When Should You Remortgage? A Simple Guide

Your fixed rate is ending soon, or maybe it already has. Either way, the next move you make could save you thousands of pounds. Here's what you need to know about when to remortgage and why timing matters.

What does it mean to remortgage?

Remortgaging means switching your existing mortgage to a new deal. That can be with your current lender (called a product transfer) or with a different lender entirely.

Most people remortgage when their fixed rate is coming to an end. Others remortgage to release equity, consolidate debt, or change the type of mortgage they have.

Whatever the reason, the goal is the same: make sure you're on the right deal for your situation, not just whatever your lender automatically moves you onto. If your deal is ending, our remortgage advice covers everything from product transfers to switching lenders entirely.

When should you start the process?

The short answer: six months before your current deal ends.

That might sound early, but here's why it matters. Most lenders allow you to lock in a new rate up to six months in advance. If rates drop in the meantime, you can usually switch to the better deal. If they go up, you've already protected yourself.

Starting six months out gives you breathing room. It means you're not making a rushed decision when your deal expires, and you avoid the single worst outcome: falling onto your lender's standard variable rate.

What is the standard variable rate, and why should you avoid it?

When a fixed rate ends and nothing else is in place, your lender automatically moves you onto their standard variable rate, usually called the SVR.

The SVR is typically 3 to 4 percentage points higher than competitive fixed rates. On a £300,000 mortgage, falling onto the SVR can mean paying an extra £400 to £600 every month.

Lenders rely on this. They know many people don't act in time, and they make significant profit from those who fall onto the SVR by default. Being aware of when your deal ends is the single most valuable thing you can do as a homeowner.

How long does a remortgage take?

From application to completion, a remortgage typically takes 4 to 8 weeks. That includes:

• Getting your paperwork together
• Submitting the application
• Receiving the offer
• The legal process
• Switching lenders (if you're moving)

This is another reason to start six months early. Even with the best intentions, life gets in the way, and rushing the process can mean missing out on better deals or falling onto the SVR while you wait.

What if your circumstances have changed?

Many people worry that a change in income, a new job, or a new dependent might affect their remortgage. In most cases, it doesn't have to.

Lenders assess affordability based on your current situation. If you're earning the same or more, you're usually in a strong position. If your circumstances have changed significantly, a broker can find lenders who'll consider your specific situation rather than rejecting your application outright.

Should you stay with your current lender or switch?

It depends. Staying with your current lender (a product transfer) is faster and usually doesn't require new affordability checks. But you'll only see the rates they offer.

Switching to a new lender opens up the whole market and can mean significantly better rates, especially if your loan-to-value has improved or your income has gone up.

A broker compares both options and recommends what's actually best for you, not just what's easiest.

The bottom line

If your fixed rate is ending in the next six months, now is the time to start.

Acting early protects you from the standard variable rate, gives you access to the best deals, and removes the stress of rushing.

If you'd like to know what your options look like, book a free call with the Kudos Mortgages team. We'll search the whole market and tell you exactly where you stand. No obligation, no jargon, just honest advice.