4 instances where it pays to remortgage right now

As interest rates rise, grabbing the best deal when remortgaging will certainly be a priority. When achieving just that however, timing is everything!

Pinpointing the right time to remortgage can make all the difference, whether you are remortgaging to release equity or on the lookout for more digestible monthly repayments. So, when is the time to remortgage? Here we reveal four instances where it pays to remortgage right now.

1. You’re near the end of a fixed term

If you are coming to the end of your fixed-term product, now is the time to consider your options. While remortgaging with the same lender is certainly a possibility, it may not be the best route to a cheaper deal.

Known as a product transfer, remortgaging with the same lender saves time but might not save you money. Seeking independent mortgage advice regarding the product that will be the best fit for you going forward will ensure the whole market can be scoured on your behalf and the best possible deal for your requirements secured.

2. You’re on a fixed term with six months left

There’s good news if you have six months left until your fixed term ends. You can start to look for a new deal right now.

Mortgage offers are generally valid for a period of 3 to 6 months, meaning you can start the remortgaging process and get the deal you desire with plenty of time to spare. Again, seeking advice from an independent mortgage advisor (just like us) will ensure you’re one step closer to the mortgage deal that works for you and your budget.

3. You’re on a tracker mortgage

If you didn’t fix it and instead opted for a tracker mortgage, the recent base rate rises will have been giving you a headache. The monthly cost of a tracker mortgage after all rises and falls with this base rate.

While once a cheaper option than fixed rate deals (when the base rate was low) and well known for their flexibility, fixing your tracker mortgage could provide the certainty needed to negotiate an otherwise uncertain economy in the coming years.

You should seek advice from a mortgage advisor regarding whether ending your tracker mortgage and fixing is the best option for your circumstances.

4. You’re on an SVR mortgage

An SVR – or Standard Variable Rate – product is another mortgage type that may result in you paying much, much more. An SVR mortgage is usually the product your fixed deal will automatically revert to if you choose not to remortgage, and it’s generally the most expensive.

While the interest rate is set by your lender, not the Bank of England, payments from month to month can fluctuate as they do with the tracker mortgage. This makes fixing your mortgage a much better option in the long term. There are however some positives to SVR mortgages in the short term as Which? explains:

“Generally, you’ll pay more on a lender’s SVR than on a fixed-term deal. So, if your deal is coming to an end, you could consider remortgaging to a new deal. On the other hand, SVR mortgages tend to offer more flexibility if you plan to remortgage or move house in the near future, as you’re unlikely to face an Early Repayment Charge – a penalty for repaying your loan sooner than the term.”

Ready to remortgage? Do just that with a little help from our experts. Please contact us today to discuss your circumstances.