When Should You Remortgage? 7 Signs It’s Time to Switch

Remortgaging means moving your mortgage to a new deal, either with your current lender or a new one. Done at the right time it can save hundreds of pounds a month. Run your numbers in the remortgage calculator as you read.

1. Your deal ends within 6 months

When a fixed or tracker deal ends you usually roll onto the standard variable rate (SVR), often 2–4 points higher. Most lenders let you lock in a new rate up to six months early.

2. You are already on the SVR

If you have slipped onto the SVR, there is usually no early repayment charge to leave – switch as soon as you can.

3. Your loan-to-value has dropped

Paying down the loan and rising house prices can move you into a lower LTV band (for example from 85% to 75%), which unlocks cheaper rates.

4. Rates have fallen

If market rates are well below your current deal, compare the saving with your early repayment charge (ERC). Sometimes paying an ERC still works out cheaper.

5. You want to borrow more

Home improvements or consolidating debts can be done with a further advance or remortgage – but remember you pay interest over a long term.

6. Your income or credit has improved

A better credit score or higher income can qualify you for lenders’ best deals.

7. You want flexibility

Switching to a deal with offset, larger overpayment allowances or no ERCs may suit a changing life.

Don’t forget the fees

Add up arrangement, valuation and legal fees. A low rate with a big fee can cost more than a slightly higher rate with no fee, especially on balances under about £150,000. The calculator shows your break-even point in months.