Wondering when to remortgage? Clarity Mortgage’s Ian Smith shares some key signs that it might be time to switch, including rising rates, releasing equity, and securing better deals.
Not sure whether to stick or switch? You’re not alone; remortgaging is one of the most common things clients ask me about.
As a mortgage advisor in the UK, I speak to homeowners every week who are wondering when to remortgage, whether they should remortgage now, or how to get remortgage advice that really suits their situation. The truth is, there’s no one-size-fits-all answer — but there are some clear signs it might be time to act.
In this post, I’ll walk you through a few key reasons why people remortgage, how timing works, what to consider if your credit isn’t perfect, and how a remortgage broker (like me) can guide you through it.
Why Do People Remortgage?
There are many reasons why people remortgage, and nearly everyone will do it at some point. Some will be chasing a better rate, while others will be desperate to release their equity. So let’s look at the most common motivations:
Finding a Better Interest Rate!
The most common reason people ask for remortgage help is to save money. If your current deal is coming to an end — or you’re on your lender’s dreaded standard variable rate — it could be a great time to remortgage for a better rate. Even a slight drop in interest can result in substantial savings over time.
Releasing Equity
Whether it’s for home improvements, a deposit for a second property, or to support a loved one, many homeowners remortgage to release equity. *For instance, a client in Essex recently remortgaged to release equity for a home renovation project — a loft conversion that added real value to the home. Adding to the current home can often rekindle your passion for the property, and it also avoids extra stamp duty charges if you are considering moving.
Consolidate Debts
Rolling high-interest debts into your mortgage could lower your monthly outgoings. It’s not the right move for everyone, but with the right remortgage advice, it can bring much-needed breathing space.
Switch to a More Flexible Mortgage
Some clients want features such as the ability to make overpayments, take payment holidays, or benefit from offset savings. In these cases, switching to a more flexible mortgage makes sense.
Remortgaging After Credit Repair
If you’ve worked hard to rebuild your credit after a tough time, you may now be eligible for better deals than before. I’ve helped many clients in this situation secure new terms that reflect their new, improved financial position.
Change to Buy to Let or Let to Buy
Sometimes homeowners want to turn their current home into a rental property or purchase a new one to rent out. This is where a mortgage advisor can help navigate the options and lender requirements.
When Can You Remortgage a Property?
Many people think they need to wait until the very end of their fixed rate to remortgage — but that’s not always true.
- You don’t have to wait until your deal ends. You can start shopping around early, and in fact, most lenders allow you to secure a new deal from three to six months in advance.
- You can remortgage during a fixed rate, but check for penalties. Some deals come with early repayment charges. A remortgage broker can help you weigh up any fees against potential savings, to see if it’s still worth moving early.
- The best time to remortgage often depends on your goals, current market rates, and how long you plan to stay in the property.
*I regularly help clients assess the costs and benefits of switching early versus waiting. A quick check could save thousands in the long run.
Can You Remortgage with Bad Credit?
This is another very common question — and the good news is, yes, you can.
- It’s possible, but it takes more care. Lenders look at your credit history, but it’s not the only factor. Your income, equity, and affordability all come into play.
- Whole of market access helps. As a mortgage advisor with access to the whole of the market, I can approach a wide range of lenders, not just the high street banks, to find deals that work for you.
- Credit repair first may help. Sometimes, a few months of credit improvement can open the door to better rates. I’ll always be honest with you about whether it’s better to wait or move forward now.
*If your credit’s not perfect, don’t panic. Let’s have a chat — we can work out the best route forward.
How a Mortgage Advisor Can Help
Whether you’re feeling unsure or simply want the best outcome, working with a qualified mortgage advisor can save you time, stress, and money.
Here’s what I offer:
- Whole-of-market access. This means I’m not tied to one lender and can find you the most competitive options.
- Clear, tailored remortgage advice. No jargon, no guesswork. Honest guidance tailored to your personal goals.
- Help with paperwork and process. From application to completion, I’ll handle the details and keep things moving smoothly.
- Support when things aren’t straightforward. Whether it’s remortgaging with bad credit or looking to release equity, I’ll help you find the right path.
Many clients tell me they wish they’d called sooner — it’s never too early to ask for some help.
Remortgaging FAQs
How much does it cost to remortgage?
It depends. Some lenders offer free legals and valuations, while others charge fees. I’ll help you understand the total cost — and whether a deal with fees is still the better value.
Can I remortgage to pay off debts?
Yes, in some cases, this can work well. However, it’s essential to consider the long-term implications, as you’re spreading unsecured debts over a longer mortgage term. It’s crucial to obtain proper remortgage advice before proceeding.
What happens if I leave it too late?
If your deal ends and you haven’t lined up a new one, you’ll usually move onto your lender’s standard variable rate, which is often significantly higher. That’s why I recommend reviewing your options 3–6 months before your current deal ends.
Do I need a new valuation?
Often, yes — but many lenders include this for free as part of their remortgage package. I’ll let you know what to expect and arrange it all on your behalf.
