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When is the best time to remortgage?

When to remortgage?

We are often asked when is the best time to remortgage. The answer is easier if your current mortgage deal is coming to an end, as the answer is usually to remortgage to coincide with the end date (as long as the benefits outweigh any costs). However, if you wish to remortgage whilst on a fixed rate or on a variable rate you will need to work out when the benefits will be highest and the costs lowest (for example waiting till when your early repayment charge reduces).

When your current mortgage deal is about to end:

When your fixed rate mortgage deal ends, whether after 2 or more years, the standard variable rate you will be transferred to will usually be much higher. Changing to a new mortgage could then save you thousands. Don’t wait till the last possible moment however as mortgages can take a while to complete – contact our advisors 3 months before your rate ends.

When you are on a fixed rate:

Usually it’s best to wait till your fixed rate ends and your early repayment charges are removed, however sometimes it can still work out best to take the hit on the charges if the savings are big enough. For example a new rock bottom rate is launched by a provider, or if your home’s value has gone up a lot and you would now be in a lower loan-to-value band. You may be best off waiting till costs reduce – for example early repayment fees often reduce every 12 months after your policy starts, so if this was 5 months away it might make sense to wait. An advisor can help you work out the exact right time for you.

When you are on a standard variable rate:

If you’ve had your mortgage for a while it’s likely there are cheaper options around now that interest rates are relatively low, and so you could start the process of remortgaging today. You’ll still need to work out however whether it works out cheaper overall once valuation fees, legal fees and any exit and arrangement fees are taken into account – something an advisor can help you with.

Our friendly advisers are here to help with all of your remortgaging queries.

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0800 310 1919

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