November 10, 2022
Russell Braiden

When Should you Remortgage?

Back to News
blog image

When Should you Remortgage?

There are many different reasons why you may be considering remortgaging your home. From saving money on your monthly repayments, to raising funds to undertake large home improvement projects, whatever the reason may be it’s important you know when the best time is to remortgage.

The time when interest rates are low is usually the best time to consider a remortgage as you will be able to get a better deal and in turn save money in the long run. Other factors to consider include how much equity you have in your home.

Rising Interest Rates

We’ve all seen in the news that interest rates are rising at an alarming rate. Further increases are expected to be announced shortly which will affect the cost of borrowing so it might be worth considering switching to a cheaper deal before this happens.

If your mortgage is a variable rate mortgage, changes to the Bank of England’s (BoE) base rate will affect your repayments directly. For tracker mortgages, this impact will be felt even more significantly as they are based on the BoE’s base rate. Fixed rate mortgages however will not be affected by the base rate changes until their term ends and moves to the lender’s Standard Variable Rate (SVR).

Switching to a New Mortgage Deal

If you have 6 months or less remaining on your existing mortgage you may be considering remortgaging. With savings of hundreds of pounds a month, switching to a new mortgage and fixing your mortgage could be a great idea.

When mortgages come to an end, you are moved automatically to your lender’s basic deal – a Standard Variable Rate (SVR). This is likely to mean an increase in monthly costs as the rate will be higher. In the majority of cases you will save money by switching to a new deal as opposed to being moved to your existing lender’s SVR.

Unlocking Equity

Another reason for remortgaging is to unlock equity that you may have built up over time in your property. If the value of your home has increased since you took out your mortgage then you will end up in a lower loan-to-value bracket (LTV). The lower the LTV, usually the more equity you have and subsequently, you will be more likely to be eligible for lower mortgage rates.

If you decide to change mortgage lenders you will need to consider any associated costs that might come with switching to a different lender, including any arrangement fees or legal fees.

Where can I Find a New Mortgage Deal?

If you would like to know more about your options when it comes to switching your current mortgage rate to a new deal, contact Transparent Mortgage Services on email

Contact Us Image
Book a FREE 15min Consultation
Book Now
We have created an easy process, with expert advice
Discuss your options

Speak to a friendly, expert Mortgage Adviser about your unique mortgage needs.

Compare deals

We'll search 1000s of products for the best mortgage and present our advice to you.

Submit your application

Your Adviser will complete your application, liaise with the lender and you, keep you informed until completion.