When’s the Best Time to Remortgage?

While most homeowners have a mortgage, many don’t realise that they could save money by remortgaging.

Some mortgage interest rates have fallen below 1% in recent weeks and new mortgage products and deals are at some of the lowest rates we have ever seen.

Martin Lewis from Money Saving Expert is urging every homeowner with a mortgage to check their rates to ensure they are on the best mortgage deal possible. This particularly applies to individuals on Standard Variable Rate (SVR). Experian estimates that almost half of homeowners are paying too much for their mortgage by being on SVR.

As an existing client of Key Solutions, we are here to look after you for the lifetime of your needs. If you are on a fixed rate we will proactively get in touch with you between 4 and 6 months before the end date to ensure that we complete your remortgage on your behalf. If you have not spoken with us and are on a variable or tracker mortgage please do reach out as we are here to help ensure you have the best mortgage deal for your circumstances.

What is remortgaging?

This is when you move from one mortgage product or deal to a different one without selling your home, either with the same or a different lender.

Why would I remortgage?

The main reason people remortgage is to save money on their monthly mortgage repayments by securing a new deal, often with a lower interest rate.

However, a remortgage can also be used to raise additional funds secured against your property as a very cost-effective form of borrowing. Typical uses of the additional funds released from a remortgage include:

  1. Making improvements to your home
  2. Paying off loans and credit cards
  3. Financing a large one-off purchase such as a wedding or new car
  4. Raising a deposit to purchase an additional property

Many individuals choose to stick with their same lender when it’s time to pick a new mortgage product but this is often not the best thing.

Current house prices have risen by 9.5% in the last year and a further 1.3% since May according to Halifax. If your property has benefited from an increase in value and therefore increased equity (the difference between your mortgage loan amount and the value of your property) your Loan to Value (LTV) percentage could be lower than you think.

The lower your LTV the better interest rates you can get with a lender, therefore you could potentially make significant savings by changing product or lender by remortgaging.

Are there things that might mean I can’t remortgage right now?

Circumstances are going to differ from person to person, and it is always important to discuss things with us as there are some general things to consider before remortgaging:

  • If your current lender has locked you in with substantial early repayment charges or exit fees, these may outweigh the savings made when remortgaging – we can consider all of this with you
  • Your financial circumstances may have changed during the period since you took out your original mortgage and you may no longer be able to obtain the level of borrowing you require.
  • There may be additional fees and charges that you will need to pay in relation to arranging a remortgage.
  • Your current mortgage might have additional benefits that you need to consider such as the ability to make flexible payments or take payment holidays.

So, how do I arrange a re-mortgage?

Just give us a call or pop us an email at enquiries@wordpress-895339-3324100.cloudwaysapps.com

As a whole of market mortgage broker it means we have access to every mortgage product on the market available through a broker and access to exclusive products and rates to help obtain you the very best mortgage for your circumstances.

Don’t worry about changing over to a new lender either, we’re here to make life easier and better for everyone so will do all the hard work for you.

We would love to hear from you if you need us!

Share this article

About Key Solutions

Here at Key Solutions we believe taking out a mortgage should be easy. Why shouldn’t it? So when people say buying a home or getting a mortgage is one of the most stressful things ever, we say, come and speak to us.

Subscribe to our Newsletter

Don’t miss out on our award-winning mortgage and insurance advice!

If you would like to quickly understand how much you could borrow for your home moving mortgage, complete our property calculator:

Related articles

The dream of homeownership in the UK can feel increasingly out of reach. Rising house...
Buying a home is an exciting and significant milestone in anyone’s life. For most, securing...
If you’re going through the process of getting a mortgage or buying a house, you...
If you’re in the process of buying a house, you may be wondering about property...
What comes first: buying a new house or selling yours first? Just like the chicken...
You might think when purchasing a new home that a house survey is an unnecessary...
Are you a homeowner aged over 55 based in the UK? If so, it is...
Securing a mortgage can be difficult and confusing at the best of times. And if...
Renovation costs should be top of mind if you are planning a house renovation. New...
Over 50 and concerned about getting a mortgage? As you get closer to retirement age,...
The mortgage process can be long and frustrating, so the last thing anyone wants is...
Your credit report is used by mortgage lenders to decide whether you’re a low-risk consideration...
After what seems like years of searching, you’ve found your dream home. It’s in an...
When it comes to buying a home, there’s more to consider than just finances. Although...
 Is now a good time to buy a house? It’s a question we often get...
Wondering if you can pay a mortgage off early? And if it is even worth...
With the huge increase in interest rates, almost daily we are being asked whether it...
Is now the best time to remortgage? Should I switch my mortgage rate now? We’re...
Stamp Duty is a major cost to budget for when it comes to purchasing your...
Everyone across the UK is facing higher living costs, but with little or no extra...
Going through a divorce or separation is stressful at the best of times, but also...
Mortgage refinancing or remortgaging is a subject we love to talk about often. We’ve written...
Buying your first home is a big step and a very exciting time in anyone’s...
Whether you are buying your first home, moving house, or looking to remortgage, you’re probably...
At a time when it seems to be increasingly difficult to purchase a property due...
You may have heard of the term ‘adverse credit’ but what actually is this? Adverse...
“How long are mortgage applications taking?”, “How long after valuation to mortgage offer” and “How...
Today we are sharing our top tips on what you can do to improve your...
Now may be the best time to remortgage and save money on your monthly mortgage...
If you are interested in understanding how to pay off your mortgage quickly then we...
Whilst circumstances are going to differ from person to person, it definitely pays to discuss...
Nobody likes to think about the worst happening to them or their family. At a...
IR35 is a bit of a head scratcher and with the new rules coming into...
While most homeowners have a mortgage, many don’t realise that they could save money by...
One of the most common questions we get asked at the moment is about getting...
There are many benefits of being mortgage free in the UK; from freeing up funds...