When Should You Remortgage? A Complete Guide

Remortgaging at the right time can save you thousands of pounds. But when exactly should you start looking at new deals? In this guide, we explain the optimal timing, what to consider, and how our remortgage service can help you find the best deal.

When to start looking

The ideal time to start exploring remortgage options is 3 to 6 months before your current deal expires. Most mortgage offers are valid for 3-6 months, so you can secure a new rate well in advance without any commitment.

This approach gives you the security of a locked-in rate while leaving time for the application process, valuation, and legal work. If rates drop further before completion, your broker can often switch you to an even better deal.

Use our remortgage calculator to compare your current deal against what is available today and see how much you could save each month.

Signs it is time to remortgage

You should consider remortgaging if:

• Your fixed rate is ending — when your deal expires, you will move to your lender’s Standard Variable Rate (SVR), which is almost always significantly higher. Check today’s mortgage rates to see what you could switch to
• Rates have dropped — even a small rate reduction can save significant money over the term. A 0.5% rate drop on a £200,000 mortgage could save over £60 per month
• Your property has increased in value — a lower loan-to-value ratio unlocks access to better rates. If your home was worth £250,000 when you bought it and is now worth £300,000, your LTV has improved considerably
• You need to raise funds — remortgaging can release equity for home improvements, debt consolidation, or other purposes
• Your circumstances have changed — a new job, pay rise, or improved credit score could qualify you for better products
• You are on your lender’s SVR — there is almost never a good reason to stay on the SVR when competitive fixed and tracker rates are available

Remortgage vs product transfer

Before switching to a new lender, consider whether a product transfer with your existing lender might be simpler. Our guide to remortgaging vs product transfers explains the key differences:

• Product transfer — stay with your current lender, switch to a new rate. Usually no legal fees, no valuation, and faster processing. But limited to what your current lender offers
• Remortgage — move to a new lender for potentially better rates. Involves a valuation and legal work, but many lenders offer free legals and valuations as incentives

A whole-of-market broker like Option Finance can compare both options to find the best outcome for your situation.

What to consider before remortgaging

Before switching, check these important factors:

Early repayment charges

Most fixed-rate mortgages have early repayment charges (ERCs) that apply if you leave during the deal period. These typically range from 1% to 5% of the outstanding balance. You need to weigh any ERC against the potential savings from a new deal.

For example, if your ERC is £3,000 but switching saves you £200 per month, you would recoup the charge within 15 months — making it worthwhile if your new deal is for two years or more.

Total cost of switching

Factor in all costs associated with remortgaging:

• Arrangement fee (often £500-£1,500, or sometimes a percentage of the loan)
• Valuation fee (often free with remortgage products)
• Legal fees (often free or cashback with remortgage deals)
• Broker fee (if applicable)

Compare the total cost of switching against your monthly savings over the new deal period to ensure it makes financial sense.

Your credit score

Has your credit score changed since your last mortgage application? If you have had any late payments, missed payments, or other credit issues, this could affect the rates available to you. If your credit has deteriorated, our adverse credit team can help find suitable options.

Remaining mortgage term

Think about how long you want your new mortgage term to be. Extending the term reduces monthly payments but increases the total interest you pay. Shortening it does the opposite. Use our repayment calculator to model different term lengths and see the impact on your monthly payments and total cost.

Remortgaging when self-employed

If you are self-employed, remortgaging can be slightly more complex as lenders require proof of income through tax returns or company accounts. Our guide to remortgaging when self-employed covers the specific requirements and which lenders are most flexible.

Most lenders want to see at least two years of accounts or SA302 tax calculations, though some specialist lenders accept one year. Having your paperwork prepared in advance speeds up the process considerably.

Remortgaging with bad credit

A poor credit history does not necessarily prevent you from remortgaging. Many specialist lenders consider applicants with CCJs, defaults, or other credit issues. The key is finding the right lender for your specific situation, which is where a specialist broker adds real value.

Read our guide to remortgaging with bad credit for detailed advice on what options are available.

How we help

As whole-of-market brokers, we compare deals from 90+ lenders to find you the best remortgage rate. Our process is simple:

1. Free initial consultation — we review your current deal and circumstances
2. Market comparison — we search the whole market for the most competitive products
3. Application support — we handle the paperwork and liaise with lenders
4. Completion — we ensure a smooth switch with minimal hassle

Learn more about how our process works, or read our comprehensive ultimate UK remortgage guide for everything you need to know about remortgaging.

Get in touch for a free, no-obligation review of your remortgage options, or call us on 01332 470 400.