When is the best time to remortgage your home?

Key takeaways

• Remortgaging involves paying off your existing mortgage with a new mortgage from a different lender

• The remortgage process is similar to the initial mortgage application, involving proof of income, a

  credit check, and property valuation

• You can avoid higher rates by switching before your current deal ends and locking in a competitive fixed rate to protect against future hikes

• As of June 2025, the Bank of England base rate is 4.25%, following a cut in May. Further cuts later this year are forecast, but not guaranteed

Remortgaging is when you take out a new mortgage on a property you own.

Homeowners normally do this for one of the following reasons:

• to switch to a cheaper mortgage deal

• to borrow money against the value of their property

• due to a change in circumstances – i.e. buying an ex-partner out of a property

It sounds intimidating, but remortgaging is actually quite easy – and if you plan it correctly, you could save yourself a considerable sum of money.

You’re allowed to apply to remortgage at any time, though there’s no guarantee you’ll be approved – but there’s definitely a time and a place to do it.

How does remortgaging work?

Remortgaging means changing mortgages by moving to a new lender. Transferring to a different deal with your current lender is known as a product transfer.

The application process for a remortgage mirrors the initial mortgage application. You'll need to provide proof of income, undergo a credit check, and have your property valued to ensure it meets the lender's criteria.

You should do your homework before deciding to remortgage. You should only make the application after you’ve carefully compared your current deal with those available on the market – preferably by looking at a range of providers, including the one you’re with at the moment.

This comparison will ensure you're not missing out on a better rate or more suitable terms.

When is the best time to remortgage?

The best time to remortgage is when it improves your financial situation.

This could mean lower monthly payments, reduced overall interest, or the ability to borrow additional funds for important life events or investments.

There are several scenarios where remortgaging might be the right move:

• Your fixed-rate mortgage deal is coming to an end.

• You're concerned about rising interest rates and want to secure a better rate.

• Current interest rates are lower than when you took out your original mortgage.

• You've built up significant equity in your home.

• When you want to overpay and your lender won’t let you.

• You want to buy someone else out of a property owned jointly

Remortgaging when your current deal is ending

Most favourable mortgage deals, such as fixed-rate and tracker mortgages, are short-term, usually lasting between two and five years.

When these deals end, you'll be moved to your lender’s standard deal – a standard variable rate mortgage, which often comes with a higher interest rate.

To avoid this hike in payments, it's wise to start looking for a new mortgage deal 3-4 months before your current one expires.

Early repayment charges are normally levied if you switch deals while still in the initial term of a fixed rate.

Remortgaging while interest rates are rising

When rates are rising, as they did rapidly during 2022/23, it can be smart to lock into a competitive fixed rate to protect you from future hikes.

However, on the flipside, if interest rates fall, you might be paying a higher rate than necessary.

Either way, consider remortgaging before your current deal ends.

Remortgaging when you’ve built up equity

An increase in your home's value can make you eligible for lower mortgage rates.

The loan-to-value ratio (LTV) is the ratio that indicates how much money you’re borrowing, compared to the total value of your property.

In general the lower your LTV, the better the mortgage rates you’ll be approved for.

Again, however, it’s important to consider the impact of any early repayment charges.

Remortgaging to borrow money

If your home's value has risen, you might be able to borrow more through remortgaging.

Lenders typically favour purposes like home improvements or debt consolidation rather than borrowing for holidays or new cars.

But remember, this isn't free money; it's a loan secured against your home.

Before you take this option, make sure this really is the cheapest way for you to borrow money. Your home could be at risk of repossession if you don’t repay the debt.

Other forms of loan are available, which may come with a more favourable interest rate and less risk of losing your home.

Remortgaging to overpay

Perhaps you've come into some money and want to pay off your mortgage faster.

Some lenders allow overpayments, but many mortgage agreements don’t as it means they make less money from interest overall.

Remortgaging with a new lender could allow you to reduce the loan size and potentially secure a cheaper deal. Just be cautious of early repayment charges or exit fees.

Our other related guides

Remortgaging With The Same Lender | MoneySuperMarket

Additional Borrowing on Mortgage | MoneySuperMarket

Do I Need a Mortgage Broker or a Lender? | MoneySuperMarket

Compare remortgage deals

Finding a new mortgage deal is quick and easy with MoneySuperMarket.

All you need to do is provide us with a few details about yourself, your property and your current mortgage and we will do the rest.

You can sort through a range of remortgage deals offered by leading lenders from across the market. We'll show you the initial rate and monthly cost, plus any associated mortgage fees so you can make an informed choice. If you're just after a quick calculation, our mortgage repayment calculator can help.

Your home may be repossessed if you do not keep up repayments on your mortgage