Around six months before your fixed-rate deal ends is a sensible time to start reviewing your mortgage options. This gives you time to compare deals, prepare your documents and plan a suitable start date. It does not mean you need to leave your current mortgage immediately.
The right timing depends on your existing deal, any early repayment charges and the rules of the lender you choose. This guide focuses on homeowners approaching the end of a fixed-rate deal, rather than the end of their entire mortgage term.
When should I start looking for a remortgage?
Start with your mortgage statement, original offer or lender's online account. Confirm your deal end date, outstanding balance, remaining mortgage term and any charges for leaving. If you have more than one mortgage part, check the dates for each one.
Use the months before your deal ends to compare your lender's options with deals available elsewhere. Discuss changes to your income, household or plans before choosing a product. Moving home, making a large overpayment or borrowing more could affect what is suitable.
Switching lenders involves an application and may require legal work and a valuation. Leave room for questions and delays rather than treating your deal end date as the day to start applying.
What happens when my fixed-rate mortgage ends?
If you do not arrange a replacement deal, your mortgage normally moves to the follow-on rate set out in your agreement. This is often the lender's standard variable rate, or SVR. That rate can change, and your monthly payment could be higher than under your fixed deal.
Your fixed rate ending does not usually mean the whole mortgage must be repaid. For example, a two-year fixed deal can end while many years remain on the mortgage term. If the full term is also ending, you need to discuss repayment or other arrangements separately, particularly for an interest-only mortgage.
Can I remortgage before my fixed rate ends?
You can often apply for a replacement mortgage before your current fixed rate finishes. Applying, receiving an offer and completing the remortgage are different stages. The new mortgage normally repays the old lender on completion, not when you first apply.
An offer has an expiry date and conditions. Check that it will remain valid for your intended completion date, and tell your adviser and lender if your circumstances change. Starting early does not guarantee an offer or a particular completion date.
Completing while an early repayment charge (ERC) applies can be expensive. Check the exact date the charge stops applying with your current lender; do not assume it from your usual payment date. The completion date should take that charge into account.
As a simple illustration, a 2% charge on a £200,000 balance would be £4,000. Your actual charge depends on your agreement and the lender's calculation. Switching early only makes financial sense if the benefits justify the costs and it suits your plans.
Should I remortgage or stay with my current lender?
A remortgage usually means moving your mortgage to another lender while keeping the same property. Taking a new deal with your current lender is commonly called a product transfer. It is worth considering both routes.
Staying with your current lender
A straightforward product transfer can involve less administration and may not require a fresh affordability assessment when you are not borrowing more or making other changes. Eligibility, switching windows and early-switching charges depend on your lender. Staying is convenient, but it is not automatically the best-value option.
Moving to another lender
A different lender may offer a more suitable deal, but will normally assess your income, spending, credit history and property. Compare the potential benefit with the application process, fees and time involved. A lower advertised rate alone is not enough to decide which route is right for you.
What costs should I compare before remortgaging?
Look at the overall cost over a comparable period, not just the interest rate or first monthly payment. Check:
- Any early repayment charge and exit or administration fee.
- The new mortgage's product or arrangement fee.
- Legal and valuation costs, including any package exclusions.
- Cashback or other incentives, and their conditions.
- The payments, interest and balance remaining over the period.
Adding a fee to the mortgage means paying interest on that fee while it remains part of the loan. Extending the mortgage term can reduce monthly payments but increase the interest paid overall. Neither should be treated as a saving without checking the full effect.
Could my property value affect my remortgage rate?
Your loan-to-value (LTV) is the mortgage balance as a percentage of the property value accepted by the lender. For example, a £180,000 mortgage on a property valued at £240,000 has a 75% LTV.
Repaying the balance or an increase in the property's value may move you into a lower LTV band, which can give access to different rates. A valuation lower than expected can have the opposite effect. Your own estimate does not guarantee the value a lender will use.
What documents should I prepare?
The documents needed depend on your circumstances and whether you are switching lenders or arranging a product transfer. Useful information to have ready includes:
- Your latest mortgage statement and current deal details.
- Identification and proof of address, if requested.
- Recent payslips and evidence of other income.
- Tax calculations, tax year overviews or accounts where relevant if you are self-employed or a company director.
- Bank statements and details of regular spending and debts.
I can confirm which documents are needed for your application and how to provide them securely. You do not need every document ready before booking an initial conversation.
Common questions about remortgage timing
What if mortgage rates fall after I apply?
Ask your adviser whether the lender allows a change to an available lower rate before the new deal starts. This is not automatic: deadlines, eligibility, fees and offer conditions may apply. Changing lenders may mean a new application and extra time.
Should I wait for interest rates to fall?
Future rates are uncertain. Waiting could mean paying the follow-on rate for longer, and a lower rate may not arrive when you need it. Compare the options available to you with your budget and preferred level of payment certainty, rather than relying on a prediction.
What if my deal ends in a few weeks, or has already ended?
You can still review your options. Check the current lender's product-transfer availability alongside a remortgage elsewhere. A product transfer may be quicker, but compare its suitability and cost. Do not assume a switch can complete before your next payment.
Can I remortgage if my income or credit history has changed?
Possibly, but your options will depend on what has changed and the lender's criteria. Mention reduced income, a new job, self-employment or missed payments early. A product transfer may also be worth checking, but neither route guarantees acceptance.
If you are worried about affording your payments, contact your existing lender promptly, even while exploring other options. Do not wait for a remortgage application to solve an immediate payment difficulty.
Want help planning your next mortgage deal?
I can review your current mortgage, discuss your plans and compare the options available for your circumstances. That includes considering whether staying with your lender or moving elsewhere is the more suitable route.
I do not charge a mortgage broker fee. I receive commission from the lender when your mortgage completes. Lender fees and other costs may still apply, and I will explain the relevant costs before you decide to proceed.
Book a free initial remortgage conversation or read more about my remortgage advice service.
This guide is general information, not a personal mortgage recommendation. Products, criteria and lender processes can change. Any recommendation will depend on your individual circumstances.
Your home may be repossessed if you do not keep up repayments on your mortgage.