When to remortgage
Remortgaging can be great way to save money and is something you should consider regularly to make sure you’re on the best mortgage deal.
There is no set time when a person should remortgage as it will all depend on your personal circumstances and the reason why you are thinking of remortgaging. But it is especially worth thinking about a remortgage when you are getting near the end of a fixed rate deal or now if you are on your lender’s standard variable rate.
Why to remortgage?
There are a range of reasons why you might want to move onto a new mortgage deal, they include:
- To save money
- To move onto a fixed rate deal so you can be certain of what your repayments will be
- To release equity in your home if it has gone up in value
- To fund home improvements
- To move onto a mortgage that better suits you current circumstances e.g. longer/shorter term or greater flexibility with payments
For a remortgage to be worthwhile both the cost and the product features of the new mortgage need to be right for you.
Cost of switching mortgage
The first thing you should do is work out how much switching will cost you by comparing what your current mortgage costs and what a new deal would cost you. Make sure you compare typical remortgage rates . Remember to include the cost of any exit penalties that may apply to your current deal and any arrangement fees to set-up the new mortgage.
There is more information about working out the cost of remortgaging in our should I remortgage? guide.
The best remortgage for you
You also need to make sure the new mortgage suits your circumstances. You may find that a different type of mortgage may suit you better such as a fixed rate mortgage deal if you want to be certain of what your monthly repayments will be or an offset mortgage if you have savings which you’d like to use more effectively.
There may also be specific mortgage features that you are looking for e.g. you may want the flexibility to make overpayments or underpayments or the option to take repayment holidays. You may want move onto a shorter or longer repayment term or you may want a portable mortgage that you can take with you if you move house.
Getting mortgage help
If you want to find the right deal for you it is worth getting impartial, expert advice. Our advisers can help you to find mortgages that will save you money and will match your circumstances.
You can speak to a Which? mortgage adviser by calling us on 0117 981 7787 or request a call back. Our advisers look at every mortgage from every available lender, and because they’re paid a salary – not a sales commission – you can have confidence that you’ll receive truly impartial advice.