When should you remortgage?

Planning around your deal end date

Consider reviewing your options around six months before your current deal ends. Lenders' product-transfer windows and mortgage-offer periods vary. Check your current deal end date, any early repayment charge and the costs of changing your mortgage before deciding when to proceed. Some lenders may let you reserve a deal ahead of your current deal ending or change to an available rate before completion. The rules, timing, eligibility and any costs vary. Rates may rise or fall; a lower rate or a change to a reserved deal is not guaranteed.

Understand your follow-on rate

When your current deal ends, your mortgage may move to your lender's follow-on rate, often called the standard variable rate (SVR). Check your lender's terms, the applicable rate and your next payment. Compare suitable alternatives using the full cost, including fees and charges, rather than assuming that switching will be cheaper.

Compare payments and overall costs

Your next payment depends on the mortgage balance, remaining term, repayment type and rate. Ask for a comparison of your follow-on rate, available product-transfer deals and suitable remortgage options. Include fees, any early repayment charge and the period being compared. A lower headline rate does not necessarily mean a lower overall cost.

What changes the answer

Your loan-to-value (LTV, the mortgage balance as a proportion of the property value), credit profile, income, commitments and future plans affect your options. A change in property value or mortgage balance may affect the products available. Ask your adviser whether any planned overpayment would affect eligibility or costs; check overpayment limits and charges first.

Compare before deciding

If your deal ends soon, contact your lender or adviser to discuss the options available within the time remaining. A product transfer may involve less administration, but neither staying nor moving lender is automatically better. The comparison should reflect your circumstances, overall costs and practical timing.

Common pitfalls we see

Check your deal end date and follow-on rate, compare your existing lender's offer with suitable alternatives, and allow time for any application, valuation and legal work. Tell your adviser about changes in income, commitments or credit. The steps and time required depend on your chosen route and lender.