21st July 2020

When, how and if to remortgage

There are many reasons why you might be considering a remortgage. One of the most common reasons is to reduce monthly costs, particularly if your current deal is coming to an end it’s always a good idea to see what other deals are out there that might help to reduce your monthly outgoings.  You may also want to release equity to carry out home improvements, or perhaps the value of your property has increased significantly – so you may be eligible for much lower rates.

Your mortgage is likely to be your biggest monthly expenditure, so by shopping around for the best mortgage deal, you could save significant monthly costs. However, before you start researching other mortgage deals, there are some vital bits of information you need to know before ditching your current mortgage.

When is the best time to remortgage?

Most mortgages have a headline offer that last between 2-5 years, so if you are nearing the end of your term, it would be wise to check out the market around 5-6 months before to see if you can better the deal.  

With such low rates for long term mortgage deals, now may be a better time than ever for borrowers to remortgage.

If you’re on a fixed rate mortgage, you will need to check whether the Bank of England’s interest rate (which heavily influences lenders’ standard variable rates) has dropped since you took out your fixed rate, as you may not get a great variable rate or tracker deal elsewhere.

Things to consider when deciding to remortgage

When considering a remortgage, early repayment charges and other fees must be taken into account.

You should also look at the type of mortgage you are taking out. For example, a 2-year fixed rate may come out the cheapest, but it may have high fees that you have to pay at the end of the term.  Alternatively, a 5-year fixed rate can give you longer term security, but there is a risk that if interest rates fall during that period, you may feel that you are paying too much. 

It is best to seek advice from our mortgage specialist who will show you how much a new deal would cost and compare it with others on the market to ensure you are getting the best deal.

Where to start?

If your current mortgage deal is coming to an end, speak to your current lender to see if they can offer you a better deal for your remortgage. Once you know what your current lender is offering you, you can then compare their deal to other mortgage options.

Speak to our mortgage specialist at Matthews to help you secure a mortgage deal that’s best suited to your needs.


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