It’s pretty common that most people don’t give remortgaging their home a second thought until something in their life prompts them to.
Could be a shift in interest rates, a letter from their lender or even a chit chat with a mate who has just switched themselves. Actually, the signs could be hidden in plain sight, and all it takes is a little research.
We will walk you through five of the most common triggers that suggest it could be worth reviewing your mortgage and explain exactly when you can remortgage in the UK.
1. Your Deal Is Ending Soon
If you’re on a fixed-rate mortgage, your deal will have an expiry date
When that time comes, your lender will likely move you to their Standard Variable Rate (SVR). These rates are usually higher and can change with little notice.
To be on the safe side, you want to start looking for a new deal about 6 months before your current fixed term is due to end. Doing so will mean you’ve got plenty of time to look at your options and assess them. You’ll be able to consider your budget, too, and get a new shiny mortgage lined up before you get sideswiped by the sneaky SVR hikes.
Think of it as renewing your energy contract or car insurance, only the numbers are a lot bigger. If your mortgage deal is ending within the next six months, it’s a strong signal to start exploring your options.
You should give it the same energy as you would when your car insurance is due to be up, or when you renew you energy contract. In this instance, though, the numbers are much higher! Current mortgage ends in 6 months? As good a signal as ever to get the remortgage train going.
2. Your Equity Has Grown
Lucky you! You may have built up more ownership of your house by paying down your mortgage or because your home has gone up in value. We call this having more equity. This could open the doors to better remortgage deals.
Let’s put it this way: lenders love a nice, low loan-to-value ratio (LTV) and will often offer a better price on their offers. The more equity you have, then the lower your LTV will be.
Get yourself online and check out recent local sale prices in your area, you might be pleasantly surprised! Your equity position may have improved and if you find that is the case, this can mean it is a great time to remortgage.
3. The Market Has Shifted
A bit of window shopping never hurt anybody. Even if your current mortgage isn’t exactly ending soon, it is still worth having a nosey at what else is out there. As we all know, interest rates inevitably rise and fall due to broader economic conditions. Sometimes, new deals might pop up out of the sand that are better than what you’re locked into.
Of course, switching mid-deal might mean paying an early repayment charge (ERC), so it’s not always worth it. But depending on the numbers, and especially if you’re on a tracker or variable rate, there could be real savings in remortgaging earlier than planned.
It’s a good habit to review your mortgage deal once a year, even if you don’t plan to make a move right away.
4. You’re Thinking About Consolidating Debt
If you’re carrying high-interest debt, such as credit cards or personal loans, some homeowners consider remortgaging to consolidate that debt into the mortgage. This can lower your monthly outgoings, as mortgage rates are usually lower than unsecured credit.
But it’s not a decision to take lightly. While consolidating can make repayments more manageable, it also secures previously unsecured debt against your home. And you could end up paying more interest overall if the term is extended.
Still, it’s one of the signs that often triggers a conversation about remortgaging, especially when monthly payments are tight and people are looking for breathing room. If this applies to you, it’s best to speak to an adviser who can walk you through the pros and cons in real terms.
5. Your Finances Have Improved
You got a raise at work? Great job!
Your credit score is now in healthy territory? Wahey!
You’ve paid down your other debts and your overall financial position is looking much shinier than when you first applied for your mortgage? Fabulous.
Lenders assess risk based on your financial snapshot. If that picture has improved, you may now qualify for a better rate or more flexible terms than you did before.
This is one of the more subtle signs, you might not even think of it as a reason to remortgage, but it can make a real difference to what you’re offered. If things are looking up financially, it’s worth checking whether your mortgage could be doing better too.
When Can You Remortgage, Technically?
The big question many homeowners ask is: “When can you remortgage?”
Technically, you can remortgage at almost any time, but whether it makes financial sense totally depends on your specific situation.
Most lenders will allow you to secure a new deal up to six months before your current one ends. If you’re mid-way through a fixed-term, you can still remortgage, but you may face early repayment charges.
Here are a few general things to consider:
✅ Check your current mortgage terms for exit fees
✅ Know how much time is left on your current deal
✅ Review your credit report before applying
✅ Get an up-to-date estimate of your home’s value
If in doubt, speak to a broker! They are ever so friendly and can do the maths for you, helping you decide whether now is the right time.
So, What’s Next?
Deciding to remortgage isn’t something you do for the sake of it. But knowing these signs can help you identify the need, and plan ahead so that you skirt around the sinkhole of getting stuck in a deal that doesn’t fit anymore.
If you’ve ticked any of the boxes above, your deal is ending, your equity’s up, rates are better, your debts are high, or your finances have improved, it could be time to start weighing your options.
No rush. Just awareness. The best remortgage decisions often come from knowing when to look, not just what to look for.
Get in touch with us if you need a hand.
