Many homeowners ask, "When can you remortgage?" The right timing can make a significant difference in your financial situation. Remortgaging at the right moment can secure a lower interest rate, reduce monthly repayments, or release equity from your home. However, doing it at the wrong time could result in penalty fees, unnecessary costs, or even rejection from lenders.
Remortgaging is more than just switching deals—it is a legal and financial commitment that requires careful planning. Understanding when, why, and how to remortgage ensures you make the best decision for your circumstances.
This guide will explain:
By the end of this guide, you will have a clear understanding of when remortgaging makes financial and legal sense and how to approach the process correctly.
Remortgaging is the process of switching your existing mortgage to a new deal, either with your current lender or a different one. It allows homeowners to secure better terms, reduce costs, or access equity tied up in their property.
Many people confuse remortgaging with a mortgage renewal, but they are not the same.
There are two main types of remortgaging:
Product Transfer – Switching to a new mortgage deal with the same lender. This is usually quicker and involves less paperwork, but may not always offer the best rates.
Remortgaging with a New Lender – Moving your mortgage to a different lender to secure a better deal, borrow more, or change repayment terms. This involves affordability checks, legal work, and a new mortgage agreement.
Homeowners remortgage for various reasons, including:
Remortgaging can be a cost-effective way to improve financial security, reduce expenses, or unlock funds. However, the process requires careful planning, legal oversight, and an understanding of the costs involved. Speaking to a conveyancing solicitor can help you assess whether remortgaging is the right decision for your personal and financial circumstances.
The timing of a remortgage can have a significant impact on your monthly repayments, interest rates, and overall financial health. Acting too soon or too late can mean higher costs or missed savings opportunities. Understanding the right time to remortgage can help you secure a better deal and avoid unnecessary fees.
Most lenders require a minimum of six months before you can remortgage after purchasing a property. This means that if you have recently taken out a mortgage, you may need to wait at least half a year before applying for a new deal.
However, the exact timeframe depends on the lender’s policies and the type of mortgage you currently have. Some lenders may allow earlier remortgaging, particularly for those with special circumstances, such as homeowners looking to remove a name from a joint mortgage after a separation.
In some cases, remortgaging within the first year may come with early repayment charges (ERCs), making it financially unwise unless the savings from a new deal outweigh the penalties. It is essential to check your existing mortgage agreement and speak to a solicitor before making any decisions.
If you are on a fixed-rate mortgage, it is usually best to start exploring remortgage options three to six months before your deal ends. This allows time to compare lenders, check your eligibility, and secure a better rate before moving onto the Standard Variable Rate (SVR).
Many lenders offer a mortgage offer validity period, which means you can apply for a remortgage in advance and have it take effect once your current deal ends. By securing a new mortgage ahead of time, you can ensure a seamless transition without unnecessary increases in repayments.
Failing to prepare early may result in being placed on the lender’s SVR, which is often much higher than fixed or tracker rates. This can increase your mortgage costs significantly and make remortgaging more urgent.
Several factors influence the right time to remortgage. These include the end of a fixed term, equity growth, interest rate trends, and personal financial circumstances.
One of the most common reasons for remortgaging is to avoid moving onto the lender’s Standard Variable Rate (SVR). When your fixed-rate or tracker mortgage expires, most lenders automatically switch borrowers to their SVR.
SVR rates are typically much higher than fixed or discounted rates, meaning your monthly repayments could increase significantly if you do not remortgage in time. The best strategy is to lock in a new deal before your current one ends, ensuring financial stability and avoiding unexpected rises in payments.
Your Loan-to-Value (LTV) ratio plays a crucial role in determining your mortgage rates. LTV is the percentage of your property’s value that is covered by your mortgage.
For example, moving from a 90% LTV mortgage to an 80% LTV mortgage could open the door to lower interest rates and reduced monthly repayments. If you believe your property has increased in value, obtaining a new valuation before remortgaging could help you secure a better deal.
Mortgage rates fluctuate based on economic conditions, lender competition, and central bank policies. If interest rates have dropped since you took out your mortgage, you may be able to switch to a lower rate and reduce your monthly repayments.
Even if you are still within a fixed-term deal, it may be worth calculating whether early repayment charges (ERCs) are lower than the savings you would gain from remortgaging.
However, predicting interest rate movements can be challenging. Seeking expert legal and financial advice before making a decision can help ensure you are making the right move at the right time.
Your personal and financial situation can impact the best time to remortgage.
Most lenders allow homeowners to remortgage at any time, but the key question is whether it is financially beneficial. If you are on a fixed-rate mortgage, switching before the deal ends may trigger early repayment charges (ERCs).
For those on a variable rate or tracker mortgage, remortgaging early may be easier, as these products often have fewer exit penalties. However, you will still need to consider valuation fees, legal costs, and potential lender charges when making your decision.
Interest rates change based on economic conditions, inflation, and central bank policies. If rates are expected to rise, locking in a lower fixed-rate deal early could save money over the long term. Even if an early repayment charge applies, the savings gained from switching to a lower rate may outweigh the penalty.
Before dismissing the idea of early remortgaging, it is important to calculate potential savings. If a new mortgage deal offers significantly lower interest rates, the amount saved over the remaining term may exceed the exit costs. A solicitor or mortgage adviser can help assess whether this is a cost-effective move.
While there are benefits, early remortgaging also has potential drawbacks, particularly in the form of fees and penalties.
ERCs are typically a percentage of the remaining mortgage balance and are applied when a borrower leaves a fixed-term deal early. The exact percentage depends on the lender and how much time is left on the fixed term.
For example:
It is essential to check the mortgage agreement before making any decisions, as ERCs can add a significant cost to remortgaging.
In addition to ERCs, early remortgaging may involve:
Yes, but it depends on the lender’s exit terms and how much time is left on the deal. Fixed-rate mortgages usually have stricter penalties for early exit, making it important to weigh the costs against potential savings.
Some lenders offer flexibility, allowing borrowers to remortgage within a set window before the fixed term ends without incurring ERCs. Checking the mortgage agreement or speaking with a solicitor can clarify the options available.
Early remortgaging may not be the right choice if:
Every homeowner’s situation is different, and deciding whether to remortgage early requires careful financial and legal consideration. Consulting one our our personal solicitors can help assess whether early remortgaging is a sensible financial move, ensuring you understand the costs, risks, and potential savings before making a decision.
Remortgaging requires careful preparation to ensure a smooth process and the best possible deal. Taking the right steps early can help you avoid delays, secure better rates, and meet lender requirements without unnecessary stress.
Before applying for a remortgage, it is important to review your credit report. Lenders assess your credit history to determine your reliability as a borrower. Checking your report early allows you to identify and correct any errors before lenders conduct their checks.
Your credit report includes details about past borrowing, repayment history, and outstanding debts. Factors such as missed payments, defaults, or high levels of debt could affect your ability to secure a competitive mortgage rate. If there are any inaccuracies, you can dispute them with the credit reference agency to ensure your report reflects your true financial position.
A strong credit score improves your chances of being approved for a remortgage at a lower interest rate, potentially saving you money over the long term.
Your credit report includes:
However, certain factors are not recorded on your credit report, such as:
Even if lenders cannot see your salary directly, they will consider your income and affordability assessment as part of the remortgage application. This is why preparing supporting documents is essential.
Before remortgaging, you need to find out how much you still owe on your current mortgage. This is known as the redemption figure. It includes:
You can request this figure from your current lender. Having an accurate redemption figure helps you calculate how much you need to borrow on your new mortgage, ensuring you do not end up under- or over-borrowing.
The value of your property plays a crucial role in determining the mortgage rates available to you. Lenders use your loan-to-value (LTV) ratio to assess the risk of lending. The lower your LTV, the better the mortgage deals you may be eligible for.
For example:
Many lenders will conduct their own valuation before approving a remortgage, but it is helpful to get an estimate yourself. Online valuation tools or local estate agents can provide a general idea of your home’s current market value.
Applying for a remortgage involves providing financial documents to prove affordability. Gathering these in advance can speed up the process and prevent delays. Lenders typically request:
If you are self-employed, lenders may require two to three years of tax returns or accounts, along with SA302 forms from HMRC. Preparing these documents in advance ensures your remortgage application progresses without unnecessary setbacks.
The remortgaging process typically takes four to eight weeks from application to completion. However, the exact timeline depends on several factors, including whether you stay with your current lender or switch to a new one. Understanding the process and potential delays can help you plan ahead and avoid unnecessary stress.
The remortgaging process follows several key stages:
Initial Research and Decision Making (1–2 Weeks)
Homeowners begin by assessing their current mortgage deal, comparing new offers, and deciding whether to remortgage with the same lender or switch.
Mortgage Application Submission (1 Week)
Once you choose a deal, you will need to submit a formal application, which involves affordability checks, a credit assessment, and supporting documentation.
Property Valuation (1–2 Weeks)
If you are switching lenders, a valuation may be required to confirm the property’s market value. Some lenders use automated valuations, which speed up the process, while others conduct in-person assessments.
Lender Approval and Mortgage Offer (1–3 Weeks)
The lender reviews your application and issues a formal mortgage offer. This can take longer if there are delays in processing paperwork or assessing financial eligibility.
Legal Work and Completion (1–2 Weeks)
A solicitor or conveyancer will handle the legal side of the remortgage, including verifying property details, ensuring the lender’s requirements are met, and arranging fund transfers.
Once the process is complete, the new mortgage replaces the old one, and funds are released if you are borrowing additional equity.
If you remortgage with your current lender, the process is often quicker as there is no need for a new valuation or full legal checks. This is known as a product transfer and can sometimes be completed in as little as two weeks.
Switching to a new lender takes longer as they must conduct affordability checks, property valuations, and legal work before approving the new mortgage.
A property valuation is a crucial step in the remortgaging process. If a lender requires a full inspection rather than an automated valuation, this can delay the process by a few weeks. Ensuring your home is in good condition and that all necessary paperwork is available can help prevent delays.
Credit checks also play a key role. A poor credit score or discrepancies in financial history may require additional lender assessments, which can slow down approval times. Checking your credit report before applying can help avoid unexpected issues.
A solicitor or conveyancer is required to handle the legal aspects of a remortgage. Their role includes checking property ownership details, reviewing mortgage terms, and ensuring a smooth transition between lenders.
Delays can occur if there are outstanding legal issues, such as property disputes or incorrect title deeds. Choosing an experienced solicitor who specialises in remortgaging can help prevent unnecessary hold-ups.
Remortgaging comes with various costs, some of which are unavoidable, while others may be covered by lenders as incentives. Understanding these expenses helps homeowners assess whether remortgaging is financially beneficial.
Early repayment charges (ERCs) are fees imposed by lenders if you exit a fixed-rate mortgage before the agreed term ends. These charges are usually a percentage of the outstanding loan balance and decrease as you approach the end of the fixed term.
For example:
Before remortgaging, check your mortgage agreement or contact your lender to confirm any ERCs. If the costs are too high, it may be better to wait until the fixed term ends.
Some lenders charge an arrangement fee or product fee when setting up a new mortgage. These fees can range from £500 to £2,000 and may either be paid upfront or added to the mortgage balance.
If added to the loan, the fee will accrue interest over time, increasing the overall cost of the mortgage. It is important to compare mortgage deals with and without fees to determine which offers the best long-term value.
If you are switching to a new lender, a valuation is required to assess your property’s current market value. Many lenders offer free valuations as an incentive, but if not, the cost typically ranges from £150 to £500, depending on the property size and location.
Legal fees for remortgaging usually range from £300 to £1,000. Some lenders cover legal costs as part of a remortgage package, but this often comes with conditions, such as using a solicitor from their approved panel.
The total cost of remortgaging depends on the fees, penalties, and savings from a lower interest rate. In many cases, securing a better mortgage deal outweighs the upfront costs, but homeowners should carefully calculate the financial impact before proceeding.
Our property solicitors can help review the terms of your current mortgage, assess potential costs, and ensure the remortgaging process is handled efficiently.
If you wait until your current mortgage deal ends, you may automatically move onto your lender’s Standard Variable Rate (SVR), which is often much higher than fixed or tracker rates.
Solution: Start shopping for a new mortgage three to six months before your current deal expires to avoid unexpected rate increases.
A lower interest rate does not always mean a better deal. Some remortgages come with high product fees that cancel out any savings on repayments.
Solution: Compare the total cost of the new mortgage, including fees, to determine if switching is truly beneficial.
Remortgaging can involve costs such as early repayment charges (ERCs), valuation fees, legal fees, and arrangement fees. These can add up and reduce the financial benefits of switching.
Solution: Calculate all associated costs before remortgaging and ensure any potential savings outweigh the upfront expenses.
A poor credit score can limit your options or result in higher interest rates, making remortgaging less beneficial.
Solution: Check your credit report early, correct any errors, and take steps to improve your score before applying for a new mortgage.
Extending your mortgage term may lower monthly payments, but it increases the total amount of interest paid over time. Conversely, shortening your term may raise monthly repayments, but you will clear the debt faster.
Solution: Consider a mortgage term that balances affordability, flexibility, and long-term financial goals.
There is no limit to how often you can remortgage, but lenders may impose restrictions. Most homeowners remortgage every two to five years when their fixed-rate deal ends. However, frequent remortgaging may lead to early repayment charges and arrangement fees, reducing potential savings.
Most lenders require homeowners to wait at least six months before remortgaging. However, some specialist lenders may allow earlier remortgaging under certain circumstances, such as refinancing a high-interest loan or removing a co-borrower from the mortgage.
Yes, you can remortgage to release equity and use the funds as a deposit for another property. This is commonly done for buy-to-let investments or purchasing a second home. However, lenders will assess affordability, your loan-to-value (LTV) ratio, and your ability to manage multiple mortgage commitments.
If you remortgage early and later decide to cancel, you may face early repayment charges (ERCs) and other fees. Once contracts are signed, reversing the process can be difficult. To avoid unnecessary costs, compare deals carefully and seek legal advice before committing to a remortgage.
Staying with the same lender (product transfer) can be quicker and involve fewer checks, but it may not offer the best rates. Switching to a new lender can provide better interest rates and savings, though it requires affordability assessments, a new valuation, and legal work. Comparing both options ensures you get the most cost-effective deal.
Remortgaging is an important financial decision that requires careful timing and preparation. Switching to a better deal can help reduce costs, release equity, or secure a more suitable mortgage, but it is essential to understand the legal and financial implications before making a move.
At TBI Solicitors, we provide expert legal support throughout the remortgaging process. Our team ensures that all contracts, fees, and legal obligations are clearly explained, helping you avoid costly mistakes and unnecessary delays. Whether you are switching lenders, releasing equity, or remortgaging early, we can guide you through every step to ensure a smooth and legally secure transition.
Start planning your remortgage today. Contact our team for professional legal advice and support tailored to your needs.
We have law offices in Hartlepool, Barnard Castle, Stockton and Wynyard, or we can arrange a video call. Contact us today!
