Is now a good time to remortgage?

Now may be a good time to remortgage if your current deal is ending soon, you are already on your lender’s standard variable rate, or switching could improve your position after fees.

However, timing depends on your current mortgage. If your deal is coming to an end, reviewing your options early could help you avoid moving onto your lender’s standard variable rate. If you are still tied into a deal, early repayment charges may make switching less attractive.

The better question is not just whether rates may rise or fall. It is what happens if you stay where you are, move onto your lender’s standard variable rate, or secure a new deal.

Muttuo Mortgages can help you compare your current mortgage, your lender’s options and suitable remortgage options from across the market, so you can decide whether switching now makes sense.

Start with the cost of doing nothing

The first step is to check what happens when your current mortgage deal ends.

If you do nothing, your lender will usually move you onto its standard variable rate, often called the SVR. This rate can be higher than the new fixed, tracker or product transfer options available at the time, although it may offer more flexibility because you are not always tied in for a set period.

That is why it helps to review your options before your deal ends. Even if staying with your current lender feels easier, the cost difference can be worth checking before you let your mortgage move automatically onto SVR.

What the monthly difference could look like

The example below shows how two different interest rates could affect the same mortgage balance and term. It is designed to make the potential monthly difference easier to see.

If your deal ends soon, start reviewing early

If your current mortgage deal ends in the next six months, it is usually worth reviewing your options sooner rather than later.

Starting early gives you time to compare deals, prepare documents and check whether your current lender can offer a suitable product transfer. It can also help you avoid rushing into a decision just before your deal ends.

In some cases, you may be able to secure a rate in advance and keep your options under review before completion. If rates improve before your new deal starts, there may be an opportunity to look again, depending on the lender, product and timing.

That does not mean you need to switch immediately. It simply gives you more time to compare your options properly.

If you are already on a standard variable rate

If you are already on your lender’s standard variable rate, often called an SVR, now may be a sensible time to review your options.

An SVR can sometimes be useful if you need flexibility. For example, you may be selling your property soon, paying off your mortgage, or waiting for a major change in your circumstances. However, many borrowers stay on an SVR by accident after their fixed or discounted deal ends.

That can mean paying more than necessary, especially if a suitable fixed, tracker or product transfer option is available.

Before deciding what to do, check your current monthly payment, the rate you are paying now, whether any exit charge applies and what alternative options may be available. The key question is whether switching would reduce your total cost after fees.

Even a small rate difference can matter when applied to a large mortgage balance.

If you are still in a deal, check your early repayment charge

If you are partway through a fixed, discounted or tracker mortgage deal, remortgaging may still be possible. However, you need to check whether an early repayment charge applies.

An early repayment charge is a fee for leaving your current deal before the agreed period ends. It is often calculated as a percentage of your remaining mortgage balance.

For example, if your mortgage balance is £200,000 and your early repayment charge is 3%, leaving your deal early could cost £6,000.

That charge does not automatically mean remortgaging is the wrong decision. However, the savings from a new deal need to outweigh the cost of switching.

A lower rate is only useful if the full cost is lower

A lower interest rate can look attractive, but it does not always mean the new mortgage is cheaper overall.

When comparing remortgage deals, the rate is only one part of the decision. You may also need to factor in arrangement fees, valuation fees, legal costs, broker fees where applicable, early repayment charges, cashback, incentives and whether any fees are paid upfront or added to the loan.

The mortgage term matters too. A lower monthly payment may feel helpful, but if the term is extended, you could pay more interest over the life of the mortgage.

For example, a lower-rate deal with a large arrangement fee may not be better than a slightly higher-rate deal with lower upfront costs. This is especially true if your mortgage balance is smaller or you only plan to keep the deal for a short period.

The most useful comparison is the total cost over the period you expect to hold the deal, not just the headline rate.

Your property value could change your loan-to-value ratio

Your home’s value can affect the remortgage deals available to you.

When lenders assess a remortgage, they look at your loan-to-value. This compares your mortgage balance with the value of your property.

If your home has increased in value, or if you have reduced your mortgage balance through repayments, your loan-to-value may have improved. That could help you access a wider range of remortgage options.

For example, moving from 90% loan-to-value to 80% loan-to-value may improve the deals available to you, depending on the lender, product and wider market conditions.

However, a higher estimated property value does not guarantee a better deal. The lender’s valuation may differ from your own estimate, and lenders will still assess your income, affordability, credit profile and the property itself.

Should you fix now or wait?

No one can say with certainty where mortgage rates will go next.

Mortgage pricing is influenced by several factors, including wider interest rate expectations, lender appetite, inflation, swap rates and market confidence. That means rates can change quickly, and products may not always stay available for long.

Waiting for rates to fall can work in your favour, but it can also leave you exposed if pricing changes or products are withdrawn. That is why it helps to review your options early, rather than trying to time the market perfectly.

A fixed-rate mortgage can give you payment certainty for a set period. This can be useful if you want stable monthly payments and do not want to worry about rate changes.

A tracker or variable-rate mortgage may suit borrowers who want more flexibility or believe rates could fall. However, your payments can increase if the rate being tracked goes up.

The right choice depends on your budget, risk tolerance and future plans.

Choosing your next fixed-rate period

If you decide to fix your mortgage, the next question is how long to fix it for.

A shorter fixed rate, such as two years, may appeal if you want to review your mortgage again sooner. This could suit you if you think rates may improve, your circumstances may change, or you do not want to be tied in for too long.

A five-year fixed rate may be more suitable if you want longer-term payment certainty. This can help with budgeting, especially if you find payment changes stressful or difficult to absorb.

A longer fixed rate, such as 10 years, can offer even more certainty. However, it may be less flexible if you want to move home, repay your mortgage, borrow more or switch again before the deal ends.

Before choosing a fixed period, think about whether you may move, overpay, borrow more, or need flexibility later. The best deal is not always the one with the lowest rate. It is the one that fits the way you expect to live, borrow and plan.

When now may be a good time to remortgage

Now may be a good time to remortgage if your current deal is ending soon, especially if you would otherwise move onto your lender’s standard variable rate. Starting early gives you time to compare new deals, check your current lender’s options and avoid making a rushed decision.

It may also be worth reviewing your options if your property value has increased or your mortgage balance has reduced. In that situation, your loan-to-value may have improved, which could affect the range of deals available to you.

You may also want to remortgage if your current mortgage no longer fits your plans. For example, you may want more payment certainty, a different deal length, or the option to borrow more for a specific purpose.

The key point is that remortgaging now does not always mean switching immediately. Sometimes, it simply means checking your position early enough to make a better decision.

When waiting may be the better option

Waiting may be more sensible if you are still tied into a competitive deal and leaving early would trigger a high early repayment charge. In that case, the cost of switching could outweigh the benefit of a new rate.

It may also be better to wait if your circumstances are likely to change soon. A new job, change in income, planned house move or recent credit issue could all affect your application. In some cases, giving yourself time to strengthen your position may lead to more suitable options later.

There are also situations where fees can reduce the benefit of remortgaging. If your mortgage balance is relatively small, a product with a lower rate but high arrangement fee may not offer the saving it first appears to.

The right decision comes down to the full cost, not just the timing.

Get your remortgage details ready

Before you compare remortgage options, gather the details that affect your choices.

You will usually need your current mortgage balance, interest rate, monthly payment, deal end date, standard variable rate and any early repayment charge. It also helps to have a realistic estimate of your property value, because this affects your loan-to-value.

If you want to borrow more, you should also be clear on how much you need and what the money will be used for. Lenders will assess your income, commitments, credit profile and wider circumstances before confirming what may be available.

Having these details ready makes it easier to compare staying where you are, switching products with your current lender or remortgaging to a new lender.

How Muttuo Mortgages can help you compare your options

Remortgaging is not just about finding a new rate. It is about comparing your current deal against the options available and working out which route gives you the best overall outcome.

Muttuo Mortgages can help you compare your current mortgage, your lender’s product transfer options and suitable remortgage deals from across the market. We can also help you weigh up fixed, tracker and variable options, understand the impact of fees and early repayment charges, and check whether borrowing more is affordable.

As a whole-of-market mortgage broker, Muttuo works with over 100 lenders. That means you can compare a wider range of options instead of relying only on your current lender or a single route.

Frequently asked questions about Remortgaging

Still deciding whether to remortgage now or wait? These FAQs cover the key questions homeowners often ask about timing, rates, standard variable rates, early repayment charges and choosing the right next step.

Should I remortgage now or wait?

If your current deal ends soon, it is usually worth reviewing your options now. Whether you switch depends on the full cost.

You do not need to wait until your mortgage deal has fully ended before reviewing your options. Many people start looking several months before their current deal finishes, so they have time to compare rates, prepare documents and avoid moving onto their lender’s standard variable rate.

However, reviewing your options is not the same as automatically switching. If you are still tied into a deal, early repayment charges may apply. If your current rate is competitive, waiting may be more sensible. The right choice depends on your current rate, deal end date, lender options, fees and whether a new deal would genuinely improve your position.

Is it worth remortgaging if rates are high?

It can still be worth remortgaging if your alternative is moving onto a higher standard variable rate.

Higher mortgage rates can make remortgaging feel less appealing, especially if you are coming off a much cheaper deal. However, the decision should be based on what happens if you do nothing.

If your current deal ends and your lender moves you onto its standard variable rate, your monthly payments may increase. A new fixed, tracker or product transfer deal may still be more suitable, even if rates are higher than they were a few years ago.

The goal is not always to find a cheaper rate than your old deal. Sometimes, it is to avoid a more expensive default rate and choose the most suitable option available now.

Can I remortgage before my current deal ends?

Yes, but you may need to pay an early repayment charge if you leave your current deal early.

You can usually remortgage before your current deal ends, but it may not always be cost-effective. Many fixed-rate and discounted deals include early repayment charges if you leave before the agreed period finishes.

Before switching early, you need to compare the potential savings against the cost of leaving your current deal. For example, if a new mortgage saves you money each month but the early repayment charge is several thousand pounds, the savings may not be enough to justify the move.

In some cases, it may be better to wait, switch products with your current lender, or explore another option.

Should I remortgage or take a product transfer?

A product transfer may be simpler, but a remortgage gives you the chance to compare options beyond your current lender.

A product transfer means moving to a new deal with your existing lender. It can often involve less paperwork than remortgaging to a new lender, and it may be quicker to arrange.

However, staying with your current lender means you may not see the full range of deals available across the market. A remortgage allows you to compare other lenders, which may be useful if your circumstances have changed, your loan-to-value has improved, or you want to borrow more.

The best route depends on the rate, fees, criteria, timing and how much flexibility you need.

Will remortgaging save me money?

It may save money, but only if the new deal is cheaper after fees, charges and any early repayment costs are included.

Remortgaging can reduce your monthly payments if you move from a higher rate to a lower one. It can also help you avoid your lender’s standard variable rate when your current deal ends.

However, the headline rate does not tell the full story. Arrangement fees, valuation fees, legal costs and early repayment charges can all affect the savings. You also need to consider whether fees are paid upfront or added to your mortgage, as adding fees can increase the total interest you pay.

A proper comparison should look at the total cost over the deal period, not just the monthly payment.

Can I borrow more when I remortgage?

Yes, you may be able to borrow more, but lenders will still check affordability and loan-to-value.

Some homeowners remortgage to borrow more against their property. This may be used for home improvements, debt consolidation, family support or another major expense.

However, having equity in your home does not automatically mean you can release it. Lenders will check your income, outgoings, credit profile, property value and the purpose of the borrowing.

Borrowing more can also increase your monthly repayments and the total interest paid over the mortgage term. If you are consolidating debt, it is especially important to understand the long-term cost and the risk of securing previously unsecured borrowing against your home.

Should I fix my mortgage now?

A fixed rate may suit you if you want payment certainty, but it may offer less flexibility if rates fall or your plans change

Fixing your mortgage gives you stable monthly payments for a set period. This can make budgeting easier and protect you from rate increases during the fixed term.

However, a fixed rate may not be right for everyone. If rates fall, your payments will not reduce during the fixed period. You may also face early repayment charges if you want to leave the deal early, move home, repay a large amount or switch again.

The right fixed period depends on your budget, future plans and how much flexibility you need.

What should I check before remortgaging?

Start with your current rate, mortgage balance, deal end date, property value and any early repayment charge.

Before comparing new deals, gather the details that shape your remortgage options. These include your current mortgage balance, interest rate, monthly payment, deal end date, standard variable rate and any early repayment charge.

You should also have a realistic estimate of your property value, as this affects your loan-to-value. If your property has increased in value or your mortgage balance has reduced, you may be in a stronger position than when you first took out your mortgage.

It is also worth checking your income, spending, credit profile and whether you want to borrow more. These details help determine which lenders and products may be suitable.