When should I consider remortgaging?

The Cedar Crest Team
13 minutes ago
3 min read

Key moments when switching your mortgage might be financially wise

Remortgaging has become a regular feature of modern homeownership. For many households, it’s not a question of if they will remortgage but when. At the right time, it can lower monthly payments, offer greater financial stability, or unlock property equity for other goals.

Understanding the market and personal circumstances that make remortgaging a sensible choice is essential to managing your mortgage effectively over the long term.

When a Mortgage Deal Is Ending

One of the most common times to remortgage is when a fixed or tracker deal is coming to an end. Once this initial term expires, most lenders automatically move borrowers onto their standard variable rate (SVR), which is usually higher than market rates.

This shift can lead to a sharp rise in monthly payments. Acting early helps avoid that. Many lenders now allow homeowners to secure a new mortgage deal up to six months before their current one ends, ensuring a seamless transition and continued savings.

When Interest Rates Are Changing

Wider market conditions can make remortgaging a more appealing option.If interest rates fall, switching could allow homeowners to lock in a more affordable mortgage deal. Even a small reduction in rates can lead to substantial long-term savings, especially for larger loans.

Conversely, during times of rising rates, some borrowers choose to remortgage early to fix their payments before costs climb further. This approach involves weighing potential early repayment charges against the benefit of securing long-term payment certainty.

When Borrowing Needs Change

Life doesn’t stand still and neither should your mortgage.Remortgaging can help adjust borrowing to reflect new priorities.

For example:

Raising funds for home improvements, debt consolidation, or supporting family.
Shortening the term or choosing a product that allows higher overpayments if income has increased.

In each case, remortgaging helps ensure your loan structure continues to align with your current financial goals.

When Property Value Has Risen

A rise in property value can unlock more attractive mortgage opportunities. As equity grows, your loan-to-value (LTV) ratio improves — which often qualifies you for better rates.

For example, moving from a 90% LTV to 80% or 75% can significantly reduce your interest rate and monthly payments. The same applies if you’ve made consistent overpayments. In short, a stronger equity position means greater choice and potential savings.

When Personal Circumstances Change

Changes in employment, moving into self-employment, or preparing for retirement can all make remortgaging worth considering.

Some borrowers may need more flexibility in repayment terms, while others prioritise long-term stability. However, not every situation makes remortgaging the right choice early repayment charges, arrangement fees, and affordability checks must all be factored into the decision.

The best timing depends on balancing the costs against the potential long-term benefits.

A Continuing Part of Homeownership

For most homeowners, remortgaging isn’t a one-off event, it’s part of a long-term financial strategy. Each new deal is a chance to reassess your goals, respond to changing rates, and adapt to new life stages.

Recognising trigger points such as an expiring deal, changing interest rates, new borrowing needs, or rising property values, helps ensure you make the most of each opportunity.