For many homeowners, the word “remortgage” only comes up when their fixed-rate deal is about to end. But there’s more to it than that.
Remortgaging is a powerful financial tool that could save you £1,000s over the life of your mortgage, or help you unlock equity for other plans.
So when should you remortgage, and why does it matter? Let’s take a look…
1. Avoiding the Standard Variable Rate (SVR)
When your fixed or tracker deal ends, your mortgage usually moves onto your lender’s SVR, often much higher than the deal you were on.
Example: Your fixed rate ends at 2.5%, and your lender’s SVR is 6.5%, that’s a big leap in monthly payments.
Tip: Review your mortgage 3–6 months before your deal ends to secure a better option in time.
2. Getting a Better Interest Rate
Even if you’re mid-deal, it might be worth checking whether:
- Rates have dropped since you took your deal
- Your property has increased in value
- You’ve repaid a significant amount of your mortgage
Sometimes, the savings outweigh early repayment charges. We’ll crunch the numbers for you.
3. Borrowing More – For the Right Reasons
You might want to raise capital for:
- Home improvements
- Debt consolidation
- Buying another property
- Helping family onto the ladder
Remortgaging can let you do this at lower rates than unsecured loans.
4. Changing Mortgage Terms
You might want to:
- Extend your term to reduce monthly payments
- Shorten the term to pay off your mortgage faster
- Switch from interest-only to repayment (or vice versa)
If you’d like to review your remortgage options, get in touch with us today.
