With hundreds of products to choose from, you would be forgiven for feeling confused about where to start your remortgage journey.
Fortunately, there are several steps you can take to prepare yourself and make confident, informed decisions ahead of securing a new deal.
According to UK Finance, around 1.8 million UK fixed-rate mortgages will have expired before the end of 2025, with the first half of the year shaping up to be a particularly busy period.
But don’t fret – here’s a few things that might help as you navigate the remortgage journey.
How to remortgage – one step at a time
Step 1: First, take a moment to get to grips with the terms of your current mortgage. Knowing exactly what you’re paying now will help you figure out whether a new deal is going save you money or lead to higher repayments.
Also, check when your current fixed-rate deal ends and how much you still owe on your mortgage, as you’ll need this information when you begin an application.
Step 2: Once you’re ready to scout the market, try speaking to a professional mortgage adviser. They can guide you through the available options, provide tailored advice based on your financial situation, and help you decide the best route. Plus, they often have access to exclusive offers you won’t find on your own.
Step 3: You have two main options to choose from when looking for a new deal: remortgaging or a product transfer. A remortgage involves switching to a new lender, which can lead to better rates and more flexible borrowing terms. On the other hand, a product transfer lets you switch to a new deal with your current lender. Ultimately, a mortgage adviser will be able to help you understand which option will suit your individual needs.
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When to start the remortgage process
The best time to start planning your remortgage journey is three to six months before your current deal expires. Waiting until the last minute could see you move onto your current lender’s standard variable rate, which will probably be more expensive. However, if your fixed-rate deal is set to expire in the coming weeks, don’t worry – you might still have time to switch to a new deal before it ends.
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Step 4: Once you’ve found the right deal, it’s time to apply. Your mortgage adviser will walk you through the steps and help you get the necessary documentation in order.
Early repayment challenges can apply
The most common challenge you’re likely to encounter when remortgaging is early repayment charges. Since your current deal is generally tied to the fixed-rate period, switching to a new product early can see lenders charge up to 5% of your outstanding mortgage debt as an early repayment charge.
That’s not to say you need to wait to secure a new deal. An adviser can help you can lock into a new mortgage deal months in advance with the security of knowing it will take effect as soon as your current one ends.
Checking your credit score
If your credit score has changed since you last took out a mortgage, this could have an impact on your remortgage options too. If it has improved, you may be able to get access to more lenders through your adviser.
On the other hand, lenders may see a drop in your credit score as a financial risk and may offer you higher interest rates as a result. Some lenders may even reject your remortgage application entirely if your credit score is too low.
It’s therefore always important to talk to an adviser. They are best placed to assess your current situation and guide you towards the best solutions.
If you have a few months before your deal ends, it is also worth taking time to improve your credit score where possible. You might take measures such as paying down debt, limiting new credit applications, and building a schedule of steady payments.
Remortgaging best practice
Finding the best deal isn’t always straightforward, but with preparation and the right support, you can navigate the remortgaging process with confidence.
While interest rates have lowered this year, it’s always worth keeping an eye on market trends. If interest rates have risen since your last deal, you’re unlikely to find an equally competitive offer and will need to plan for higher monthly repayments.
This is especially relevant if you’re coming off a five-year fix. Back in 2019, the average rate on a five-year deal sat at 2.5% but today it’s hovering around 5%.
Starting your journey with the support of a professional adviser will set you on the right path. Think of an adviser as your personal mortgage expert, taking the complexities of the market off your plate. Not only can they help you find the best deals tailored to your financial situation, but they can also assess which lenders are most likely to approve your application, saving you time and stress.
Before finding an adviser and considering an application, it’s best practice to get your finances in order – stability is key. Lenders will scrutinise any red flags, so steer clear of a few common missteps – avoid applying for credit too close to your application, refrain from erratic spending, and try not to dip into your overdraft if you don’t need to, as these can raise concerns and hurt your chances of securing the best deal.
Finding a new deal doesn’t have to be a stressful job. By preparing well and keeping professional advice at the centre of your journey, you can put yourself in the best position to find a great remortgage deal.
Clare Beardmore is Director of Distribution and Mortgage Club at Legal & General Mortgage Services
