type of mortgage product to another.
It is important to remember that remortgaging is not just about finding the lowest interest rate. Fees, early repayment charges, affordability checks, property value, loan-to-value, mortgage term and future plans all need to be considered before deciding which option is suitable.
When Should You Review Your Mortgage Deal?
As a general guide, it is sensible to start reviewing your mortgage around six months before your current deal ends. This gives you time to look at available products, check your current lender’s options, compare the wider market and prepare any documents that may be needed.
Leaving it too late can limit your choices and may increase the risk of automatically moving onto your lender’s standard variable rate. Starting early gives you more breathing room and allows an adviser to check whether a remortgage, product transfer, further advance or another option may be more appropriate.
If your current mortgage deal is due to finish soon, this is one of the clearest signs that it is time to seek advice. Even if you decide not to switch immediately, reviewing your options early can help you understand what may happen next.
Why You Should Avoid Waiting Until the Last Minute
Mortgage applications can take time. Lenders may need to assess your income, outgoings, credit history, property value and overall affordability. If you are self-employed, a company director, a contractor or have more complex income, the process may require additional evidence.
Waiting until your deal has almost ended can create unnecessary pressure. You may have less time to compare products, less flexibility if there are delays, and less opportunity to resolve any issues that come up during the application.
By reviewing your mortgage early, you can make a more informed decision and reduce the chance of being forced into a rushed choice. A planned review also gives you time to understand any fees, early repayment charges or changes to your monthly payments before committing.
Remortgaging Before Your Fixed Rate Ends
It may be possible to arrange a new mortgage deal before your current fixed rate ends, but you need to check the terms of your existing mortgage carefully. Some mortgages include early repayment charges if you leave the deal before the agreed period finishes.
An early repayment charge can make switching less attractive, even if a new rate appears better at first glance. This is why it is important to consider the full cost of remortgaging, not just the monthly payment or headline interest rate.
In some cases, it may be better to secure a new deal in advance but arrange for it to start when the current deal ends. In other cases, staying with your current lender through a product transfer may be worth comparing against a full remortgage.
Product Transfer vs Remortgage
A product transfer usually means switching to a new mortgage product with your existing lender. A remortgage often means moving to a different lender, although the term is sometimes used more generally when reviewing mortgage options.
A product transfer can sometimes be quicker and involve fewer checks, because you are staying with the same lender. However, it may not always offer the most suitable option when compared with the wider market.
A remortgage with a new lender may give access to a broader range of products, but it can involve more checks, valuation work and legal steps. A mortgage adviser can help compare both routes and explain which may be better suited to your circumstances.
Reasons to Review Your Mortgage Deal
The end of a fixed-rate period is one of the most common reasons to review a mortgage, but it is not the only one. Your mortgage should be looked at when your financial situation, property plans or borrowing needs change.
Your Current Deal Is Ending
If your fixed, tracker or discounted deal is coming to an end, it is a good time to compare your options. This helps you avoid moving automatically onto a rate that may not be suitable for your current circumstances.
Your Property Value Has Changed
If your home has increased in value or you have reduced your mortgage balance, your loan-to-value may have improved. This could affect the mortgage products available to you.
You Want to Borrow More
Some homeowners review their mortgage because they want to raise additional funds for home improvements, repairs or other planned costs. Advisor Mortgage also discusses capital raising as part of its mortgage advice services, but this should always be considered carefully because increasing borrowing may increase the total amount repaid.
Your Income or Employment Has Changed
A new job, change in working hours, self-employment, maternity leave, retirement planning or reduced income can all affect mortgage options. Reviewing your deal early gives time to understand how lenders may assess your position.
You Are Planning to Move Home
If you are thinking about moving, you may need to check whether your existing mortgage is portable or whether a new mortgage is required. Home movers may benefit from advice before committing to a new property purchase.
You can also read more about related home buying topics in the Advisor Mortgage blog, including guidance for first-time buyers and other mortgage situations.
Remortgaging for Landlords
Landlords may also need to review mortgage arrangements regularly. Buy-to-let mortgage products, rental income requirements, property values and portfolio structures can all change over time.
If you own a rental property, reviewing your mortgage before the current deal ends can help you understand whether your existing arrangement still works. This can be especially important for landlords with more than one property, where lenders may take a broader view of the portfolio.
For further reading, see Buy-to-Let Mortgages Explained for New and Existing Landlords and What Portfolio Landlords Need to Know About Mortgage Planning.
What Documents Might You Need?
When reviewing a remortgage, it can help to have key documents ready. These may include proof of income, bank statements, details of your current mortgage, identification, information about existing debts and details of regular household outgoings.
If you are self-employed or run a limited company, lenders may ask for tax calculations, tax year overviews, business accounts or accountant details. The exact requirements will depend on the lender and your circumstances.
Preparing documents early can help avoid delays and make the process smoother if you decide to proceed with a remortgage application.
Why Mortgage Advice Can Be Helpful
Remortgaging can seem straightforward, but there are several factors to weigh up. The cheapest-looking rate is not always the most suitable option once arrangement fees, valuation fees, legal costs, early repayment charges and long-term plans are considered.
A mortgage adviser can help you compare options, understand lender criteria, check affordability and decide whether a remortgage is the right route. They can also explain alternatives such as a product transfer, further advance or secured loan where relevant.
This can be particularly useful if your circumstances are not straightforward, such as being self-employed, having credit issues, owning rental property, looking to borrow more, or planning future changes.
Final Thoughts
The best time to review your mortgage deal is usually before your current product ends, ideally around six months in advance. This gives you time to compare options properly, understand any costs and avoid being rushed into a decision.
Remortgaging can be useful for reviewing monthly payments, securing a new deal, borrowing more, adjusting your mortgage term or checking whether your current arrangement still suits your needs. However, the right choice depends on your individual circumstances, so it is important to seek professional advice before making changes.
If your mortgage deal is coming to an end, or your circumstances have changed, Advisor Mortgage can help you review your options and understand the most suitable route for your situation.
Your home may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it. Think carefully before securing other debts against your home.